Almost half way through 2019 and moving on to 2020, it can be said without any doubt or debate that technology will reign supreme in all sectors of the business world. However, as it is notable by the common current trends, the finance and money lending industry will be the most affected ones with the extensive use of technology.
The job of the technology driven influencers in 2020 will be even more important to enable all money lending sources, online such as https://libertylending.com and others or offline such as any traditional banks or credit unions, to stay competitive. There is a clear sign that that technology has affected financial services in a number of ways and most of these are beneficial for the businesses, the consumers as well as the economy on the whole.
However, to stay with the competition and upgraded is not an easy task.
- It requires much more involvement and commitment than simply installing a new technology or software in the existing system.
- It requires precision and extensive knowledge in the implementation and use of these latest tools and software.
- It is also required to ensure that the right financial products are designed as per the requirement and demand of the consumers and released in the market at the right time.
When this is done, the money lenders will be able to make the best use of the technology available and make sure that its serves the purposes of both them and the consumers as well. They will be able to gain more profits through their services and the consumers will get just the exact financial product they want to meet their finance needs right on time.
The key themes to follow:
It is required by the finance and money lending industry to follow the key themes. For this the IT executives are believed to require addressing the common issues that are associated in money lending. They must also begin their strategic planning right now to stay competitive in 2020 and beyond.
Typically, there are ten themes to follow and the list includes:
- The rise of Financial Technology services which is expected to drive this new business model in the following years. This will not only make the services better but will also make the financial products more easily accessible for the consumers.
- The sharing economy will be now more embedded in almost every part of the financial system which once again will affect the financial services in a positive way.
- There will also be a rise in the use of Blockchain technology seen this year and in the years to come which is expected to shake things up.
- Digital finance and money lending service will become the mainstream of this specific service industry which will shorten and expedite the loaning process needing minimal documentation and authentication.
- This year ‘Customer Intelligence’ will become one of the most important predictors of the growth in revenue and profitability in the finance sector.
- There is also a new wave expected to take over with the advances made in in robotics and AI. This will facilitate re-shoring and localization of financial services.
- Another important change that is expected to take over in 2019 and beyond is the use of public cloud. This will become the most dominant infrastructure model in the finance industry.
- Facing and overcoming the cyber security risks will become one of the topmost concerns of the finance and money lending industry with more and more online money lending service providers coming up.
With all these technology driven innovation used by the financial institutions in 2019 and beyond, the regulators of this key sector will also turn towards technology as well. They will ensure that with the use of these different themes that have different implications and use does not affect the financial services companies in adverse ways. Instead, they will make sure that it helps their leadership teams in a great and far reaching way.
The effects of technology:
These specific themes and technology will have a strong and a disproportionate effect on the financial industry when it comes to its given geography, industry segment and set of customers. These will also provide the money lending and financial industry with a lot of opportunities provided if their thinking IT executives are well prepared and well versed with this technology to get ahead.
For example, when it comes to the robotics movement coming up the IT executives will have different options to choose from such as:
- To lead the charge with proper listening capabilities
- To be a fast follower of the agile architecture or
- To watch and learn from others when they take the most advantage of such generational shift.
This poses a new set of challenge for the It executives regarding the use of these themes. This set of challenge includes:
- Understanding these key themes
- Prepare them to use them and
- Seeing how these themes can provide a competitive advantage.
They will need to have their priorities for facing 2020 well set and organized so that they can meet with the increasing pace of change that is showing no signs of slowing down.
Role of the IT organizations:
The role and demand of the IT organizations by the financial institutions have therefore become more significant now than even before.
- These IT organizations will help the finance and money lending institutions to make sure that they are well positioned to succeed in 2019 and beyond.
- These organizations will be knowledgeable about the macroeconomic trends that are now sweeping the finance world as well as the technology driven influences that are pummeling this industry.
They will ensure that the financial institutions follow the best approaches to move forward in 2019 and beyond.
In short, they will be the best answer to combine all tactical short term actions with the long term initiatives. This will tie them with a larger and more strategic vision. This in turn will help the modern financial services providers as well as the online money lenders to succeed in 2010 and beyond.