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The unprecedented expansion of technology in every nook and cranny of our lifestyle is phenomenal. The rise of the same in the financial sector is equally fascinating and impressive. Financial technology, also known as “Fintech”, is generally considered as harnessing or employing various technological tools by companies to advance their innovative solutions, enhance product quality and delivery of services, and develop better business models and applications associated with financial branches.
Significant advancements in financial technology would include online payments, cashless transactions, blockchain and marketplace lending.
The brush of technology and finance is not a newly introduced trend. The coming of ATMs, credit cards and trading floors has already put in motion the technological integration into the financial sector. What distinguishes Fintech from the former digital operation is its heavy integration of technology like blockchain, data science and AI tools into the financial sector to make the industry more efficient and safe.
The in-person visits to the banks and standing in long queues for long hours can be excessively hectic. With Artificial Intelligence and IT tools, banking has become more effective and accessible. The mobile banking facility has made easy access to financial services sitting in the comfort of your place. Some banks, called Neobanks, work solely online through digital infrastructure and no physical setups.
One of the biggest boons of fintech that we all can unanimously vouch for is its provision for online and easy transactions. Payment via QR Code has made all our lives convenient. Any mobile device, smart or Android or Apple, with the mere feature of the camera, can bestow you with banking services. Fintech payment companies have changed the course of business functions dynamically. With online payments, transactions worldwide have been made much more accessible and thus frequent. Payment companies like Paytm, PayPal etc., are moving the industry remarkably.
Blockchain technology facilitates the mining of cryptocurrency and drives its market. Being the industry’s highlight, it is transforming traditional practices and enhancing the wheels of the finance industry. Jonathan Merry considers Blockchain and Cryptocurrency as the moving tool for creating practical applications in the fintech sector. The significant developments and progress in the crypto market can be credited to fintech and blockchain.
Fintech has led to the birth of many investing and saving apps. With both savings and small-dollar investments, the industry has made an incredible reach among the masses. Companies are sidelining the excessive barriers associated with trading while making it easily accessible to people.
Insurance companies are technically the last industry to embrace the technology, but they eventually are now reaping the benefits of financial technology. Fintech companies are collaborating with Insurance firms to expand mobile insurance services and easy access.
Different branches of financial industries are opening up for fintech, all at their own pace. However, some sectors were initially reluctant to usurp the traditional ways of working and embrace new fundamentals of working altogether. But the benefits of fintech are becoming visibly apparent to all sectors, moving them to adopt this technology. People and prime drivers of the industry are still getting the hang of this tech, but with time and more awareness, seeing the employment of Fintech everywhere won’t be a far cry. Follow Jaldee Business blogs for regular updates on moving trends.