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How Has Technology Changed The World Of Finance



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The world of finance is a fast-paced place and technology has changed its face in a number of ways. Although there are challenges ahead in terms of how improvements can be made without hurting or disadvantaging anyone, for now, it is still a pretty good time to be involved in the financial industry. This article takes a look at some of the ways that technology has changed finance for the better.


The blockchain is a big talking point in the finance world at present, largely due to the way that it allows digital information to be distributed without being copied. That means that once data has been recorded on a particular block, there are no ways for it to be changed or removed without someone else noticing.

This technology gets even more interesting when combined with NFTs (non-fungible tokens), which are items of digital real estate that cannot be bought or sold in the same way as bitcoin. For example, an individual might purchase a beautiful piece of artwork on jungle or another marketplace and then send it to somebody else using just one transaction. This property of blockchain technology enables people to create unique items of value without having to involve a third party which, in turn, can lead to lower transaction fees and faster payments.

E-Commerce And Mobile Payment Systems

As the world dives deeper into the digital age, it is not surprising to find that e-commerce and mobile transaction systems are now a normal part of everyday life. For instance, payment services such as PayPal allow users to send and receive money using their smartphones without having to contact their banks at all. This has made payments simple and easy to carry out, removing the need for long queues when it comes to paying bills or withdrawing cash.

As well as PayPal, credit or debit cards are also often used online in order to make purchases of any kind. This includes the likes of Apple Pay, which enables users to use their devices in order to pay for items at a touch of a button by holding their phones close to payment terminals.

To illustrate how this works in practice, consider the iPhone user who has an online purchase delivered to their home. Without using any apps at all, they simply touch their phone to the payment terminal (with an NFC chip installed), enter their four-digit code and the payment is made. The phone then buzzes with confirmation that it is ready for another transaction if required or can be taken away.

Money-Making Apps

It’s no secret that technology has highly impacted every aspect of our day-to-day lives. One of those aspects is the ability to earn money online without leaving the comfort of your home. There are many options on how you can achieve that from freelancing and tutoring to participating in online surveys. 

Money-making apps have become increasingly popular in the last few years, and they are another option for how you can earn online without much effort. Some of these apps will require you to do various tasks in order to earn money, while others can become a steady stream of passive income. The passive income app Honeygain is probably the most popular in this category since it is easy to use and user-friendly. You will earn passive income on this app by sharing your unused internet bandwidth. 

Money-making apps can suit everyone’s needs, whether you want a more hands-on approach or whether you would like to earn money in your sleep. All you have to do is find the apps that would suit you the best. 

P2P Lending

Peer-to-peer (or P2P) lending is a great example of how technology can be used to change the world of finance for the better. This type of loan allows people in need of financial assistance to borrow money directly from individuals, rather than having to use banks or other types of lenders.

This model of lending was made popular by companies such as Zopa, who use their extensive experience in terms of credit checks and underwriting to match people with the loans that they are most likely to pay back. This has meant that borrowers can get lower interest rates on their loans while investors receive a better return than they might normally be able to achieve elsewhere.

While peer-to-peer lending is not entirely risk-free, it does allow people who need finance to access it more easily, which can only be a good thing. And with investors having the opportunity to make good returns on their cash too, this method of borrowing and lending certainly seems like something that should continue to develop over the next few years.

Online Investment Options

Although investing is never an easy thing, thanks to technology it can be made simpler than ever before when it comes to the finance sector. For instance, it is now possible to carry out stock-market transactions from a mobile device. This means that no matter where someone is or what they are doing, they can still be able to monitor their investments and make changes as and when required. Furthermore, there are lots of apps available which allow people to do everything from choosing stocks and shares to building portfolios and trying their hand at day trading.

To illustrate how technology has changed the world of finance, consider the online investment platform that is known as Betterment. According to CEO Jon Stein, this allows clients to invest money with confidence. Betterment is fully automated and continuously diversifies investments across index funds while monitoring market movements. What this essentially means is that everything is done for users by an algorithm that makes the right choices, investing money in suitable index funds while removing any need for cash injections.

Social Networking

In recent years, social networking has impacted almost every aspect of the world, and the finance industry is no exception.

This is especially clear when looking at the way people bank. Rather than going into a branch and sitting down with a member of staff, many have started to turn to social media for advice and support when it comes to their finances. Sites such as Twitter and Facebook enable users to share experiences of certain banks or financial institutions, which can help others in making informed purchasing decisions.

In addition to this, social networking sites have even been used as a way of finding staff. For instance, Barclays hosts what it calls ‘Facebook Fridays’ which allow the bank’s employees to spend an hour looking for potential job applicants on their preferred site. While there is no guarantee that this will lead to a hire, it certainly doesn’t do any harm and could even prove to be a very cost-effective method.

Virtual Reality

As with many industries, virtual reality (VR) is expected to make its mark on the world of finance over the next few years. Long gone are the days when people were forced to go into a bank or brokerage firm and discuss their financial future with a stranger. Instead, they can now make all of their inquiries online and even interact with an avatar in order to get personalized advice about investments and how much they should put away each month for their retirement.

Ultimately, it is envisaged that such financial applications of VR will lead to better advice and increased returns.


Bitcoin is arguably the most well-known cryptocurrency around at the moment, but it certainly isn’t the only one on offer. Since Satoshi Nakamoto first developed Bitcoin in 2009, there have been many others introduced and they come with different strengths.

For example, Ethereum is designed to do everything that Bitcoin can in addition to allowing developers to build decentralized applications on top of its blockchain. Meanwhile, Ripple works in a slightly different way by using an open ledger in order to allow for cross-border payments between banks.

By conducting transactions in this manner, it is possible for financial institutions to save time and money, which they have to pass on to their customers in the form of lower transaction fees.

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Nowadays, the finance industry is very different from what it was even a few years ago. This can be seen most evidently through the use of social media, virtual reality, and cryptocurrency, NFTs, etc. Such developments are expected to continue bearing fruit in the future, making this an exciting time for all those who are plugged into the world of finance.

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