FinTech – an urging Financial Technology in today’s competitive world. We hear all over the internet talks about the FinTech and by the way, what is actually FinTech?
FinTech is the fresh jargon that is reproduced today to enhance the technological innovation in the financial institutions. It is originally referred to as computer technology, which has an ability to capture and process the data in the real-time and is enforced to the back office of the banking sectors and the trading firms. Currently, it is enhancing the technological interventions into personal and commercial finance too. FinTech has recently been serving as end-end transactions over the internet via cloud services by just not about digitizing the currencies but monetizing those data.
Why Sudden Growth In FinTech?
From the statistics, it is predicted that the smartphones and the mobile app users in the world likely surpass from billion to trillion within the next year. Previous decades, rural people were unaware of the mobile phones and its improvement. Due to the technological enhancements and reinforce, now they are forced to migrate from the rural to the urban environment, where the living style is modern with foreign necessities.
India is in the midst of monumental undertaking through the Pradhan Mantri Jan Dhan Yojana (PDJDY) bank accounts for the financial inclusion ensuring access to all the financial services. The ultimate mission of this JDY account with several beneficiaries is to reduce the statistics of unbanked to the 100% bank account holders in all the rural and semi-rural living spaces. At present, the statistics showcase the improvement of account holders with the financial services below the poverty line.
Likewise, Barclays’, has recently launched the Financial Markets Index in Africa – to migrate the unbanked into the financial mainstream for their continental development.
Due to the major focus on the financial services from the government, private, commercial sectors and a user’s interest, FinTech has started to rise among the financial market. And ultimately the usage of the mobile phones and the financial apps will be directly proportional to the increase in the human population throughout the globe in the upcoming years. By then, FinTech is predicted to be the superlative source between the mobile technologies and the accessible banking stems that never FADS – A terminology, which is talked for quite some days and later fades.
Economic Welfare of FinTech
Most Probably any approach will have advantages to the greatest extent and disadvantages to the lesser extent. But according to Financial Technology – or FinTech has been always an added value to the business as well consumers with no disadvantages. Let’s peep into the causes for enhancing the FinTech
- Improves the payment systems and customer relationship management
- Transactions make easier, even during the non-working hours (anytime at anywhere with more secure options)
- Extended banking hours than the traditional banking
- FinTech has been reshaped e-commerce, payment, asset management, insurance, rapid loan approvals, securities, and cryptocurrency like Bitcoins, person-person payments, free payments. Everything Fintech made popular and handy today.
- Artificial Intelligence plays the major role in the financial sectors by reducing the human efforts and replacing the complex human activities.
Who are the FinTech Users?
Moreover, the above four strategies bind the overall living space of the humans on the earth, showcasing the importance of FinTech in the financial environment. So, FinTech is the latest solution provider to every individual.
Six Active Areas of FinTech Attracting Investment
Unsurprisingly, it is a millennial period that the people are making the most use of the financial industries, but within a short period FinTech has reproduced with new jargon, latest technologies and services revolutionized the world with the finest financial services and showing no signs of slowing down forever. Let’s peep into some six areas of Fintech that are deliberately driving growth and attracting investments,
Trends towards the financial sectors like stock trading apps and competition for loans have increased globally, according to the current economic world. FinTech startup has received nearly $17 billion in the funding during 2016 and the sum is increasing as of now 2017 and globally 26 FinTech unicorns valued nearly $84 billion. So definitely, there would be a huge perk in the FinTech on late 2018 with the increased awareness in the human’s daily lives.
I hope this post conveys more or less the crystal clear layout about today’s hot buzzword “FinTech” and would have been useful for the startup. If any interesting happenings on this evangelist, I would like to hear from your comments.