The Importance of Technology in Finance & Banking

The digital age has been creeping into every living activity, with many products bringing increasing convenience to mankind. From commodity manufacturing to agriculture, health, education ... Have you ever wondered if there is a profession or a field that doesn't require technology? Whether we love it or not, we must admit that productivity and job efficiency for most professions are influenced by digitization.


However, before thinking too deeply about the financial industry or the banking sector, just think about the actions that we usually do every day: creative payment services, electric wallets. electronic banking, mobile banking, online savings book, loan service - application payment ... Well, let's simplify the macro image before we get into the importance of Technology in Finance & Banking.


Financial technology and its surrounding issues

FSB (2019) has researched the finance-banking industry. In which, 9 technology trends supporting the innovation today include: Cloud computing technology; Robot automation process; Outsourced customer care services; Advanced analysis; Number conversion; Artificial intelligence; Smart contract; Internet of Things; Blockchain technology.


From these new trends, we now have a new type of financial technology called "Disruptive Financial Technology" - New fintech companies that compete directly with suppliers. Traditional financial services by offering new services and products, directly competing with the long-standing “Traditional Financial Technology”.


Fintech is increasingly overwhelming

Full of newness and potential, the new term ‘Fintech’ is being interested in a lot of investors and the financial world. However, the meaning behind this name is not as difficult to understand as other economic and financial terms. Generally, 'Fintech' is the combination of ‘financial’ and ‘technology’. According to PWC, this means a developmental crossover between two factors of finance and technology, combined to compete with "traditional finance" in providing financial services to customers.


One way or another, after all, the ultimate mission of technology is to bring services closer to customers, bringing convenience and comfort to customers when accessing financial services. main, bank. A typical example of the popularity of technology in today's era is using mobile phones to make payments, transfer money, take out loans, set up a savings account ... or even track debt. online, track monetary, financial ... anywhere and anytime connected to the Internet.


Fintech, also known as another cool name "Disruptors". Fintech or Disruptor refers to fast-growing companies, often start-ups that focus on a specific technology or process of innovation in everything from mobile payment solutions to insurance. Besides, they also hit some of the most lucrative elements of the financial services value chain.


For the finance banking sector, the 'wave' of Fintech has gradually created a rapidly changing regulatory market, bringing with it advancements in technology, data, and more. Experts say that the present time is the right time for incumbent banks to grasp the trend and change themselves, creating a premise for their own new development and bringing about high value for use to customers.


Digital factor gradually dominates the market

Only developing in the last two decades, however, e-Commerce has quickly occupied an important position for most businesses. With e-Commerce, sellers and buyers can easily showcase and select products, purchase and sell on mobile services or over the Internet. e-Commerce is based on technologies such as mobile commerce, electronic money transfer, supply chain management, Internet marketing, online transaction processing, electronic data exchange (EDI), and inventory management system, and automatic data collection system.


Also according to PWC, today's "digital" wave has something in common: separate budgets, groups, and resources to drive digital programming. The adoption of digital has helped extend from simple customer experiences to big data and analyzing potential information or risk for upcoming plans. Mining 'money' from collected data is one of Digitalization's strengths. Now, are there any businesses that do not need money? Are there any businesses that do not need to get profitable?


In financial services, this approach is applied to payments, retail banking, insurance, and asset management, and moves into institutional sectors such as capital markets and commercial banking.


Digital Banking Solutions is becoming extremely popular

Not simply accessing your accounts online, digital banks are increasingly popular and becoming the favorite tool of the majority of people using banking services, and also gradually increasing in both legality and availability.


However, digital banking isn't just limited to online accounts. There are digital banks that only operate online with little or no buildings or branches. Mobility opened up a whole new world with smartphones and increasingly complex applications emerging, culminating in the disappearance of many traditional buildings and branches.


Blockchain Technology & Cryptocurrencies

The concept of digital cash first appeared in the form of theoretical research around the mid-1980s and 1990s, the history of Blockchain is closely related to the history of Bitcoin because Blockchain was first mentioned in the code. primitive for Bitcoin. Many topics published during those years have developed the application of cryptography with secure data and the advent of virtual money, in which Blockchain is designed to resist the change of Data: Once the data is accepted by the network there is no way to change it. In 2008, Blockchain was invented by Satoshi Nakamoto. By 2009, not just a vague and distant concept, along with the development of the Internet, Blockchain was first mentioned with the discrete phrase "Blockchain" in the original source code for Bitcoin.


With the advent of digital currencies or cryptocurrencies, such as Bitcoin, customers were able to use faster and cheaper ways to make transactions. Beyond being a virtual currency, this impressive advance in financial services and technology is expected to transform the world - especially when inflation and instability occur all over the world like today.


Saigon Technology - always understands and supports you every step of the way

Understanding the concerns of business owners on the digital path for their companies and projects, Saigon Technology is always ready to help offer solutions to improve and develop software systems of businesses. general and businesses specializing in the finance banking sector in particular.


Among the many projects that Saigon Technology has completed, there is a technology product named Baibai - a product designed exclusively for finance companies in Hong Kong. Baibai is a cryptocurrency exchange website where users can buy and sell Bitcoin and other alternative currencies. This technology product adds an unprecedented level of security to a convenient market solution.


In addition to Baibai, Saigon Technology also conducts many support projects for other world-class banking systems, with results and customer satisfaction maintained at the highest level - demonstrating dedication and level of a software company in Vietnam for clients from other economically powerful nations in the world.



In general, developing modern technology that brings many benefits and convenience is the pride of humanity in general, scientists in particular. The application of technology in areas such as Finance & Banking will certainly bring about effects such as:\


- Easily track processes

- Easily collect and manage data

- Quickly analyze data and give accurate results

- Ensuring the safety of more information


And many other factors represent the importance of technology in Finance & Banking. There will no longer be extremely inconvenient and cumbersome paper processes, experts believe that, in the near future, technology will replace those time-consuming processes and paper resources. - or at least, the leaders will also be able to easily manage and track their business processes on mobile devices, laptops ... conveniently and accurately.


Moreover, it can be obviously seen that there is no limit to the development and growth of technology. And apparently, technology has changed the way we think about the world around us. And one of the sectors most strongly affected by the digital revolution is the Financial Industry.


Certainly, many and many other inventions and innovative products will be born. Humanity will also step by step transform to the rhythm of life-bearing the breath of technology. For example, just look at the e-wallet product, how easy - fast - accurate and convenient. Not to mention the hygiene factor compared to cash, especially in the pandemic era raging like today!