By Arjun Chandrasekar.
The world as we know it is becoming highly digitized with new technologies and renovations to existing products being created every day. We now have artificial intelligence, machine learning, big data, and so much more to complete almost any task we want, from in-bed dining to scraping web servers. Digitization is changing how we operate, not only as singular humans, but as complete businesses, industries, and the economy in general. According to aptitudesoftware.com, “90% of finance organizations see data and analytics as a high or moderate investment priority,” and “1000+ surveyed executives said, enabling digital transformation was the number one challenge faced by finance and accounting professionals. But it was also ranked as the biggest potential solution to other listed challenges.” But why are companies making this digital shift, and how will it impact our lives and the future of finance? Today we’ll be exploring exactly this.
Motive for Digitizing
Digitizing has many practical and efficient benefits in finance. As we know, finance is very data and logistics heavy, meaning there’s a lot of processing numbers that needs to be done quickly. In the past, accountants used to use their fingers and simple calculators to review files and process data, but that was extremely inefficient and slowed business down. Now, accountants use digitized software technologies such as Excel, Spreadsheets, and other rapid data processors which allow them to not only go through it quicker, but also model their data in real time to assess other factors. There are a plethora of motives for digitizing companies and transforming into the world of digital finance, some of which include digitizing new technology, keeping the old technology the same, and incentivizing new customers to purchase old-fashioned chasing.
Examples of Digital Shifts in Companies
Predictive Behavior Analytics
Predicting financial market movements has been one of the biggest goals of the business world, and some companies are getting close. Of course, the market will always be 100% unpredictable, but even getting to 99% is good enough to make sound decisions. Utilizing artificial intelligence models through machine learning(ML) languages, data scientists at companies have been able to theorize calculations for predicting the movement of stocks. One popular language into
Targeted marketing has also been a crucial tactic that all companies want to achieve in their future. Using the right marketing tactics to find the right consumers for a company’s product is vital for their success. For example, if a healthcare company was marketing to iOS users, that wouldn’t make any sense. Finding the right audience and directly marketing towards them is one of the biggest goals companies have nowadays.
Data-driven Customer Insight
Customer insight usage to renovate and renew a company’s ways has become very popular now. There are many ways customers can bring their opinions and feedback to the table, for example, reviews on the App Store, or complaining to customer service, etc. Social media is bigger than ever now, and many users can also speak their opinions on their media platforms. But what good does this feedback do if the company never sees it and organizes it? That’s where customer insight models using data come into play.
In short, as we transform to a more digital world with tech spread everywhere, we are certainly going to see a revolution within the finance world. We hope this article helped in any way and if you’d like to learn more about business and finance, be sure to check out the other articles!