Online Financial Institutions & Technology
Wells Fargo, founded on March 18, 1852, according to their website is “forever linked with the image of a six-horse stagecoach thundering across the American West, loaded with gold. The full history, over more than 160 years, is rich in detail with great events in America’s history. From the Gold Rush to the early 20th Century, through prosperity, depression, and war, Wells Fargo earned a reputation of trust due to its attention and loyalty to customers.” Wells Fargo offers personal loans, small business lending, as well as commercial loans.
Historical brick and mortar banks focused on relationship banking and conduct surveys, has customer advisory councils, Global payment conferences, and customer site visits to ensure that satisfaction and customer service remain a definable goal. Establishing relationships with lenders is vital for veterans returning home from active duty military service during the pre-venture phases of business startup. Although the relationships may not be in person, relationship banking is indispensable to the success of large lenders and first-time borrowers.
Traditional lenders now provide convenient online services, CEO Mobile, for customers to sign on and manage accounts as well as make financial transactions via smartphone.
Types of Technology Used to Drive the Virtual Business Operations
The Mobile Token customers can use their iPhone® or AndroidTM device to access Commercial Electronic Office® (CEO®) services and perform sensitive transactions from your desktop, laptop, tablet, or mobile device. The mobile device contains the token, so there is no concern over misplacing it or security and privacy concerns.
CEO Mobile Token uses proven RSA SecurID® technology that lets customers generate a one-time code on the mobile device that you can use to sign on and access secure CEO services. CEO Mobile Token provides an added level of security to help protect your accounts and information, and there’s no additional charge to use the feature.
CEO Mobile Deposit allows customers access to their checking balances, the ability to virtually transfer funds, deposit checks, and make payments using their CEO Mobile service. Customers can remain updated about accounts, improve cash flow, and reduce trips to the bank.
The Implementation of technology has become essential for the future of banking. Current technologies like Automatic Teller Machines, (ATM) Internet banking, mobile banking, data warehousing with management techniques like Customer Relationship Management (CRM), Human Resource Management (HRM), Management Information System (MIS), Decision Support Systems (DSS), and electronic-marketing, have enhanced the functioning of banking to help adapt banking to meet the needs of a virtual environment even before times of COVID 19.
The quickly evolving global information infrastructure is driven by information technology, (IT), computer networks like the internet and intranet, and advanced telecom systems allow for technological and electronic commerce, (e-commerce) platforms at a universal level, leveraging the internet as an invaluable business tool.
These digital advancements have created a new type of economy, often referred to as the digital economy. With this digital transformation comes other changes through technology including the creation of virtual supply chains, new forms of product, and service delivery like e-banking. A consequence of the digital economy is a change in the balance of power, which appears to be shifting in favor of the customers. Traditional lenders have a goal of being customer-centric, so this customer-first philosophy fits the model of how they interact with customers and is enhanced by this power shift in favor of their customers.
The transition from a traditional method to online or virtual banking requires technological support and effort, effective planning, and efficacy for its execution. The business of banking is dramatically changing, specifically in monetary transactions that are adapting from conventional to smart technology banking practices. To support the emergence of virtual business, the banks are designing adaptable products.
A technology through which banking customers can be reached is through mobile banking. As mobile device based banking has emerged, its introduction to customers around the world can tap into that technology as a secure and convenient medium in virtual banking and online business.
Future Technological Advances and the Virtual Aspect of the Business
Another change is the introduction of virtual currencies, using distributed ledger technology (DTL), used in blockchain technology has piqued the interest of the financial industry as an enhancement or replacement of the use of double-entry bookkeeping practices, and the use of other monetary tracking efforts.
Other concerns include decentralization of systems such as blockchain protocol which threatens processes within financial services as well as the use of obsolete identity management technology to protect customer privacy.
Financial regulators continue to monitor this quickly developing the use of DTL transactions as it is more commonly used and adopted as an adequate solution for securities markets.
Traditional brick and mortar lenders have expanded their relationship banking mission with the use of mobile banking and online platforms. As one of the nation’s oldest financial institutions, each has embraced technology to solve the problems of commercial customers as well as retail customers.
The use of DTL technology, as well as other digital app-based interfaces, allows Wells Fargo to compete against a growing trend toward customer-focused banking.
Challenges include regulations to adapt and monitor the progress of electronic commerce as well as fears of loss of privacy and concerns of theft from hackers and other virtual pirates.
Online financing should be able to keep pace with technology to quell the concerns of commercial and retail customers as virtual financing transforms how banking is performed.
January 19, 2021
Originally written by Brent Peacock, Director of the Florida Veterans Business Business Outreach Center.
The Florida Veterans Business Outreach Center is funded in part through a Cooperative Agreement with the US Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.