Financial technology or FinTech has gained massive popularity in recent years. It involves using technology that helps banks and financial institutions ease, reform, and speed-up their working for a smoother process. From OTP confirmation to payments, there are countless examples of this technological advancement. It has bridged the gap between the customers and banking institutions and contributed to building a more transparent relationship.
Listed below are top things that give a better idea about Financial Technology.
1. No more traditional banking systems
FinTech is being widely used today because of the ease of working provided to the bank. However, that doesn’t mean the financial institutions have turned obsolete completely. The big financial institutions and banks still thrive because of their matchless brand value, but FinTech has undoubtedly added value to their working system as well. It’s a disruptive solution that helps the players to deliver better results and attain higher customer satisfaction. For this reason, more and more banking institutions have started to invest a big chunk of their budget in tech. Moreover, several banks have begun to collaborate with the FinTech companies to ensure better customer service.
2.FinTech offers the convenience of making payments.
FinTech has eased things to a great extent. You can easily send or receive payments using a handset or any other device with access to internet connectivity. It has reduced the life of both customers and service providers. Fintech Technology offers the privilege of making bank payments anywhere, anytime.
FinTech is everywhere today. It features a unique combination of simplicity and convenience. The best part is that it is highly concrete and reliable. Also, the technology has helped combat various instances of financial crises and has enhanced security terms in these institutions. With the economy going cashless, people don’t have to deal with financial cringe anymore. FinTech startups have been doing great in filling the void created by financial institutions. Hence, many financial services came up that helped people out and gained popularity as a result.
3. Better management of money
FinTech firms and banks enjoy the benefit of operating and managing their systems at a low cost. Moreover, they also get the advantage of meeting consumer’s queries and individual requirements in real-time because they can access a massive customer data pool and information. Furthermore, FinTech institutions have a wide range of networks, an excellent customer base, and most importantly, they strictly abide by the standard industry rules and regulations. It has resulted in intense competition among financial institutions as the technology has empowered both small and big institutions to achieve flawless consumer service.
4. Blockchain and Cryptocurrency
There are countless Fintech examples where the technology has reached a level where it could create its digital currency. Ethereum, Bitcoins, Ripple, and others are some of the most common types of cryptocurrencies gaining massive attention. Digital currencies work on a technology termed a blockchain. It is a digital ledger serving as a transparent financial transaction method. It is a highly secure block and capable of eradicating the traditional banking system.
5. Easy access to financial advisories
FinTech applications help manage financial concerns while facilitating the consumers with easy access to financial advice in real-time. These applications use behavioral information and transactional information for providing prompts, insights, and plans for helping consumers with money management and bill payments. For example- if a customer tends to overspend but the account has low funds, the application knows the same and highlights the same before the account holder proceeds with the next payment. Also, the technology offers the privilege of automatic ‘sweep up’ so that the users have their bills cleared in time.
Technology is everywhere today. The introduction of FinTech applications has eased things further while upgrading banking services. Though things have revolutionized, better individuals need to understand that technological advancement has its pros and cons. Hence, we need to be careful with its application in the banking system because of its risks, such as malware attacks, the threat of money laundering, Application Security, and more.
In a nutshell, FinTech has revolutionized how we used to handle financial concerns while eliminating delays and errors that used to occur otherwise. The innovative solutions have potentially reduced the cost while enhancing security, speed, and accessibility.