Future of Finance in the Financial Technology(Fintech) Industry

Future of Finance in the Technology Industry

introduction

Financial technology (Fintech) is a term used to describe financial services that are primarily technology-oriented or to apply technology to improve financial services. With the internet revolution and the strong penetration of smartphones, access to technology has become extremely accessible. This further encouraged the growth of explosive financial technology. In the beginning, the technology was limited to the back office of banks or commercial enterprises and only for bookkeeping and bookkeeping. However, this perspective has completely changed in the current era. The domain “Fin-Tech” now has a wide range of technological interventions, from personal to commercial financing.

Fintech now covers a variety of financial technology assets, such as instant money transfers, QR code-based payments to smartphones, to prevent a bank from issuing loans, raising money for a company, or managing its investments without the help of someone else.

Definition of FinTech

Gartner defines fintechs as early-stage technology providers that address financial problems in innovative (sometimes disruptive) ways through emerging technologies. Fintechs can distribute and earn in the same way as the products and services of a financial institution. The term can also refer to the technologies that these providers offer.

FinTech general innovation mechanisms

Innovation in financial services is not a new phenomenon. In recent decades, there have been innovations in credit cards, debit cards, and payment terminals in the 1960s, such as ATMs and telephone banking in the 1970s and 1980s, and new financial products in the wake of credit market liberalization. in the nineties. By the turn of the century, online banking brought new benefits to the bank without branches and had the ability to perform banking services remotely without having to communicate with customers to banks. With the advent of mobile or mobile devices, this technology has once again indicated that there is access to new operators such as mobile telephony, internet operators and hardware, and software suppliers. With these changes come predictions that direct funding would replace expensive and inefficient indirect funding and financial intermediation.

Digitization of finances

Digital disruptions have had a huge impact on different habits and behaviors in the professional world. Technology in combination with smartphones / mobile devices and the internet offers numerous advantages for customers and also for financial institutions. With stricter regulations and changing customer requirements, financial applications and systems have become faster and more progressive.

Below are some of the key components of digital finance transformation.

• High standardization:

 Financial functions integrated with technological systems with standardized processes and data lead to high standardization.

• Highly automatic functions:

oThe adoption of new technology tools leads to more automation of processes for services such as money transfer, KYC verification, etc.

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