The Role of IT in Enhancing Financial Services: From Platformization to Remote Solutions

The rapid growth of scientific and technological progress and new information technologies have a significant impact on the overall assessment of the attractiveness of financial services firms. The development of technological progress allows not only to increase the speed of document processing and cash transactions but also to expand the client base. Thanks to the Internet, the relationship between the client and the financial services firm becomes more efficient, which also allows for differentiated work with the client depending on individual preferences, risk propensity, and the formation of the client's portfolio.

What is Information Technology and How Does It Enhance Financial Services?

Information technology (IT) is the application of various techniques, hardware, and software tools, and technological processes for gathering, storing, processing, distributing, and repurposing information, which helps reduce the labor intensity of managing information resources and increases their reliability and efficiency.

The development of information technologies can significantly reduce the distance between financial services firms and consumers of financial services, significantly intensify inter-competition, and consequently promote the development of financial services in both quantitative and qualitative aspects.

In the modern world, the following trends in the informatization of the financial sector are observed:

1. Platformization.

One of the most noticeable trends in IT development in financial services firms is related to platforming, blockchain technologies, transformation of service offices, and development of remote service delivery channels. This trend reflects a shift towards more efficient, secure, and accessible financial services, driven by technological advancements and the need for greater customer convenience and operational agility.

2. New directions of activity.

It is becoming increasingly difficult to make money through core financial activities, but against this backdrop, financial services firms are actively developing and automating new areas of activity. These include:

Integrating mobile wallets and cryptocurrencies for added convenience and security.

Using AI and big data for customized financial advice and products.

Enhancing compliance and reducing regulatory risk with technology.

Leveraging analytics and machine learning for better forecasting and risk management.

3. Digital modernization of financial services companies

This is the digital layer that enables work with external companies. Financial services companies aim to enhance customer satisfaction, optimize processes, and enable communication with other companies through digital transformation. Advancements in technology, process automation, and data analytics are necessary to foster creativity, streamline processes, and maintain competitiveness in a world going digital.

4. Development of remote financial services

Financial services firms in the IT scenario can provide a full range of financial services to those groups of clients who find it convenient to receive services remotely, such as online banking, virtual consultations, digital investment management, and automated financial planning, all while ensuring robust security measures and personalized support tailored to the needs of each client.

To sum up, the swift progress of information technology greatly augments financial services by boosting productivity, expanding the scope of clientele, and stimulating creativity. Financial services companies may provide more individualized, secure, and effective solutions, which will ultimately spur growth and competitiveness, by implementing trends like platformization, new activity directions, digital modernization, and remote services.