FinTech is basically an integration of finance and technology and refers to any business that needs to use technology to automate their financial services. The term ‘FinTech’ is widely being used in various businesses starting from mobile banking to cryptocurrency hence its application is quite broad.
We have listed a few industries and areas where the use of FinTech is widespread;
Banking has adopted technology to such an extent that many people have not even seen the faces of their bank branches owing to mobile banking and internet banking. If you need to manage your personal finances, there is hardly any need for you to physically do anything as you can use your mobile to manage your banking needs. In fact, the rise of Neobank has further pushed the trend of mobile banking as Neobanks are banks without aby physical branches and completely depend on banking through mobile and internet.
2. Investment & Savings:
The number of investment and savings app has increased owing to FinTech as many companies have now understood the fact that very soon customers will not be interested to visit any physical branches hence more of the companies are switching so that they can reach the customers easily through their mobiles.
3. Cryptocurrency & Blockchain:
The birth of cryptocurrency and blockchain owing to digital technology when integrated with FinTech allows you to gain the advantage of both. For example, trading software like the bitcoin profit has a dedicated app that helps you trade automatically hence this is a perfect example of how cryptocurrency in combination with FinTech can double your profits.
4. Machine Learning & Trading:
As discussed above, owing to FinTech, algorithms used to develop trading software with the help of machine learning can run a massive amount of data and give you results of the trading trends based on the huge data from the past and this prediction can be very useful for any kind of financial trading.
The insurance industry is partnering up with FinTech companies to automate their finance process. Though this industry is a big one in itself, the industry is starting to step towards tech advancement now.
Digital money transaction is the most common usage of FinTech as the governments of various countries are encouraging its citizens to go cashless and online payment options have widened so much that you do not have to think twice about shifting towards it.
FinTech makes the entire process of applying for a loan and its approval digital. This has helped in speeding the process so that the customer need not wait for a long time for the loan to get approved. FinTech has made the entire process so transparent that the increase of trust has led to an increase in the business.
FinTech may seem new to you, but in reality, it has been around since 1950 when the credit cards were introduced. In the past few years, FinTech has spread across various finance applications and the trend will further continue in the decades that follow.