The 21st-century customers demand more and better, thankfully for businesses, technology has evolved to save the day. Every industry today has been going under a technological transformation to meet the needs of its consumers whose behaviour has been influenced by time and technological advancements. The brick and motor stores have got a dot com address to serve their customers online. Traditional banking services have been upgraded to digital banking services to cater to the needs of their customers on a 24*7 basis. This change has been possible only because of major technological advancements in the banking and financial services industry; this amalgamation of technology and finance has given birth to the Fintech industry.
The major emphasis of the Fintech industry is to provide more refined and targeted services to the customers and overcome the challenges faced by the traditional banking and finance segment. At the core of the Fintech industry lays the idea of leveraging technology to solve problems creatively, providing maximum customer satisfaction and creating a pool of loyal customers. Fintech also includes the development and utilisation of cutting-edge cryptocurrency. It’s a broad term that incorporates all progressive technological innovations in the given space.
Examples of Fintech Applications
Now that we have a basic understanding of the Fintech industry, let’s delve deeper into the subject and find out about the different applications of Fintech that are improving the world for better.
Today, it doesn’t seem like a big deal to transfer payments given the mobile payment solutions provided by various companies. A few decades ago it was just a dream, transferring payments was a challenge and it required you to visit your banks in some cases to do the drill. Now with the advent of progressive Fintech technology, you just need to use your smartphone to make a purchase and that too within a few seconds.
Robo-Advisors and Financial Management
Who would’ve thought that the 21st century will offer Robo-Advisors to guide a human on viable investment solutions and address finance related queries? Robo-advisors are the latest trend in the Fintech sphere. With the growth in Artificial Intelligence and Machine Learning technology, robots are being trained to do more complex tasks that earlier required human intervention. This technology provides leverages various algorithms to provide asset management solutions for different customers by assessing their needs and requirements.
Blockchain and Cryptocurrency
Cryptocurrency has been gaining widespread acceptance and popularity from the customers. There are cryptocurrency exchanges that facilitate the buying and selling of cryptocurrencies like Bitcoin. Blockchain is gaining widespread acceptance and being used for security purposes to maintain the privacy of data and keep it from being misused.
There are various crowdfunding platforms like Kickstart, GofundMe, etc. that became popular in the recent years. These crowdfunding platforms allow users on the internet to send and receive money from other users who visit the platform. The major applications of these portals have been realised while accumulating funds for a cause. People also use these portals to get funding for their business or project from investors across the globe.
Fintech has also spread across the insurance industry, InsureTech has been the buzz word in the insurance sector that takes a holistic approach to insurance services and covers everything including car insurance, home insurance, data protection, etc. InsureTech and personal finance companies like Mint, LifeLock, etc. are gaining traction from investors in the Fintech space.
The word Fintech is an amalgamation of Finance and technology; it has revolutionized the financial services industry and has spread across other related sectors like insurance and banking providing maximum customer satisfaction.