3 ways the internet has impacted the finance sector

by Melissa W. Content Writer

Since the internet was invented, every sector in the world has been affected. The effects of the internet technology are far spread and are visible to everyone even if they don’t realize it. The finance sector is one of the biggest sectors in the world; in fact, it is the biggest since everything runs on money and monetary applications.

The sector has seen its own share of changes and development due to the internet influence. Here are some few ways that are evident of this influence so far, there are many but this are just the basic once.

Online transactions

Buying and selling staff involves use of money which is physical in nature. Traditionally, you were to withdraw money and carry it physically to the shop to pay for a product or a service. This method takes time and can be quite costly too considering transactions and travelling charges. It has been working well and has its own advantages, like security, but it does not just well with technology.

The internet makes online payment possible and improves the speed of transaction. Online shops have adopted this method and it has been found to be quite efficient. If you wanted a computer from online shops for example, you can use services like macbook payments to secure your item. Such possibilities have come as a result of improved security for internet users.

Blockchain technology

Blockchain technology is one of the newest inventions in the world today in terms of applicability. It has been around for quite awhile but it was not used for many reasons. Many finance institution depend on centralized system of operation that ensures consensus for any transaction. This means that, there is a central body, in this case central banks that control transactions.

Blockchain on the other hand is a decentralized system that has been in cooperated into finance through cryptocurrency. Bitcoin for example, is a form of digital currency that is applicable specifically for online uses. However, the technology keeps improving and there is possibility of the currency being applicable for offline use.

Mobile money

Many banks have adopted the mobile money features that enable them to install special applications that help them access their banks from the balm of their hands. With and internet connection, you can simply log into the bank applications and transfer funds to and from the accounts. These features have made dealing with banks quite easy and reduced queues at the banking halls.