As the Banking industry moves into a digital direction, banks and financial institutions will continue to be offered new ways of operating their everyday financial responsibilities through the development of new technology. Fintech companies have already started offering alternative methods of completing online banking and payment solutions, as the digital age is seeing companies place the user in the centre of their decision-making processes more than ever before, as the competitiveness in attracting the customer’s attention has increased significantly due to the widespread accessibility of the internet which has become the ultimate intermediary.
The Importance of Technology in Modern Banking
Fintech companies are promising services which are faster, easier and safer, as Blockchain ledger technology provides transactions which are transparent and easily traced, whilst AI technology in Fintech is using machine learning to automatically learn patterns of financial affairs to predict future financial results based on trends and past and current market data.
That being said, banks and financial institutions which do not adopt and implement such technology are destined to loose their effectiveness, as Fintech companies are competing with one another based on which is able to provide the most straightforward, user-oriented approach in a safe and secure digital environment. Today, a bank is defined even more so by its ability to keep up with the digital innovations of our time, making the need for them to provide efficient digital services a necessity in order to advance. Tech career opportunities in the Financial Services in Malta are on the rise, particularly in software developer careers in which top talent is being recruited to develop high-quality online service solutions for banks and financial institutions. This is no surprise given the surge in Finance and Technology recruitment opportunities in Malta throughout various industries.
One of the latest online payment services which has been introduced within this sector and is being significantly used worldwide is the electronic signature, which has become a key component in providing a trustworthy and secure method for the client and for the bank in question. As defined by the European Commission, an electronic signature is an electronic indication of a person’s decision to agree to the content or data displayed on a document in acceptance to the terms in that document. Below, we take look at the benefits electronic signatures bring to online banking for companies within the Fintech sector.
Electronic signatures offer a far safer process and can be traced instantly when compared to physical documents and contracts which are at a risk of being misplaced or stolen. Through the use of encryption technology users are securely identified with their profiles stored safely for future use. The electronic signature is a suitable tool for online banking since it contributes to a higher level of security in the online transactions without losing speed throughout the process, therefore making it a favourable option for Fintech companies.
Transparency is a major benefit of electronic signatures since all transaction information is recorded, and what is more is that banks and financial institutions may see where the customer is in the signing process to prompt reminders when necessary or to take legal action should the customer not oblige. In addition, since this process is being carried out online, it makes it a relatively fast one - customers need not visit a branch of the bank to settle any payment or sign any document, instead being able to do so form wherever they please, provided that they have a stable internet connection. Therefore, negotiations can be done faster since each step of the process can be authenticated and easily accessed by all parties involved.
The fact that such banking and payment processes are being greatly simplified means that customers will be more willing to take on more loans and transfers digitally, and in the span of a single year, a company can save a considerable amount of money on paper, printing and mailing costs which could be used elsewhere. Besides this, electronic signatures also reduce the financial impact of human error which can slow down the process or bring about unnecessary, costly problems. Another benefit in this regard would be the easier method of storing contract data - the time consuming and costly procedure of managing and storing physical contracts would be replaced by the simpler and more secure method of storing them on the cloud.
Improving Customer Loyalty
What is more is that with electronic signatures, members of an organisation can spend more time forming relationships with partners, clients and customers by doing away with the technical and administrative upfront work and allowing more opportunity to engage with one another on more interesting or important matters. In addition, by providing customers with the ability to choose for themselves how they will complete their transaction with a bank or financial institution, whether digitally or at a branch, instills a freedom in them which is much appreciated and contributes to a satisfactory experience.
To conclude, the electronic signature is yet another step towards a digital future in business, as this technology creates a favourable process of user identification and facilitates the execution of online transactions and contracts in a more efficient, secure and cost-friendly way, contributing to further job opportunities in technology within the Fintech industry in the process.
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