Industry 4.0 also referred to as the Fourth Industrial Revolution, the name of a current trend, and the evolution of automating processes with a whole lot of the Internet world. Since this evolution has impacted globally, it will gradually reach every large and small-scale industry.
From manufacturing and other sectors of the global industry, industry 4.0 has also impacted the financial services significantly. Precisely referred to as I-4, its impact is very much prevalent from online payments, digital loans, plastic money, cryptocurrency, forex trading, and other financial services as well.
At the same time, a transformed digital future is emerging as a certainty in many industries. This industrial revolution has unfurled its wings over all industries to impact them positively.
Let’s look into the impact of industry 4.0 on financial services.
- Companies fostering agility and flexibility are key to business’s revenue and profit requiring changes in finance with Industry 4.0 technologies bringing about efficiencies and increased profits as well.
- The fastest and the cheapest financial transactions globally with the introduction of advanced financial methodologies.
- Increased use of robotics and artificial intelligence in the financial sector
- With automated operations, there will be more ‘touchless transactions’ with an increase in the business insights and services to deliver greater value.
- Finance applications and microservices could challenge traditional enterprise resource planning, and in response, large vendors might consolidate platform solutions.
- The emergence of new business domains such as FinTech, payment gateways, etc. with the help of advanced financial technologies.
- The arrival of IoT and cyber-physical systems in the financial sector provides businesses with better control and detailed insight into the costs of producing goods and services.
- Auditing has become much easier and effortless for organizations as you can monitor transactions actively, detect financial frauds, minimize the damage, etc. by accessing real-time data instantly.
As famously said in the financial world, ‘With high return comes high risk.’
Though the connectivity of devices to the internet provides a plethora of benefits but poses some amount of threat too. Financial services are hugely impacted by industry 4.0 with information technology at its perfect place. Industry 4.0 has made a highly desirable impact on the global economy as a whole with the financial services sector as the major gainer of all.