The Effect of Advancing IT on Financial Institutes

Industry: Banking and Finance        Added By: 247Compliance        Posted On: Aug. 27, 2019

blog_img

Gone are the days when every financial activity required paperwork to maintain security and records to handle customer data for better security. With the proliferation in the new technologies, IT sectors have bloomed and aggravated their functionalities in other industries as well, which brings us to one of the vastly affected and worked-on industry- the Banking and Finance. As with the increase in the vigorous amount of data transfers in today's world, data security breaches are also meddling with the privacy and safety of the data. Almost every day, we get to see one or the other flashy headlines unveiling major cyber breaches steering their way to the reputed financial firms and the banks going bankrupt. 

However, the augmenting prudent software technologies have also made the production of these financial institutes smooth and provided an effective solution to tackle the security breaches with its technological headways. Apart from this, the recent progress in managing the quality of the software, the banking industries have adopted and adhered to perpetuate the spirit and standard of the work. This article discusses how the advancements of the IT industries affect the financial firms and the impact that it has on the market.

The electronic data transfer has reduced many overheads on the financial transactions that had to struggle to make these heavy transactions possible in a conventional way. Be it a customer-oriented transaction or a vendor transaction, the developing software has made our lives every bit easier, with transactions taking place within a very few seconds. With the contrivance of cloud-based computing, financial firms have now exhumed a reliable way to deposit heavy data on the cloud rather than on the systems, as financial firms generally come across a lot of heavy data daily. The major financial institutions such as credit unions, internet banks, brokerage firms, insurance companies, etc., adhere to the usance of the software in their everyday work. 

Implementation of DevOps and Agile software have also encouraged the financial institutions to adopt user-friendly and handy features of mobile apps, which not only involves easy computing instantly, but also, enumerates major functionalities that deal with the critical privacy of the user such as the bank details, passcode, phone number, etc., and provide an effective way to deal with private transactions at ease. The preferment of these technologies has also enhanced the speed of the transaction, providing negligible to zero complications in the operational functionalities of the financial industries and making the operation process much easier. The other advancements that have come into the picture with the improved technology are the automation tasks taking place in almost every propulsion of the financial software. Some of the improved advanced features that have become the backbone of the financial industries are real-time monitoring and incident response systems, as well as collaboration platforms.

The Software Development Life Cycle, which is short for SDLC, is one of the crucial development models that is used by almost all the software designing firms to monitor, analyze, and modify changes at various phases of the software development process. The SDLC model keeps a strong grasp on tracing the changes in the entire software process and proves to be one of the key features in determining how the software is going to perform in the future. With this, it becomes easier to carry out rigorous optimum solutions to eliminate the risk that might erupt in the future, taking into the account, the way the financial firm works. Eliminating risks in the first stage, thus, reduce the problem of continuous debugging of the software time and again, and make the software run conveniently. The connotation of the advancing IT has proven to expand the scope of flexibility in the banking industry, with millions of financial firms now relying on the software for their futuristic business evaluation.