What are three types of digital technology that can be used to assist in financial management?

Digital technology has grown into nearly every aspect of our lives. It helps people stay connected, provides easier access to public services, and allows for more entertainment options.

Financial institutions use emerging technologies like chatbots and experience portals to positively engage customers. They also use it to reduce costs and improve internal communication.

1. Financial Management

Financial management involves the allocation of resources, which is essential for a company. It aims to maximize profit and grow wealth for stakeholders through various methods. These include investment, budgeting, debt management, and financial forecasting.

FinTech has revolutionized financial management by providing newer and faster services. For example, blockchain-based infrastructure enables fast cross-border transactions and secures the data of users. It also allows for a decentralized finance (DeFi) ecosystem with smart contracts, a peer-to-peer network and non-fungible tokens (NFTs).

Another type of digital technology is artificial intelligence (AI), which helps institutions improve customer experience, automate processes, and reduce risks. Banks of all sizes are using AI for back-office processing, chatbots, risk assessment, and more. AI has helped reduce costs by reducing employee-hours and by enhancing client communication. It has also allowed banks to provide more personalized experiences for their customers. This includes services like bad credit loans and mobile payment solutions. It has also led to better data-driven decisions and increased income through accurate predictions.

2. Banking

Digital technology helps businesses elevate their operations through cutting-edge science and technology. Its applications are numerous, from improving customer service to reducing costs and increasing productivity. It is important to understand how digital technology works so you can use it effectively.

Banking is the business of accepting and safeguarding money owned by individuals and entities, and then advancing it as loans to other parties. Banks offer many other services including credit and debit cards, lockers, ATM facilities, money transfers and deposit and withdrawal accounts.

Mobile banking (m-banking) is a type of digital technology that allows people to access their bank account remotely through a smartphone or tablet. This service is available through SMS, unstructured supplementary service data (USSD) or through a dedicated bank application. M-banking cuts down on banks’ operational expenses and brings them closer to customers. It also enhances security with two-step OTP verification and biometric login. In addition, it helps to widen the reach of banks and increase customer satisfaction.

3. Education

Education is a system through which children are taught the fundamental academic knowledge, learning skills, and cultural norms of their society. It is an essential trail in ensuring a person’s future. Benjamin Franklin once quoted that “an investment in education returns the best interest.”

There are various definitions of education, some preoccupied with what it is to have education and others with its intended outcomes. One is that of the socialization model, which understands education as the conscious effort to equip young people with facts and understandings necessary for functioning in a specific culture.

Another interpretation of education is that it encourages empathy in students, and that this leads to accomplished and fulfilled individuals. It is also seen as a way to ensure that future generations are equipped to face the challenges of the 21st century. This is often viewed as the most important goal of education. Educators should use digital technology to assist in this endeavor.

4. Entertainment

Digital technology is the wave of the future that businesses can’t afford to ignore any longer. It can bring in revenue, automate processes, boost productivity and improve customer engagement. It can also help companies expand their brand recognition and gain a competitive edge in the marketplace.

There are many forms of digital technology. Some are visual, such as streaming movies and TV services and virtual reality experiences. Others are audio, such as music streaming services and podcasts. Some are a combination of both, such as YouTube and social media platforms.

Other forms of digital technology include websites and eCommerce stores. These tools allow companies to promote their products and services at a low cost and reach a larger audience. They can also assist customers through their buying journey by providing them with helpful information and resources. They can also facilitate conversations with customers and resolve complaints quickly. These benefits can result in improved customer satisfaction and reduced business costs.