Queuing up in front of the bank counter, waiting to handle business. When going out to make purchases, you must carry cash and bank cards with you. When applying for a loan, you need to submit paper materials repeatedly - these scenes are not unfamiliar to many people.
But now, mobile banking has become popular, mobile payments are also popular, and smart investment advisors are also becoming popular. The popularity of these technological financial tools is quietly changing the way people deal with finance.
The penetration of technology and finance has caused every aspect of the traditional financial industry to undergo profound changes. From the perspective of service models and payment experience, it spans the scope of risk assessment and also involves the field of product innovation.
This article will analyze the logic behind this impact from four different dimensions, thereby helping readers clearly understand the real changes that are currently taking place in the financial industry.
Service model: from branch offices to mobile services
In the past, when you went to the bank to handle business, it took a lot of time just to get a number and queue up. If you encountered complicated business such as opening an account or getting a loan, you might have to run several times.
Traditional finance relies heavily on physical outlets. Customers have to go to the site in person. The process involves filling in paper documents and manual review, which is time-consuming and laborious.
However, at this moment, technological finance relies on the Internet and mobile communication technology to migrate financial services online.
Turn on mobile banking, and transfers and remittances will arrive in your account within a few minutes; apply for a loan on the Internet financial platform, and the system will approve it on its own. If the speed is fast, the loan can be disbursed on the same day.
This transformation is not simply to copy offline business to online, but to redefine the accessibility of services.
For those working in the office, they can complete financial subscription operations and other matters during their lunch break; and for those residents living in remote areas, the financial services they can enjoy will no longer be restricted by the distribution of outlets.
A convenient and efficient experience directly shakes the foundation of traditional financial services with physical branches as the core.
Payment and settlement: from cash card to scan
It is inconvenient to make change with cash, it is inconvenient to carry bank cards, and the card swiping machines may malfunction. These pain points when making payments have troubled many people.
Traditional payment and settlement methods are not only slow. Inter-bank transactions often have to wait for two or three days. The same is true for cross-regional transactions. Cross-border remittances take more than a week.
Technological finance spawned Third party payment and mobile payment This completely changed the situation.
Nowadays, consumers only need to take out their mobile phones and scan the QR code to complete the payment, and the funds will be received in seconds.
From paying for pancakes at breakfast shops, to shopping settlements and payments in large shopping malls, from paying water and electricity bills, to paying for goods between companies, this payment method has penetrated into the capillaries of daily life.
For those who control small and micro enterprises, mobile payment makes it much easier to obtain money, and it can also rely on the flow generated during the transaction process to accumulate data with credit value, thereby creating corresponding prerequisites for subsequent financing activities.
The improvement in payment efficiency has also greatly accelerated the flow of funds throughout society.
Risk control management: from relying on experience to using data
During risk assessment by traditional financial institutions, they mainly rely on paper information submitted by customers and historical data accumulated internally, and the experience and judgment of credit managers often play a key role.
This method has a single dimension of information and lags in updates, making it difficult to detect potential risks in a timely manner.
After the introduction of big data technology, science and technology finance also introduced artificial intelligence technology. Since then, the risk control logic has undergone fundamental changes accordingly.
The system can integrate numerous customer data in real-time, including consumption records, social behaviors, e-commerce transactions, public utility payments, and other dimensions, and then use algorithm models to dynamically evaluate credit status and repayment ability.
For a certain user, when there are abnormal fluctuations in recent consumption behavior, the model can quickly identify and issue an early warning to assist the organization to take appropriate measures in advance.
This shift is from "ex post judgment" to "real-time monitoring", which makes risk identification more accurate and allows more people who originally lacked traditional credit records to have the opportunity to obtain financial services.
Product innovation: from standardization to personalization
Traditional financial products such as time deposits and standard mortgages are often fixed in terms of terms, uniform in term, and have a relatively single income model. As a result, it is difficult to meet the differentiated needs of different groups of people.
With technological finance supported by a flexible technical architecture, it has the ability to respond quickly to market changes and launch a variety of innovative products.
For example, robo-advisors can generate personalized asset allocation plans based on the user's age, income, and risk preference; the exploration of digital currencies related to blockchain has given new possibilities for cross-border payments and asset transactions.
These products have very novel functions and break the rigid structure of traditional financial products, giving investors more choices.
In terms of the speed of product iteration, technological financial platforms often use weeks as the unit of time to update, and sometimes even use the day as the unit of update. However, when traditional financial institutions respond to such competitive situations, their product innovation pace shows a relatively slow trend.
Gradually moving from physical outlets to online services, from cash payment to instant payment by scanning QR codes, from manual verification to intelligent risk control, the changes brought about by technological finance are not simply the superposition of technology, but the reconstruction of the underlying financial logic.
Speaking to ordinary users, this shows that financial services have become more convenient, more transparent, and more in line with personal needs; as far as traditional financial institutions are concerned, embracing digitalization, improving service experience, and strengthening technology research and development is no longer a matter of choice, but a key issue related to survival.
In the future, as technologies such as artificial intelligence and blockchain continue to mature, the boundaries between technology and traditional finance may become further blurred. However, one thing is clear, that is, those who truly create value for users will be able to stabilize their position in the change.
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