Financial Technologies And The Future Of Traditional Banking

With the transformation in all areas, many innovations, including financial technologies, have entered our lives. Due to the fundamental processes and digital platforms that the technology brings with it, we are confronted with many innovations. We are moving towards a process that includes innovation in many areas with outcomes and rationale.

As technological environments and tools evolve, so does the way people and the world change. There have been significant advances in fundamental processes in many sectors and areas that affect human life with technology. Significant progress has been made by developing new applications that make people’s lives easier and speed up processes. In this sense, with the advancement of technology, the state of indispensability for human life keeps increasing.

Technology and digitization, on the other hand, bring about irreversible and functional changes in the area they affect and form the basis of progress. Without the technological environment and digital tools, it is almost impossible to advance in any field. However, a company that has managed to drive technological innovation and integrate digitization into any sector will achieve significant success. An industry or institution in particular that wants to be part of the world of the future cannot think independently of technology. Technology and digital transformation processes will be among the basic criteria that will show whether a sector can exist in the future vision.

Finance is one of the areas most affected by technological environments and digital platforms. In the field of finance, technology has started a fundamental transformation process. Since there are many digital platforms and applications in the financial sector, a new application order has been introduced in contrast to traditional banking applications.

In the financial sector, transactions use digital environments. In fact, digital environments that use traditional applications for transactions such as authentication or data control offer more secure data. In this sense, fintechs can be seen as a fundamental field that, in the context of the processes it reveals, will bring about radical changes in the financial sector.

The fact that almost all banking transactions can be done through different channels such as mobile applications or internet branches can be an idea for the world of the future. As an investor, I think that financial technologies will have an important place in the future. With the further development of financial technologies, these will gain in importance and create an established financial order.

How Are Financial Technologies Developing?

If we look at a lot of content of financial technology applications, it becomes clear that the reason for their creation is not related to finance. Fundamental developments that are currently driving progress with significant functionality often have a different origin. It shows that important results are achieved when technological developments and digital environments are integrated into finance.

It is very important that in the field of finance, many transactions can be carried out and the whole process can be completed without the need for a bank branch. Mobile banking applications are among the most important examples of this. It can benefit from many options like money transfer, payment, spending or shopping without using a bank branch. The scope of mobile banking applications, another financial technology, continues to expand.

With each passing day, a new service is added and traditional banking practices are almost called into question. Individual services offered by financial technologies can appear negative to financial institutions and banks. Especially with the advent of technology, one might think that these institutions are not needed. However, financial institutions and banks must receive a message of digital innovation from this situation. Because in the world of the future there will no longer be an institution that is not involved in the technological innovation process.

Financial technologies can be developed for use in investment or banking, or they can take the form of integrating technologies in other areas. However, as an investor, I believe there is important potential for the future of fintech. In the future, important initiatives for the development of financial technologies and the introduction of innovations will emerge. In this context, the field of fintech is one of the areas that can be significantly invested in and further developed.

New updates and changes in this area will ensure continuous progress. With this in mind, it is natural for many companies and businesses to work in the field of financial technologies. Investors, on the other hand, can turn to related companies and institutions if they see the potential here. This can result in companies working on FinTechs gaining significant value, especially in terms of investments. However, this initiative may have a common process with the development of singles wrestling.

How Will Traditional Banking Change?

The fact that financial technologies are in a fundamental development process will reveal important changes in the field of banking and investment. I think there will be an important transformation process that will change the platforms on which investing and banking are done. I am of the opinion that the corporate customer relationship will change completely in the traditional understanding of banking.

Due to the fundamental services of financial technologies, areas such as banking institutions and branches, which are expected to lose their functionality, may not be needed. I think that today’s banks and financial institutions will turn to other areas, such as consulting. In the years to come, there may not be a need for differences like traditional banking and banking practices. Comparing them to the results and outcomes of financial technologies, traditional banking applications fall short.

The quality and speed that financial technologies offer is significantly higher than that of traditional banking. In addition, the processes introduced by financial technologies are quite secure and systematic. It would be a wrong view to expect bank branches or banking institutions in the world of the future. I also think that financial institutions that have integrated financial technologies into the world of the future will have an important impact. Banks and other financial institutions must initiate digital innovation processes.

I think that the development of security services will be one of the most important outcomes that will emerge as financial technologies develop. Possibly in the future we will face more secure financial services in different applications and processes. The fact that various controls such as authentication and data reconciliation are performed fairly rigorously is one of the main reasons that proves this. Today we will come across quite advanced forms of this situation and many times safer financial services will be offered. In particular, the incorporation of new software and technological advances such as blockchain technology will accelerate this process.

See you in the next post,

Anil UZUN