Technology has proven to be disruptive, sure; but none has proven to be quite as disruptive as FinTech. Today, FinTech-driven innovation has revolutionized the delivery and execution of financial services and not just for banks and such but for all businesses out there. The pace with which FinTech has transformed companies across different sectors.
And, over the past few years, the financial technology industry has developed at a significant pace. Though despite the rapid development of this phenomenon, the exact definition of fintech has not yet been derived. Often referred to as fintech (financial technologies) is a business direction that utilizes new technologies and innovations. It involves the application of advanced avenues such as digital, mobile payments and transfers, e-wallets, online lending, P2P platforms, crowdfunding, online funds, online insurance, and more.
To help you better understand the impact of FinTech, here are some of its key benefits:
1. Payment processing: The most popular aspect where FinTech’s influence has been for everyone to see is payments. It makes sense too; after all, today, customers want to be able to make payments for their purchases quickly and seamlessly instead of being tied up with tedious means such as cash and cards. FinTech has made all that possible while also ensuring top-notch security of users’ sensitive data. FinTech firms that offer payment processing services make use of advanced technologies to ensure a smooth and secure process from start to finish.
2. Lending: Decidedly one of the most sought-after services in which FinTech has come to play a crucial role in lending. Today, more and more companies are entering the lending business, allowing both businesses and individuals to borrow money & that too online. As you can imagine, both the lender and borrower stand to gain immensely from such a modernized process. Furthermore, FinTech has also made peer-to-peer model lending much easier by enabling borrowers to connect with lenders in real time.
3. Wealth management: Yet another aspect where FinTech has made a mark is a wealth management and automation of investments. Before you ask, more and more businesses now offer automated investing services, which are robotic advisors that make use of artificial intelligence, machine learning, and other such modern technologies, together with extensive amounts of data, to not only ease the process of investing one’s hard-earned money but also make it inexpensive. The inexpensive bit is based on the ability to eliminate the expensive human advisor factor from the process. Some prime examples of FinTech-driven offerings in this regard include Wealthfront and Betterment.
4. Alternative lending: Alternative lending, i.e. the concept of offering people innovative means and methods of accessing personal loans, has made it significantly easier for people to access financing options. What’s more, is that alternative lending has made this ability to access funds much quicker albeit without the tedious application processes that are associated with conventional financing options offered by traditional financial institutions. There are plenty of alternative lending providers across the globe, including Upstart, Prosper, LendingClub, etc.
There is no doubt that FinTech has taken the world by storm, especially the sector in which it primarily operates, i.e. banking and finance. However, that is not to say that the phenomenon of FinTech has not had a far-reaching impact on other industries. Today, countless sectors all over the world, and businesses that operate within them, are leveraging tools driven by FinTech in myriad ways. Suffice it to say that all businesses across the broad spectrum of industries stand to benefit from FinTech. Now, if you too want to put this technology to use for your business, we suggest that you start looking for a trusted custom FinTech software development service company. Their expertise will be invaluable for ensuring the success of your endeavors.