Definition of digital financial platform
Digital finance is defined as financial transactions provided through electronic means based on advanced information technology, and consists of various forms such as mobile payment, online banking, and electronic payment. A digital financial platform is a term referring to a computing program that implements electronic financial services. Recently, mobile financial platforms have been widely used to easily process all financial transactions and facilitate economic activities with smartphones.
The digital financial platform is implemented as a fintech service, which means a new type of financial service that combines IT and mobile technology. In addition, the digital financial platform aims to provide customer convenience and new value by providing services regardless of time and place. Therefore, the latest digital financial platform focuses on identifying how convenience is being provided to customers, finding ways to overcome customer inconveniences, and improving them.
How did the digital financial platform start and develop?
The history of digital finance is proportional to the history of computers. Since the history of computers is less than 100 years old, the history of digital finance is also not long. However, like the rapid development of computer technology, digital finance has also developed much more rapidly than other industries.
Since the 1960s, banks have activated computerized finance using computers, and gradually applied the online system. The development of the Internet efficiently connected computers to computers, and this expanded to connections with financial institutions. Since then, as major banks have introduced the ‘next-generation system’, banks have started Internet banking services. This became the cornerstone of the first digital finance platform.
With the development of integrated circuit and semiconductor technology, computer functions have developed more quickly and accurately, and digital financial services have also developed rapidly. As the spread of personal computers became active, many people used Internet banking 24 hours a day. As banks introduced financial automation systems such as PC banking and automated response systems one after another, customers’ visits to bank branches rapidly decreased.
Advances in telecommunications and mobile and changes in the digital financial platform
Advances in telecommunications and mobile technology bring major changes to digital financial platforms. In the 2000s, the development of Apple’s smartphone made it possible to implement the functions of a personal computer into a mobile device. Advances in telecommunications and internet technology have greatly supported the development of mobile financial platforms.
The popularization of smartphones has become the foundation of a financial environment that transcends time and place, and people can conduct financial transactions anytime, anywhere. The development of these computer and communication technologies has advanced the development of digital finance and created an era of digital banks without offline branches. Digital banks have improved security and convenience by utilizing biometric authentication such as fingerprints, and increased convenience with customer-oriented digital cx. In addition, it provides international and efficient services through cutting-edge technologies such as blockchain and artificial intelligence.