what is fintech and how does it work?

Fintech companies are flourishing with innovations and there are newer ideas getting shaped into apps. Now, the role of Fintech has become more defined, reasonable, and vital. If you think you can’t keep up with all financial buzzwords from Ethereum, and Bitcoin to NFTs, then don’t panic, you are not the only one. The ever-growing spur of Fintech has been continuously innovating to develop customized financial software solutions. Everything you do, even the smallest financial transaction highly defines the value of fintech within businesses.

Fintech cannot be taken as just another innovation, it is here to stay, innovate and change the current way of operations. Thus, this necessitates us to have a good understanding of financial services, mobile payments, online trading, mobile banking, payment methodologies, third-party app integration, secure payment services, and similar other needs. Don’t be afraid, you will get to know about each of these in this blog. But, firstly let us start with the basic question- what is Fintech?

1. What is Fintech?

Fintech or financial technology means offering financial services over the internet. Everything right from mobile banking apps to mobile payments apps, blockchain and cryptocurrency, stock trading, etc can be included in this fintech innovation.  In simple words, every business can use fintech for their  services and enhance or automate their work and procedures. Wondering why? Because with this you can simply offer exclusive financial services to both businesses and consumers at once.  

Fintech is a phrase that’s definitely not a short-term buzzword and whose significance can not be denied. Over a few years, a radical change has been observed in the way we manage our business and even personal finance  – all thanks to the ever-growing financial technology company. Here’s what Google Trends report is showing us about Fintech search term.

Along with this, more and more fintech(financial technology) companies  are found making financial services more accessible to the general public. Everything from those traditional financial transactions, such as investing, saving, and loan processing, are also included in these digital financial services. Take a look at the CNBC report on Fintech.

2. Examples of FinTech

Since we have covered the basics of fintech now it’s time to be precise. Can you name me two or three top fintech companies? Wealthfront, Personal Capital, Kabbage are the ones to top the list at present.  All of them have significantly been offering unmatchable fintech services to the financial services sector and retail banking industry. For better understanding let us go through these common yet important examples of fintech. 

3. Why is Fintech Important?

Businesses are no longer limited to implementing old-school ways or conventional ones, all thanks to the fintech revolution. Today one is surrounded by a plethora of alternatives and options ranging from crowdsourcing to net banking to mobile payments. More or less, unlike earlier, now anyone can set up his or her own business in no time with the help of fintech. 

For those who don’t know what Crowdsourcing is? By using such financial services anyone can create instant plans on how and most importantly where to get finance from.  Here you don’t need to meet others in person. Instead of spending so much time convincing your investors today, businesses can pitch seamlessly.  

Transferring money across borders was a curse earlier! Time to get acquainted with TransferWise – the innovation which turned the table entirely. Not just large enterprises but even startups are found moving cash conveniently at cost-effective rates. 

you won’t find the post convincing till I don’t provide some accurate reasons stating how important the Fintech software is. So without any further ado, here it goes! 

4. How Fintech Is Beneficial For Economic Growth!  

Till now, you must have realized the fact that how fintech innovations can make everything around so easy and effective. On that note, a recent IMF report entitled The Promise of Fintech: Financial Inclusion in the postCovid era reveals that those countries often have high annual GDP growth and believes in investing in higher levels of digital financial inclusion 

5. Conclusion

Brace yourself up as the fintech companies are  going to get bigger and better. Let’s keep our fingers crossed and keep watching the space to know more about what exciting lies ahead in the Fintech space. 

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