For at least ten years now, the Financial industry will look back at smartphones as an innovation as phenomenal as the Automated Teller Machine (ATM). Right now, smartphones are already making waves in the business and corporate world. Corporate investments are now focused on mobile technology, especially as we move a huge bulk of our financial transactions into our mobile phones.
All these may simply mean convenience for users. People with smartphones are now enjoying a number of apps that make both personal and business life more seamless, with financial transactions included. However, these developments mean something more for financial institutions. Innovation will now take a new phase for banks, credit card companies, and even small lending companies. With almost everything going online and mobile, these financial institutions need to beef up their innovations, in a way that they can cope with the other advances in mobile and cyber technology.
A number of banks in Canada has already transitioned to mobile banking, which includes allowing clients to pay their bills or send money to another account. Other than this, a technology that allows cheque deposit by simply scanning this is currently in its development stage.
Another growing trend now under the FinTech is the development of finance apps. These are Android, Blackberry, and iOS apps that basically allows financial management easier for the user. Some of the few things that these apps can do are budgeting, bills scheduling, expense tracking, stocks market updates, and even investment prospects. The development and availability are expanding every quarter, with more software engineers shifting their focus on these financial apps, as well. This is another area that financial institutions can tap in order to stay relevant and innovative. Creating their own app, targeting their own client base is a strategic way to make the most out of the growing smartphone market. For instance, a bank can launch their own dedicated app that will allow the user to perform all the basic banking tasks from balance inquiry to bills payment. While this kind of facility has long been done for online banking, platforms for mobile technology are still to be enhanced and replicated.
Being in a smartphone era could totally change the way we manage our finances, while financial institutions also battle to stay in the loop of the technology ladder. However, it should be noted that along with these developments, comes new risks to finance and banking; which are causes of major panic attacks for every financial executive. Data breaches, fraud and privacy issues are at the top of the list. With this, although smartphones maybe a smarter way to handle finances, it still calls for an even stronger human vigilance to protect massive fraud cases.