What has the power to change and alter our lives in many ways unimaginable, that we can’t even imagine, because it is now the norm? What has evolved with us, in this limitless world? Technology! This new tech is not stopping anywhere. In all whims of society, its predominance has been intriguing and thrilling. One such use is in finance. Financial technology is always changing for the better, to improve and automate the use of financial services.
The word Fintech is a combination of "financial technology".
Until now, financial service firms provided a wide range of services under one roof. Traditional banking activities, as well as mortgage and trading services, were all included in the scope of these services. Fintech unbundles these services into distinct offerings in their most basic form. Fintech organizations can be more productive and decrease costs related to each transaction by combining streamlined services with technology. These have affected traditional trading, banking, and financial advice, as they were once the realm of salesmen and computers, but are now moving towards mobile devices.
The fintech industry includes a significant part of mobile banking. Consumers have increasingly sought simple digital access to their bank accounts, particularly on mobile devices, in the field of personal finance. In recent years, fintech has increased the number of investment and savings apps. Companies like Robinhood, Stash, and Acorns are lowering more barriers to investing than ever before. The way we do business has altered as a result of payment businesses. Owing to fintech, receiving money from anywhere in the world is now easier than ever.
The shift in approaches
This financial services sector, which emerged in the 21st century, refers to any technological innovation in the financial sector: retail banking, financial literacy, cryptocurrencies. Examples of fintech include stock trading apps and websites, peer-to-peer lending sites that increase competition for loans and thereby reduce rates, and robot-online services that provide online algorithm-based personal finance management. Since its emergence, a major sight has been observed in terms of its applications. Towards a more consumer-oriented service approach, fintech now includes an array of industries like fundraising, education, and retail banking to name a few.
Success pillars of fintech
To succeed in this venture into technology and competition, one has to master four areas. The first is entrepreneurship. Companies with a well-defined goal and a clear, quantitative value proposition stand a better chance of success. Second, technology; from strategic deployment of computing knowledge, growth and opportunity accompany happily in the fintech market. Financial services’ enormous datasets need strategic planning. The third is domain knowledge. Finance, is undeniable, one of the most complex sectors of the economy. Hence, to identify viable opportunities and at the same time maintain credibility, one to be aware of the field of finance. The fourth pillar-policy and regulation-helps identify that government regulation plays a significant role in finance, and one shouldn’t ignore its political ramifications.
In terms of consumers, like with most technologies, the younger you are, the more likely you are to be aware of and appropriately define, fintech. Given the massive size and expanding earning (and inheritance) potential of that much-discussed cohort, consumer-oriented fintech is primarily aimed at millennials. Some observers believe that this one generation emphasis is not due to the characterization of capabilities, but due to the size of the market.
Fintech is a booming business with seemingly limitless opportunities to improve our financial systems. With an array of opportunities and possibilities, fintech has exponential growth, enhancing all whims of life.