Fintech- A Big Thumps Up
A lot of buzzes is being created by a number of new concepts in the field of Business and Finance. The credit does go to FinTech. FinTech or Financial Technology is a new method of using digital technology in the area of business and finance. It ranges far and wide from digital smartphones to cryptocurrency. FinTech is a modern outlook to the traditional approach of banking, trading, etc.
Categories of FinTech
- Lending: People are able to buy money from banks or apply for loans on a much faster scale. Direct contact between the bank and the consumers lead to an easier and faster lending process leading to a better banking experience
- Payments: Payments are done between people among themselves rather than relying on a bank to do it. Companies providing FinTech services have facilitated the process of money payments online rather than tedious procedures in the bank.
- International Money Transfers: They are the most time consuming and expensive kind of money transfer. Companies are charging up to 6-8% interest in the process of transferring money across countries. Doing it online in FinTech helps the consumers in multiple ways. Companies do provide special software technologies to complete International Money Transfer.
- Personal Finance: Any advice personally regarding investments, shares or loan can be requested directly from FinTech companies by the customer. There is no need to feel insecure and unsure about the investments when professional advice is provided by FinTech.
- Consumer Banking: Companies provide basic customer services by not only waiting for customers to reach them, instead they reach out to the consumers on what their requirements are, trying to provide relevant solutions.
- Insurance: Insurance policies with strict policies do tend to give customers a hard time. Companies providing FinTech do tend to associate with insurance companies as security is of high relevance.
There are a few technologies that provide FinTech
- Cryptocurrency: Digital currencies for safer transactions.
- Bitcoin: A kind of cryptocurrency usually used in trading.
- Blockchain: It is the database that keeps track of all cryptocurrency transactions.
- Robotic Process Automation: It is a new technology where robots are used for trading shares in place of humans.
Technology has a pivotal role today in Finance. Once we use it to our advantage to do our day to day banking ventures life does become easier and more secure.