This is a solution of Financial Institutions And Transactions Assignment in which we discuss Developing business
In any discussion concerning the subject of innovation, the financial resources sector rarely comes to the minds of people. The underlying truth is that more than ever before, the banking industry is insistent on innovation at almost all levels. Donovan, (2012) informs that the current financial systems are in the run for creating innovative financial transactions. Even credit unions and the local community banks are in on the transformation despite their persistent problem of limited budgets and resources.
Currently, the financial transactions space is becoming a platform for innovative ideas in both practice and thoughts, particularly when striving to develop the experience of the customer in the market setting. Frame, Scot, and Lawrence, (2014) suggest that the modern financial institutions are strategizing their innovative end to their internal developments and customer-oriented strategies. The strategy then translates to the creation of innovative financial institutions and transactions respectively.On the side of transactions, customers desire secure, fast, flexible and easy forms. Innovative institutions are thus tasked with the role of monitoring the client’s lifecycle and attempt to optimize on customer engagement. This calls for the adoption of mechanisms to facilitate mobile-ready and real-time client approach that will forman all-round solution for efficient service delivery.
Regarding, the internal organizational developments, the key focus is on customer information availability. As Donovan, (2012), presents, the critical areas of concern, in this case, involve the client’s information access and the attached security. The possibility of allowing the customer to access his or her information easily, fast and with flexibility while at the same time protecting it from unwarranted access is emerging as a critical agenda requiring innovation. Additionally, integrating client’s information to his or her financial account is evolving as a significant challenge that bars the innovation in the financial industry. Nevertheless, recent emerging innovative ideas in the industry include the mobile payments (wallets), true virtual cards, Bluetooth LE technology, and wearable payment methods are striving to address the challenge. On a general perspective, the advancement in mobile payment systems, peer-to-peer lending, online equity funding, and Cryptocurrency side chaining are meaningful milestones that innovation has worked on to define the future of finance despite the client’s information system security and integration challenge.
In 1998, PayPay launched the first Digital Wallet, which worked to streamline e-commerce. Since then, the payment system has seen tremendous improvements that have leveled the economic competition playing field. Currently, patchy ventures activities arecompeting well with tech gurus like Google (Google Wallet) and Apple (Apple Pay)courtesy of the forward thinking of the global financial sector’s motive to see through the establishment of the next generation’s best way of money transfer. Much of the recent innovative mechanisms are striving toDollar banknotes and stock of coins on a graph
establish a payment system (True digital wallet) that is integrated into mobile devices thus complementing or rendering out-dated the checks, cash, and physical credit cards. An example of the recent product of the mechanism is the Venmo, which is growing as one of the popular methods of settling petty debts. Theapp is primarily convenient because of itsuse in conjunction with the world’s most used social media site (Facebook). The app hence satisfies the simplest consumer need that old and large financial institutions have never thought of.
Forward-thinking institutions are emerging with novel ideas on financial transactions. Donavan, (2012), gives the example of the emergence of the Peer-to-peer lending by Proper and Lending Club as one of the ideas that serves its market niche competitively. The growth of these institutions is marvelous that just in a span of a year the little venture had already brokered over $8 billion in loans.These advancements are spearheading the innovativeness of the financial sector in delivering efficient and reliable services to its customers. However, at the face of these inventions, there is always the challenge of adoption headwind. If it were not for these drawbacks, the financial sector could have considered several innovation pop-ups every year if not a month.
In conclusion, the financial sector has seen new growth in both its transactions and ventures over the last two decades. The digital wallets, peer-to-peer lending, true virtual cards, Bluetooth LE technology, and wearable payment methods are remarkable innovative milestones in the financial sectors.
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