Financial Technology or Fintech is the foundation of the global economy and considered one of the fastest-growing sectors. Often regarded as a fourth industrial revolution, is reinventing the boundaries of the financial field supported by booming economic growth, increasing population, a profusion of technical knowledge, and entrepreneurial spirit of young intellectuals. Glorifying the visible digital upheaval in the financial service sector, the financial industry is majorly concerned about accepting the technical innovations profoundly. Emerged as an effective solution to satisfy the largely digitized customers of today’s generation, Fintech is eliminating all the limitations of traditional financial services institutions. Quite an intricate term to understand Fintech is often concluded as a new financial industry which is adopting innovative intuitions and technological advancements to enhance financial activities and business models.
Due to the intervention of internet Fintech is developing significantly and expected to bring more novelty to the financial service sector. Still in an embryonic stage Fintech is referred as a trend of future due to a sophisticated range of services provided by it, some of which are mentioned below:
- Financial Transactions: Now that the transactions can be done in a single click by our smartphones, digital wallets, cashless payments, and contactless payments are currently in craze. The use of cryptocurrency and tokens is surfacing as a demographic way of managing currencies and turning paper money into an older concept.
- Platform as a Service (PaaS): Based on cloud computing, PaaS ensures readymade solutions to the customers by adding customized developments for client satisfaction. Delivering third-party solutions to Fintech sectors, PaaS vendors are handling services on configuration, budget planning, resource management, credit risk management, billing, payment processing, and client services.
- Virtual Assistants: Advanced AI has taken digital assistants to a new level. Replacing humans by robotic voice and chatbots, virtual assistants are now solving queries related to bank operations regarding loans, payments, and savings accounts.
- Automation: Key to the developing Fintech sector, automation has brought a plethora of benefits such as faster service delivery, higher customer satisfaction, high returns, and stronger financial growth.
- BlockChain Movement: Though it is facing some legal issues recently, it cannot be ignored that the arrival of cryptocurrencies shook the financial world. Highly appreciated by millennials, virtual currencies are being considered by some of the financial institutions for money transfers, loan payments, and investments.
- Digital Banking: Getting all the bank related solutions with a single click is majorly affecting today’s world in a positive way. Giving a personalized approach, more freedom and delivering services at a faster pace, digital banking is gaining popularity by attracting more clients than banks having brick-and-mortar outlets.
- Cyber Security: The last factor but bearing most significance, cybersecurity ensures protection from theft and loss of financial properties, malware attacks, hacking, and data tampering. Addressing these issues effectively, biometric technologies such as fingerprints and iris scanning contribute significantly to averting frauds and money laundering.
Powered by Artificial Intelligence (AI) and Machine Learning (ML), Fintech is going to dictate human lives in the near future. This major upheaval will demand the application of digitization for a better client-oriented approach and provide extraordinary services in the business sector. Rising as a steadfast solution to this technological revolution Fintech is going through major renovations and emerging as a trend from the future.