It seems like new avenues of business tech are opening up with each passing day. One of the major contemporary developments for businesses is Fintech, which is used by businesses from countless industries around the world. If you’re new to the concept or are curious as to why it’s on the rise, read on to learn more.
What is Fintech?
Fintech is a portmanteau of “financial technology,” and encompasses modern attempts to streamline and automate financial services. Investopedia explains that Fintech is used to positively impact businesses and their employees and consumers. The Fintech industry may seem niche, but it’s actually quite broad, with applications so vast that it’s now utilized on a daily basis.
Perhaps the most basic and well-known examples of Fintech are mobile payment software and apps. PayPal, Venmo, and Apple Pay all fall under the huge Fintech umbrella. Because these apps rely on technology and algorithms to transfer finances, sometimes without even touching a bank account, they serve as prime examples of Fintech’s impact on daily life for the common consumer.
Of course, Fintech isn’t just used to pay a friend back for lunch. In reality, payment software is just the tip of the iceberg, with innovations such as blockchain, cryptocurrency, and open banking lurking just below the waves.
Why Fintech Is on the Rise
The versatility and accessibility of Fintech make it popular with all sorts of businesses and organizations. In the world of real estate, Fintech enables efficient and effective crowdfunding, particularly for smaller real estate organizations. In addition, Fintech streamlines the entire real estate process, from purchasing the property to buying and selling to renters. Digital mortgages are yet another way in which Fintech can be utilized to offer technologically-advanced payment and investment options.
The banking and the financial industries see their fair share of Fintech. Due to the on-the-go nature of smartphones and payment options, Fintech offers a reasonable alternative that can streamline payment processes. Dennis Gada, a financial services expert and Vice President of Infosys, writes that Fintech is additionally useful because of its security measures. Credit cards and debit cards are relatively safe, but have security loopholes that Fintech software is able to thwart.
It’s not just industries that Fintech can interact with, though; other emerging business tech can intersect with Fintech, creating a blend of modern features that is undeniably powerful in any industry. Artificial intelligence powers almost half of large Fintech companies, offering background data organization and analysis to free up time for employees. The incredible versatility of Fintech is what makes it so attractive for businesses and so accessible for consumers.