Course Learning Outcome 1 Performance Output (60 points)

Discuss how such factors (globalization and ICT advancement) affect our financial system
and the way people use or invest funds? Present your answer in a narrative manner (2-3
pages).

Over the years, each corner of industries is evolving where is life has become accessible.

Specifically, the innovation of technologies causing disruptions both negative and positive in

many sectors even our financial system. The financial system is then responsible for a lot of the

world's resource allocation because it permits in exchange for funds between its participants such

as investors, lenders, borrowers, etc. so "What does the technology have to do with this?". Will it

change the financial system? Is it good or not?.

Since we are in the digital epoch, our advancement in technology brings change such as

from telephones to smartphones, computers to laptops, carriage to cars and buses, airplanes,

stoves, etc. The advancement in technology has revolutionized the finance and banking sector for

it strengthened the awareness of financial technology or 'FinTech". Computer and other modern

systems used by a company to deliver integrated and enhanced financial services are referred to

as financial technology.

Formerly, financial technology has created a new manner of banking that is online, and

several consumers had been using it. Banking has historically been performed in a non-virtual

environment. People will go to their bank in town to borrow money, transfer funds from one

account to another, and arrange their finances. In a corporal location, you'd communicate with

customers and talk with a friendly team member. However, these types of locations are gradually
becoming outdated. Online banking is getting more advanced each on every day; we can now

move money or pay for products with the simple click of its button. This means that we can now

access our bank accounts through looking on our phones, computers, and tablets Unlike, the

traditional way of banking wherein usually we can check the transaction through a passbook or

in an ATM. Also, banknotes are becoming less valued since we can just purchase an item

through an online payment; these are some apps that can be used Gcash, Paypal, Smart Wallet,

Dragon Play, etc. rather than using an ATM card, individuals are starting to use the e-wallet

services for less inconvenience. These are just a couple of how technology is transforming the

way the financial sector runs. Progress is the main source of destruction. Progress in this area is

normally accompanied by destruction when old personnel and technology become outdated and

must be replaced or updated. What's at stake here is the human element of the financial sector.

Along the advancement in technology, globalization has also become more influential.

Globalization, according to the WHO, is characterized as "an improvement in the

interconnectedness and interdependence of peoples and countries." It is widely understood to

include two intertwined elements: the opening of international borders to rapidly rapid transfers

of goods, resources, finance, individuals, and ideas, as well as shifts in national and international

structures and policies that encourage or foster those flows.”Globalization also affects our

financial system such as several financial institutions, including banks and institutional investors,

have expanded their geographical operations. They acted as an intermediary in this process,

channeling funds from lenders to borrowers across national borders. The aim was to simplify

financial regulations, remove mediators and break down barriers between financial centers

around the world. And the goal was to make it easier for the world's financial players to
exchange capital. This financial globalization has contributed to the growth of a global financial

market with an increase in contracts and capital exchanges. Globalization opens a lot of

opportunities locally and internationally which means people's lifestyles will change together

with technology; the knowledge about the world and even the latest trends and stock prices have

expanded that help consumer to invest funds effectively and efficiently. Also, Globalization has

contributed to strengthening financial technology through people who use online banking or

payment as a medium for transactions in purchasing an item and investing funds.

It is far too late to turn around now because the future has become far too intertwined.

The whole procedure must be restructured. Globalization, rather than seeking to profit everyone,

should aim to benefit everyone more equally. We are truly entering an era, a critical point, where

this technology becomes mainstream that it becomes a part of our daily lives. Technology is

bringing us into a whole new world and the most important aspect is maintaining the equilibrium

between automation and manual interference, and how harmonizing this would further

revolutionize the market for both enterprises and customers.

References:
“FinTech - A Definition by FinTech Weekly.” FinTech Weekly Definition,

www.fintechweekly.com/fintech-definition. Accessed 3 Apr. 2021.

Gazleh, Mohammad Abo. “GRIN - Globalization and Politics: The Effects of Globalization on

Human Life Aspects.” GRIN Verlag, 2001, www.grin.com/document/110500?

fbclid=IwAR0H_6DA7PAtZXmw6Yw29Jh81mKTRq35jYvA1d2QAicldoG_7g3lmslD_

9g.

Ismail, Nick. “How Technology Is Impacting the Finance and Banking Sector.” Information Age,

6 Feb. 2020, www.information-age.com/technology-finance-banking-sector-123471800/?

fbclid=IwAR28d-

9ZpDbmdKuMvqRHG5gr3AHLNLiHBcNAZRdbJ0L5gwJuI4OY9Rfe5qs.

StudyMoose. “Role of Technology in Globalisation Free Essay Example.” StudyMoose, 5 June

2020, studymoose.com/role-of-technology-in-globalisation-essay?

fbclid=IwAR3ymK6SS9aUQubAZaINwqZnn6n-

fj4u6UgFoxYfXWTCQTiSTzNnFV3gBfY.

youmatter. “What Is Globalization? Examples, Definition, Benefits and Effects.” Youmatter, 6

Oct. 2020, youmatter.world/en/definition/definitions-globalization-definition-benefits-

effects-examples.