Fintech is reshaping the way financial services take place in the 21st century.
What is Fintech?
Investopedia defines fintech (or financial technology) as “a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.” These services typically consist of banking activities that are in an online format that are but not limited to mobile banking and digital loan applications.
A Brief History of the term:
The fintech term original was catered towards the finance and banking industry internally to describe the technology they used behind the scenes to conduct business. However, in today’s market, technological innovations regarding monetary transactions either through depositing a check in your account by taking a picture of it, or reading the current status of the stock exchange, and receiving advice regarding buying or selling stock via an app is considered fintech.
The Benefits of Fintech:
Efficient Payment Methods- Mobile applications allowing customers to pay their bills and transfer money from their accounts to make payments at anytime and anywhere.
Online Lending – Digital lending platforms allowing banks and their customers to expedite the loan process by implementing e-signatures and online documentation.
Crowdfunding – Websites and mobile applications that enable the client to raise money to fund their projects online and share initiative with others via social media outlets.
Robo-advisors – Online and mobile platforms that provide advice on financial management that relates to saving, spending, and stock market choices based on your current financial status.
Personal/ Business Financial Updates– Applications that afford customers of banks notifications regarding their account activity and security.
Who is the fintech consumer?
Fintech serves businesses and clients. In particular, B2B, where banks can partner with financial technology companies to assist them in establishing their mobile banking platforms that handle loan applications process like Zikher or develop software for banks to manage their clients business accounts. The partnership that is set between fintech companies and banks is considered integration. Financial technology also serves the relationship between business to clients such as small businesses or a customer.
Author: Nanette Thompson
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