Finance Management is transforming and technology is a big cause
Transformation is growing in an effective and efficient manner.
To begin with the 21st-century terminologies and software there has been tremendous growth in terms of human knowledge and capabilities as well in terms of technology.
From starting with the golden-era of a verbal agreement to writing and further maintaining books and ledgers for future reference has been a daunting task for the people working for it.
To talk about the golden-era in the 19th century when the concept of book-keeping was newly introduced and adapted, it was all paper trail everything to be written and stored for future
Reference till today in India historic book-keeping system is followed by many small scale business owners because of technological disadvantage.
But for the rest of them with the up-gradation in the interest and theoretical knowledge lead to growth in recording system not just in terms of change in software use but also in terms
Of recording the concepts like different ways of recording a balance sheet i.e.
horizontal and vertical or further introduction to different footnotes or petty accounts for ease of working and understanding of core financials, from taking different paper records to having electronic media.
If we look into another interesting area in the Finance industry that has changed drastically would be the Stock Market.
The early age stock market was nothing but a few men trading under the tree in terms of verbal agreement which was then followed by regulations and traded at a destined place known as the
Bombay Stock Exchange (BSE) still the mode of trading was dependent on shouting
And written paper trails but it further opened gates for people interested in being a part of the market.
But after 20 years with the increase in misleading documents and scams being carried on another exchange was introduced National Stock Exchange (NSE) which introduced dematerialized electronic exchange in India, not only did this reduce the number of defaults but also helped shareholders to have their security in electronic format.
To talk further about the current situation with the increase in security options, availability to trade, and broker options technological development has just resulted in creating a mode
Of trading for people to participate from wherever and whenever and however they want.
We live in an era of technology and now people are upgrading themselves to compete with the technology created by them.
The human mind today is destined to be as efficient and competent as a machine, introduction of technology in every domain has resulted in the development of fintech which refers to financial management which is combined with technologies,
With fintech innovations, firms can better meet customer needs and expectations. With clear benefits, fintech is quickly changing the landscape of investment and financial management. Advancement includes the use of robot-advisers, big data, AI, and machine learning to evaluate investment opportunities, optimize portfolios, and mitigate risks.
In the area of financial recordkeeping, blockchain and distributed ledger technology are creating new ways to record, track, and store financial assets.
Investors of all ages and from all regions want more technology applied to investing, and trust in technology increases trust in a financial firm and new blockchain technology holds the promise of creating more trust in the system.
From the transactions being made on cash to having a cashless economy to growing on taking different sites for loans and credit payments and redeeming points to be used in different areas. Such development has made humankind be more dependent on what we today call a return.
Returns like points, membership cards, offers, discounts, and further such things instigate humans to use online payment methods today instead of using the old and golden era money.
Technology has not just made human minds to be developed but also has resulted in ease in working for the business. The software comes in handy for companies to estimate their stability, their liquidity, and credibility in the market, their willingness to take risks and further with the use of business valuation even the predictions of working of the company and most importantly the leverage ratio and the beta of the company which helps consumers, investors, banks to judge the health of the company and decide whether to have a relation with it or not.
Not only just technology helps the business to know about how well they are performing from the competitors but it also helps to use statistical macro-economic trend to figure out what could be further expansion plan and how will the business perform under economic stress.
But if I were to say of a recent situation where the use of technology has helped every big or small enterprise, every small business owner then the coronavirus outbreak has been merciful because of development in technological factors in countries,
Because of which the companies didn’t have to stop functioning their work instead new ways started to rise with the panic.
This pandemic not only taught people to be more trained in technological development but also gave them time to think, analyze and understand the importance of fiscal responsibility at personal and professional levels.
But what the future awaits for us is interesting the public cloud will be dominating the nation and will result in a significant shift towards cloud-based financial management, public-ledger will go on to becoming an integral part of institutional technological development because of the advancement, competition, the growth in unique ideas tapping on the un-foreseen market might come in handy for the people but everything in financial management can be handled or adjusted with technology until supported by statistical data and numbers to show, but the economic trends and the growth and credibility factors of a company is solely In terms of its qualitative data which will need humans to use their brains efficiently to work and forecast and extrapolate the data which can only be done if humans don’t stop to use and work their brain because of the newfound dependency on technological factors and it’s growth development in the industry so worked for.