Over the past few years, many complex concepts like data science, artificial intelligence and cryptocurrency have received wide fame. A lot of industries have understood the brilliance and usability of these concepts and have started incorporating them. One of these industries is the financial industry. Fintech is basically financial technology. It is the use of revolutionizing concepts in the financial industry.
In fintech, companies use different software and programs to provide automated and efficient financial services. Everything from mobile investing to cryptocurrency can be attributed to the progress in the fintech industry. This technology has extremely improved the financial industry.
The established banks have observed this change in the industry and incorporated these features into their existing products. Fintech has made banking for businesses and customers quite convenient. As compared to traditional banks, fintech startups are more efficient in fulfilling their customers' demands.
Some of the most preferred uses of Fintech are:
1. Banking:
Mobile banking has become a massive part of the fintech industry. Customers can now easily access their finances through their phones with the help of fintech.
2. Investments:
Fintech has completely changed the way people invest in the stock market. A lot of investing barriers have been broken down with the help of new trading platforms. There are a host of applications available which can easily aid the investment process.
3. Cryptocurrency:
Concepts like cryptocurrency and blockchain when combined with fintech, can deliver whole new kind of financial services. Tesla, although have rescinded this, once offered to receive payments for its products in cryptocurrency. There are also a host of websites out there who use cryptocurrency for transactions.
4. Payments:
The process of transferring money around has become effortless with the help of fintech. With the help of a payment app or platform, you can transfer funds to anyone with just a few clicks. The likes of Flutterwave and Paystacks currently thrive in this space.
5. Lending:
This industry is increasing the approval process and making the process of lending easy. Anyone from around the world can apply for a loan from their mobile devices. The new data points, functional risk models are providing credit to remote locations. This form of unconventional lending has eased off the stringent standards for getting a loan.
What is Fintech?