Age of Fintech | What is Fintech? Know more about its benefits..

The term Fintech means ‘ Financial Technology ‘ . Fintech refers to the integration of technology into offerings by financial services companies in order to improve their use and delivery to consumers . It primarily works by unbundling offerings by such firms and creating new markets for them. Fintech also includes different sectors and industries such as education, retail banking, fundraising and nonprofit, and investment management .

Working of Fintech –

Fintech basically sinplifies the financial transactions for consumers . It makes them more accessible and generally more affordable . It can also apply to companies and services utilizing AI, big data, and encrypted blockchain technology to facilitate highly secure transactions amongst an internal network. Fintech strives to streamline the transaction process, eliminating potentially unnecessary steps for all involved parties. The massive growth of fintech companies and marketplaces on a global scale has led to increased exposure of vulnerabilities in fintech infrastructure while making it a target for cybercriminal attacks. Luckily, technology continues to evolve to minimize existing fraud risks and mitigate threats that continue to emerge.

Technology in Fintech –

AI is having a major impact on the finance industry as part of fintech. AI is being used to analyze investment opportunities, optimize portfolios, and mitigate risks, among many other functions. Blockchain is a special type of database technology that allows all the participants in a transaction to see the same data at the same time. Blockchain is changing the way business is done in the investment industry and has the potential to boost trust in the system by improving transparency. Also IoT, security and cloud are well defined and widely implemented already in most financial institutions.

Benefits of Fintech –

Fintech provides greater flexibility and accessibility . Through fintech, companies are able to make payments and other financial transactions easier for their customers. Users can easily submit their applications to open an account which results in more and more users opting for institutions that have FinTech implemented for their financial operations.Financial institutions gain efficiency in the processes through automation and customised implementation of FinTech as per the demand and nature of the business operations. FinTech makes operations and processes easier and faster for financial institutions. Simultaneously, it also delivers a very convenient experience to the users. Due to this, adapting the FinTech solution for your financial institution is going to be a win-win and will take you to new business heights.

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