The way the world has evolved due to digital transformation is mind-blowing. Technology has revolutionized the way we work. In finance, technology has brought a change that made people’s life easier.
For example, earlier, you needed to stand in long queues and fill out long application forms to receive a loan, but with the digital transformation in loans, the whole process has become easy.
Nowadays, you can even get a fast e-transfer loan in Canada from an online loan lender without stepping out of your home and waiting days to get approval on your loan application. In this article, we’ll have a closer look at the changes brought by digital transformation in the finance and loan industry.
What is Digital Transformation?
Digital transformation refers to incorporating digital technologies to meet new or modify current business models to meet the new changes in the market. This refers to adopting a new business model, using new technology, and adopting new ways to promote your business.
Digital Transformation in Finance
Finance is a wider term used for numerous things. Here let’s discuss some of the most popular of these terms.
Investments
- Currently, many people are aware of investments, but only half of the people ever invest. With the digital revolution, investing has become a lot easier and handier.
- Earlier to invest, people had to visit the stock exchanges and choose the stocks they wanted to buy. And the stocks were a piece of paper with some monetary value and a part of the company’s stocks in the buyer’s name.
- This was a long process and also included a major risk of stealing or misplacement of papers, which was later changed with the introduction of an online buying and selling mode where people create a dematerialized account to trade shares electronically, hence the name Demat account. This made buying and selling shares safe and quick.
Loans
- Loans have been a long part of the history of mankind. People have been taking loans for centuries. But only recently have we successfully established a proper way of providing loans. And with the help of digital transformation, providing loans is extremely easy.
- One such great example of a loan is fast e-transfer loans in Canada. These loans are provided in a single day, contrary to the belief that loans take a couple of days to a week to be processed.
- Online lenders provide fast e-transfer loans because they use a new technology called the IBV verification that allows them to look inside the applicant’s bank accounts and verify their identity.
- This process can be completed within a few minutes, saving a lot of time from faxing documents and verifying the accounts.
Banking
- Do you use mobile banking applications like Gpay, PayPal, or any bank’s personal mobile application? These are the modern banking methods that many people use nowadays for online transactions.
- Just a decade ago, it was essential for people to visit a bank just to get the amount balance, but now, you can get a whole loan or apply for a new credit or debit card by sitting at your home. This was possible due to the introduction of technology into the banking system.
Money transfer
- Transferring money has never been easier; with modern banking facilities and digital transformation, transferring money has become a lot more easier.
- Now with modern facilities, you can easily wire money from one place to another. This has made the lives of many people a lot easier. Because many people from the farthest corners of the world come to Canada for work, just to provide a better life for their families.
- With digital transformation, such people can now easily send money to their homes and give a better life to their families.
Future of Finance
The future is always bright as long as we opt for sustainable ways, and the finance industry is no exception. Every year there will be new companies introducing new ways to make life easier. Just like online loan lenders came because there was a loophole in the earlier loan model which resulted in delays in providing loans. This was especially problematic for people who required an immediate loan.
So, with the help of online loan lenders, people can now take fast e-transfer loans in Canada and receive their loans on the same day. This has filled that loophole and made it easy for people to have a reliable loan lender on which they can rely even in times of difficulty.
In similar ways, the future is still unknown but is surely bright. One such technology is called the blockchain system. This is one of the most modern ways of financing. It leads to increased security and a safer mode of transaction. But the best part is that it eliminates the third party.
For example, when you have to make a transaction, let’s say a wired transaction, you need to have a destination – the payee’s address, and a third party, such as a bank. So, here you will initiate a transaction that will go to the bank, and then the payment will be released and credited to the third-party merchant. This is a standard payment process.
But with the introduction of a blockchain facility, you will totally eliminate the third party, and the transaction will remain between you and the payee. In the blockchain, you will have a personal account. It will be like online storage with only one key.
Only you have access to this storage; it will be stored in an online blockchain server and when you have to make a payment, simply get the address of the person or merchant you want to pay and initiate the transaction.
The money will be debited from your account and credited to the other. This transaction is completely secure as it doesn’t involve any third party, thus lowering the risk of getting hacked or getting malware.
Blockchain is the new technology that will make the world into a new era. However, the only problem currently we face is that blockchain uses a tremendous amount of energy.
For example, Bitcoin, a popular crypt currency, uses blockchain, which annually consumes 150 terawatts of energy, which is more than the electricity consumption by the entire population of Argentina.
But soon, new ways and ideas will bear in the industry that will make energy consumption more sustainable and efficient. And many financial systems, including online loan lenders providing fast e-transfer loans in Canada, will be able to provide quick loans to people using blockchain.