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Financial Services - What Has Transformed This Sector? Financial services are actually the general economic services offered by the financial industry, which covers a wide assortment of firms that deal with money, such as banks, credit card companies, credit unions and mortgage companies. The services are usually regulated by government authority to protect consumers from high rates of interest, charges in arrears and legal malpractices. These firms also provide support services such as handling payrolls, processing government taxes and ensuring that tax payments are processed on time. Some financial services also include advisory services to individuals or organizations in various fields, such as investments, retirement plans, real estate and investment management. Many companies offer consulting services that are focused on financial education, market analysis, management of investments and investment strategy.    In line with financial innovation, the financial sector has embraced technological change, as well. A few decades ago, only banking and insurance were technically advanced; today, virtually all financial markets have caught up with technology. In fact, financial service companies even offer online banking and trading via the Internet. The impact of financial technology has been enormous, as it has allowed for a dramatic increase in efficiency and made the market much more competitive. One of the biggest changes is the development of financial market indicators that allow users to keep track of market trends and changes.    With the emergence of fintech innovation, the financial industry can now deal with complex problems that used to be handled only by highly trained financial experts. Financial software application has also played an important role in the financial services industry. This software allows users to process business transactions such as invoicing, customer support and management, payroll, financial planning and forecasting and inventory control and calculation. Software application solutions also help in eliminating the cost of manual transactions, while making the data accurate and streamlined. Apart from these application solutions, financial technology also provides tools for data warehousing, financial reporting, and advanced transaction processing.    Another major transformation that took place in the financial industry is the introduction of stock trading systems. Stock trading systems have enabled traders to get accurate information about the market even without access to the internet or stocks. Apart, from providing investors with financial information, stock trading systems also provide valuable information on the stocks and their movements. Most stocks are priced according to their future chances of profit and loss and stock trading systems keep an eye on changes in the price of stocks and helps traders to decide whether they should buy or sell stocks.    Big data has also contributed to the financial services industry by helping in the detection of frauds in the financial industry. Traditional methods are not able to detect frauds because of their inefficiency. According to experts, frauds usually happen due to some human error. However, with big data and smart phones, monitoring of financial industry activities has become much easier. Financial institutions use big data to analyze and monitor financial activities, while banks use mobile phones to receive and send alerts in real time.    Another important transformation taking place in the financial industry is commodity futures. The main function of commodity futures is to stabilize the prices of agricultural commodities such as wheat and milk. The major users of agricultural futures include farmers, jewelers, farmers' cooperatives, manufacturers, and oil companies. Futures contracts are traded on futures exchanges, which functions like an online stock exchange. Commodity futures provide financial companies and traders with tradable contracts for agricultural commodities.    Another transformation taking place in the finance sector is the movement of shares between brokerage firms. In the olden days, share trading was carried out through large banks. However, with financial services are becoming a part and parcel of our lives, many people now prefer to trade in shares via online brokers. This is mainly because brokerage firms have developed financial services websites where people can visit and make investments.    Finally, the last and biggest transformation taking place in the financial sector is the move of shares between banks. According to the analysts, this transformation has taken place after the passage of the Stock Exchange Reform Act in 2013. Under the new law, banks can now operate through their own stocks. However, there are few restrictions on the type of stocks that banks can operate through their own stocks. It means that you may now purchase and sell shares from banks directly.

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