Re-shaping Financial Mechanisms in the Context of Technological Innovation

Abstract

This paper discusses the ability of technology to reshape and enhance some financial mechanisms in the Banking industry for example in terms of operational dynamics and the strategy formulation process. We further investigate circumstances under which banks' different segments can be affected by advances in technological potential compared to the customary banking processes and traditions. There are two major limitations of the traditional financial money arbitrage transaction systems, the time factor and resultant high level of potential foreign exchange risk and overall risk exposure. The proposed new system centers on currency arbitrage transactions and currency exchange transactions along with the high volume of currency trading. The objective of the new proposed system is to assess the quality and power of electronic business processes within the financial-Tech industry. We expect the new proposed model to be more productive in terms of minimizing the time factor and risk.