Future Electronic Finance Models

Future Electronic Finance Models

Finance modeling has evolved in tandem with technology. Because internet has interconnected the world, finance had to include electronic business models of communication. E-finance emerged out of the necessity created in the business world and spilled out to the consumer world. Customary classifications for e-finance models are B2B and C2B, however, our research has focus on three major components; Electronic and online trading, retail banking, and e-payments. Also, the research focuses mainly on the C2B models because e-finance has developed around the consumer’s need to conduct transactions online or via electronic networks.

Electronic finance will be the lion’s share of finance in general. In the creation of a financial model there are always many variables to be considered. These variables are the reflection of the speed of business. As we approach the 22nd century an inevitable variable is technology. Its relevance occupy more and more the focus of the models. Electronic financial models will emphasize the need for a frictionless consumer transactions with minimal cost and maximum revenues. The more the use of computerized algorithms, like in the case of the Robo advisors, the more dependent are the transactions on technologies, therefore, the unavoidable demise of the old brick and mortar models. In such models the time lapse between transactions gave more cooling off period to the consumer. As the cooling off period is reduced, then the need for an alternative to satisfy consumer, investor and financier’s ravenous need to move the money from place to place. From digitized currencies to hybrid models of banking, future models of e-finance are going to have to adjust to the unstoppable speed of business.

Future of retail banking

Everyday increasing technological advances will clearly continue to affect all areas of finance, especially retail banking, increasing bank and Financial Institution’s efficiency and improving the customer experience. As customer behavior change its demand towards an enhance technology increases, and what is worst at no cost. They want to have the technological tools, but keep the personal relationship with bank employees. We can see it currently, since advancements in technology have made possible to offer bank services online, people are able to check their account balances from home in their computer or smartphone and do all sort of banking transactions such as transfers, bill payments, online digital check deposits, credit card and loan applications. Today customers are not choosing their banks on proximity, they are looking for convenience. “A new customer segment is emerging that is focused on a new twist on the idea of convenience, based not on proximity, numbers of branches or even longer hours, but on what many describe as “ubiquity"

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