As technology is developing quicker than ever before, every sector must understand several different technical terms and the benefits that come with each one of them. The financial service sector is one of the fastest-growing sectors in terms of technological improvement. Here, one can observe various startups channeling technical innovations like blockchain and machine learning with the intention of service improvement.
To assist the finance industry better, global experts have come up with several captivating Fintech Solutions. But what exactly does ‘Fintech’ mean? Let’s check it out here…
‘Fintech’ term is most commonly connected to financial services. It means financial technology, which broadly refers to the modernization of technology to confront the traditional methods employed in the finance industry.
Fintech Solutions embrace a lot of services, eventually revolutionizing the digital era. Let us have a look at some of the most prevalent examples of Fintech Solutions.
Example 1: Offering mobile payments facility
Have you ever used a service like PayPal, Venmo, or Samsung Pay? Such mobile payment apps are the result of Fintech Solutions. It has been estimated that by the end of 2020, over a billion people across the world will be using such mobile payment gateways.
Example 2: Getting into digital banking
Using spreadsheets to budget and track the finances of a business is no more in style. With the advent of digital banking, the banking industry has been completely transformed and has also changed the way we used to expect any work done under the traditional banks. Digital banks or ‘challenger banks’ keep every finance record in one place, which is an app on your smartphone. As an example, we can observe big industry names like Revolut claim a worldwide customer base of more than 10 million. Entering into the unexplored digital ground, many big industry names are offering fresh business accounts as well. Isn’t this a great deal?
Example 3: Insurance Technology
Insurance technology, also called Insurtech has transformed the way global customers deal with their insurances. Now, you can easily calculate your insurance premiums automatically. Devices like telematics (black boxes) have now been introduced to young or inexperienced drivers, just to minimize the amount of their car insurance premium.
Example 4: Cryptocurrency
A cryptocurrency is a form of digital or virtual money. This is an epic example of Fintech as it is purely electronic and requires no physical banknotes or coins. Here, Bitcoin is a very good example of a cryptocurrency. In fact, investment in this technology has been skyrocketed over the last few years.
Example 4: Blockchain
Yet another Fintech solution grabbing every business’s attention nowadays is Blockchain. Precisely, Blockchain is a data structure, which holds transactional records, while certifying security, transparency, and decentralization. It is certainly a good deal to go for.
Example 5: Crowdfunding platforms
Crowdfunding Fintech solution authorizes the Internet and app users to transact with others on this platform. Not only this, but it also allows individuals/businesses to pool funds from several sources in one place. Some of the best Crowdfunding companies are Kickstarter or GoFundMe, which have made it extremely easy for the startups that otherwise used to wander from one bank to another for a business loan. They can now ask for funds straight from the investors and start the groundwork right away.
The Fintech industry is growing like anything now. If we look over the last decade, the share of investment into Fintech has inflated from 5% to around 20% now. This is adequate to say that Fintech is growing over the worldwide business gigantically and those financial institutions who are not going digital may be left behind in this competitive era.
Remember that in the coming days, technology and artificial intelligence will be the leading foundations for all businesses. And so, it is important to look for a suitable Fintech Solution provider for your business and get on towards the journey of technological advancement!