You may have heard the word “Fintech” now, because everyone has. But some people really understand their meaning. However, while we say, “only a few people who know”, some people in the world have succeeded in understanding this phenomenon – because it changes and will soon change our habits, everyday life and our convenience ideas even more.
Financial technology
We have used what is called financial technology for a long time now.
You use the progress of the Fintech industry every time when you are:
Pay taxes through online accounts,
Go to Bank Online,
Or buy music on iTunes.
That’s because the extent of the use of technology in finance that it is difficult to explain exactly how Fintech works, but we will find out!
Fintech and Application
Let’s start with Fintech in the business field. Last year, the Fintech company received $ 17.4 billion in A.S. Itself, and the share of global income is $ 84 billion.
Of course, remember that we only talk about startup. If you add to the list of companies in one way or another connected to government institutions, the number is getting higher. So, what do these companies do?
Cryptocurrency and digital currency.
Blockchain technology, with a decentralization system.
What is called “smart contract,” which allows money and data exchanged safely without the help of third parties.
Insurtech – Technologies used in the insurance industry to streamline the process.
Regtec (Regulating Technology) – Technology that ensures fast and reliable compliance with legal regulations. They are increasingly popular now because various countries are actively introducing legal regulations for Fintech companies, which must be monitored to ensure they operate legally.
Robo-assistants are software algorithms that cover various types of investment advice for money that are far less than real advisors.
Non-banking services that offer services to low-income people who cannot, for one reason or other, get support from traditional banks or other financial companies.
Cyber security.
Fintech and the future
Modern technology has extraordinary potential that can be translated into a truly unexpected area. Therefore, it is difficult to say now what is Fintech in the future, but no doubt will continue to gain popularity among entrepreneurs and potential clients. Some new Fintech areas that have not yet appeared are ready to be evaluated by experts:
Markos Zachariadis, a professor at the Warwick Business School, believes that Fintech companies will work closer to the bank and can try to reform such banking systems.
This may seem strange, but the centralized government is very interested in using decentralized Fintech products such as Blockchain. The potential for its application for government structures is not limited.
Jim Rogers, one of the founders of quantum funds, promised that all countries would issue their own Cryptocurrency in the future.
One of the most logical areas of Fintech development is Mobile Banking. It grows the fastest in countries that have little involvement in the global banking system.
According to statistics from Raconteur’s financial publication, 32% of the solvent population in South Asia did not have access to the banking system at all.
Thus, modern Fintech companies help solve territorial problems in countries with low access to Fintech software development services, greatly simplifying the use of banks and providing residents with new opportunities.
