10 Ways How Fintech Makeover is Reshaping Financial Technology in Businesses
Fintech, also referred to as financial technology, is today’s new era trend in mobile financial transactions. The ultimate goal of digital fintech solutions is to replace traditional methods of finance. It is a technological move pushing power in the hands of users to overcome trust issues and avoid any hassle taking place in the physical banking transactions.
With our lifestyle and finances evolving, it is the Fintech firms paving the way for placing digital payment solutions right on your palms. Today, you can have everything done on your smartphone, right from making an investment for the retirement to getting an insurance or loan, performing net banking transactions, doing online transfers, or dealing with payments related to buying and selling online. The way financial technology is moving, it won’t be surprising to see people avoiding to physically visit a bank in the future, but instead doing everything right from their mobile phone.
Digital currency not getting obsolete in the near future
Digital currency like bitcoin, Ethereum, and many more are gaining traction of small to mid-size businesses. Payments taking place via mobile payment solutions for digital currency are simply not reversible and hence it removes the fear of disputable payments or bounced checks. More importantly, digital currency helps in saving 1-5% of transaction fees imposed by popular payment processors.
Bitcoin is the preferred option for peer to peer payments
Bitcoin remittances are getting popular with leaps and bounds due to its great advantage. When compared to other peer to peer payment apps, bitcoin is highly affordable with fund transfer taking place in no time, from a few hours to a couple of days. This is the reason why bitcoin is being globally accepted by most online businesses.
Hybrid platforms supporting both global and cryptocurrencies
Today, there are multiple platforms offering hybrid solutions in the form of worldwide accepted currencies and cryptocurrencies at one single place. One such company is Wirex, helping customers to gain an advantage of payments in both currencies. Additionally, users can access their accounts without actually physically visiting the branch.
Robotic advisors with artificial intelligence at desks
Imagine, having robotic advisors offering automated financial advice based on your requirements, while sitting at desks. They are meant to simplify the financial management of investors through their intelligent investment recommendations. In short, they would be your future fund managers with customized services such as Ellevest meant for women investors.
Googling out financial information on financial search engines
AlphaSense is a financial search engine indexing research-based documents including clientele content, investment research on Wall Street, press releases, real-time news, presentations, transcripts and filings from a specific company, and many more. This is how a finance-based search engine can change the landscape of how users search for financial information on a generic search engine like Google. It would be interesting to see how such search engines filter out search results based on search queries.
Exchange-Traded Funds (ETFs) is here to stay for a long time
ETFs or exchange-traded funds have gained tremendous popularity in recent years. The reason why they are so popular are they strongly appeal to new investors, carry great diversity like mutual funds, are easier to manage, and cheaper to deal with. As an example, PureFunds are a wonderful ETFs option to invest in.
Lending marketplaces allowing for non-banking transactions
To avail loans, traditional banks are not the only viable option out there. There now peer to peer lending market places online, a platform connecting lenders and borrowers. If you switch on marketplaces like LoanBase or BTCJam you will see exchanges taking place between lenders and borrowers.
DLT is the thing and a sure shot future of Fintech space
Distributed Ledger Technology, popularly known as DLT, is a comprehensive database recording the payment transfer information and securing records of historical transactions. One of the biggest examples of DLT is the blockchain technology. Financial space has been redefined with the advent of blockchain technology enabling peer to peer transaction facility and a useful tool to track, transfer, and store information.
International payment transfer is no more a hassle
Sending payments across the globe has now become smooth due to Fintech financial services coming into play. Usually, sending money internationally is not just costlier, but an utter sluggish process to deal with taking days altogether. However, Fintech companies counter this with instant payments worldwide at absolute no fees or negligible fees.
Absolute control over one’s financial data with open banking
Open banking is set up wherein users are full control over their financial data without any bank intervention. In a physical scenario, when you are registered with the bank, the financial institution gains control and authority over your financial data. However, Fintech financial services offer open banking wherein users themselves are the ones getting all the privileges of accessing and controlling their own financial data.
What’s your take on Fintech?
Fintech can surely be referred to as the “Uber” of financial industry wherein you can expect new concepts coming out every now and then, with some of them already in the blueprint process. It is just a matter of time to see whether digital Fintech solutions will be taking over the conventional financial systems or not. However, one thing is for sure that the unconventional Fintech is going to eat away the traditional finance market in a lot of places.
For many, Fintech is a relatively narrow term. But in reality, Fintech is broader than one thinks of, encompassing a whole lot of technology within it. We have just provided an overview of what the peer to peer payment app scenario would be in the future, but it has more depth than one could possibly imagine.
Fintech does bring with it a lot of promises that cannot be overlooked. We have just scratched the surface but you never know what avenues Fintech can take users to consider the amount of potential it weighs. Nevertheless, Fintech became a talk among technology experts and users, since the time mobile transactions and payments came into play.
Article written by guest writer Nikunjgundaniya