The term Financial Technology or Fintech is becoming more and more popular and hence it can be defined as the branch of technology that deals with all the financial operations and services like; mobile banking, digital payments, block-chain, and AI oriented financial advisors. Fintech is evolving and is offering an improved convenience, security and even tailored services that are changing the way we engage in financial activities.
Key Ways Fintech is Revolutionizing Finance
1. Digital Wallets: Other services such as PayPal, Apple Pay, or Google Wallet facilitate business, payment is easier and more secure than ever. Some of the features that are found in these apps include P2P transfers, loyalty programs among others.
2. Mobile Banking: The mobile banking applications give the users the ability to carry out their financial activities such as checking balances, making payments, and even applying for a loan from the comfort of their mobile phones. This accessibility is especially important in the areas of the country which are not well provided with communication means.
3. Robo-Advisors: Betterment and Wealthfront are automated service providers that use investment guidelines to provide tailored advice to the public thus making it easier to invest.
4. Blockchain Technology: The use of Blockchain makes the financial operations to be secure since the data is spread across the network and cannot be changed easily. It is applied in cryptocurrencies, cross-border monetary transfer, and identity Verification/Authentication.
5. Peer-to-Peer Lending: LendingClub and Prosper are marketplaces which allow the borrowers to get funds from the investors directly thus increasing the accessibility of credit, decreasing the costs for borrowers, and providing higher yields for investors.
6. AI and Big Data: Technologies such as Artificial Intelligence and Big Data are used in providing financial services that are more suited for the individuals.
7. Financial Inclusion: Fintech is thus helping the unbanked obtain financial services that would otherwise not be available to them through traditional banking and thus improves their standard of living as well as fight poverty.
8. Insurtech: Insurance is not left behind in technology advancement as AI, big data, and Blockchain is applied in underwriting, fighting fraud, and coming up with new insurance products including microinsurance.
9. Future Trends in Fintech: The next trends in the development of the fintech industry are open banking, the integration of finance into other industries, DeFi, RegTech, and the use of digital currencies such as CBDCs and stablecoins. These trends will persist in the future of financial industry where services will be more connected, safe, and fast.
Go to the original article — How Fintech is Changing the Way We Handle Money.
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