Financial Technology has carried a huge impact in the finance sector.Â
Whether you’re a private investor, a company director, or you’re simply curious about the world of financial technology, keep reading to find out everything you need to know about FinTech today.
Fintech: What is it?
Overall, FinTech refers to innovative technologies being used in finance.Â
From mobile banking applications to cryptocurrency and stock trading platforms, it’s more than likely that you’ve already come across FinTech – whether you’ve noticed or not.
A few examples of practical FinTech applications include:
- Mobile payments, including Apple Pay
- Insurance and personal finance
- Budgeting apps
- Crowdfunding platforms
How has FinTech revolutionised trading?
Now more than ever, FinTech is being applied across various applications. Whether you’re keeping track of your own finances or you’re interested in learning more about CFD trading, FinTech is emerging on an unprecedented scale.
Even if you don’t have a budgeting app on your mobile phone, there are multiple popular uses for FinTech. Primarily, these include:
- Business to Client (B2C)
Personal finance apps like Venmo and PayPal allow customers to send and manage money via the Internet, and often through mobile technology. Initially, the banking industry focused largely on similar lending and payment services to these well-known B2C applications.
- Business to Business (B2B)
Before FinTech was developed on a wider scale, businesses would rely on big banks for loans and other financing methods. However, with the large scale arrival of FinTech, companies and their bosses can obtain loans and other financial services within minutes.
What are the benefits of using FinTech?
The benefits of using some of the newest, most innovative FinTech resources are widespread. For businesses and other corporate purposes, benefits include:
- Improved access to resources
FinTech companies enable businesses to process payments seamlessly. Combined with a low entry threshold, financial technology allows companies to efficiently work alongside vendors to form partnerships and find proactive solutions.
- Efficient data storage
Cloud-based platforms offer B2B services that enable business to interact with and manage their financial data, which can be extremely useful in reviewing and improving services.
- Optimised internal processes
It’s no secret that the use of Artificial Intelligence in the broader financial system leads to more efficient pricing and much more accurate, precise decision-making. Using the latest technologies gives businesses the upper hand when it comes to keeping up with global competition.
- Improved retention rate
In the finance sector, FinTech services often aim to deliver a customised user experience. Ease of use is one of the biggest potential selling points for a wide array of companies, so by giving customers an improved buying experience, companies naturally earn higher retention rate.
Final thoughts
FinTech is becoming one of the most vital components for a thriving financial sector.Â
If you have any thoughts or experiences with technology in finance, why not share them in the comments section below?
