Driving digital transformation through technology has been at the heart of FinTech industry. One of the key attributes of Fintech is the contribution to the credit market through innovation.
Fintech has been on the rise since the past decade or so. So you maybe wondering what exactly is fintech and why is it so critical to business? Fintech in simplistic terms are companies or institutions that have revolutionized the banking industry through technological advancements. It means to harness the power of technology to make timely business decisions, simplify processes, analyse data at limited costs and optimized resources.
Today, Fintech has moved at an unprecedented rate to provide solutions and services to customers through online banking, online lending, bill payment and other transformative features. There are also emerging fintech online courses which will help professionals progress themselves. Technologies like Artificial Intelligence (AI), Big Data, Blockchain, Cloud are able to store, process and analyse large amounts of data in a minimal amount of time, thereby enabling businesses to make informed decisions quickly. Fintech companies are able to roll out custom-made applications and services to banking instiutions allowing them to better serve their customers’ needs.
Use of Digital Data
For every transaction conducted there is a large amount of data that is stored and processes. Digital data warehouses are vast and can become tedious to extract and work with. Fintech market analyses Big Data using software applications, thereby enabling better transactions. For example, if you pay by your credit card at a store, your transaction will immediately reflect across your bank statements thereby allowing you to keep a check on your finances at a real-time basis. This has been enabled by the effective utilization of digital data.
Use of Digital Processes
There are many new features and attributes that have found their way into mainstream lending and credit market thanks to emerging technologies such as AI and machine learning. Most banking institutions today offer easy loan borrowing options, repayment and even increasing your borrowed amount all through digital channels. This means that consumers can borrow a large sum of money by providing the right documents online.
One of the key problems that Fintech industry is trying to solve is data privacy and protection. Cybercrimes, online frauds are on the rise and critical data can be protected by building the right infrastructure around it. Fintech companies are testing new and improved solutions to transform the services offered by banks every day. Professionals are also signing up for Fintech courses in order to be equipped to deal with the current scenario of financial services thereby enhancing their career trajectory.
Alternate lending is an integral part of the fintech revolution and the rise of applications and services will provide an opportunity to banks and financial institutions to upgrade their customer experience and meet the demands.