Fintech Companies and Their Impact on the Banking Industry

Financial technology is the integration of computer science, information science and economics to develop financial products and services to substitute current banking systems. Financial technology is an emerging field that makes use of advanced technologies to enhance financial activities in finance. This new field has gained enormous popularity over the past few years due to its ability to deliver new solutions and reduce the cost of banking. The financial technology has also created many employment opportunities for professionals who have acquired basic knowledge on finance and accounting systems and are now involved in developing new solutions to common problems like investment management, banking and management of funds, and macro-economic and business activities. There are many issues that are faced by financial technology experts in providing solutions to business requirements and these experts have to work with various clients to provide solutions and avoid issues in future.

Fintech in India has gained tremendous importance in past few years due to several factors like increased disposable income, online transaction and faster execution. There is huge competition existing in the market for providing financial services and hence many financial service companies are adopting new technologies and investing lots of money in research and development. They are using IT infrastructure and software to provide financial services to their clients. The software helps to complete financial processes and provide the best possible results to their clients. Fintech companies are now targeting other countries such as UK and US due to lower cost of labor and better infrastructure. There is lot of scope available for growth and business expansion in this sector.

There are many issues involved in the financial services industry and fintech is addressing all the issues by introducing new and improved technology, using the latest software and introducing new and improved financial instruments. Fintech companies are now competing with the traditional banks and lending institutions. However, this competition has made both sides to come out with newer and better solutions. Moreover, there is a stiff competition existing between banks and fintech companies to provide their consumers with better products and services at cheaper rates. This has lead to the introduction of various financial products and programs in the market by banks.

Due to fintech companies’ rising popularity and increased profitability, the banks are offering financial services through various internet platforms. Many consumers have also started accepting online payments for their purchases through these websites. Internet has become an integral part of our lives and the internet has helped us save a lot of time and money by surfing various websites. Therefore, the internet has become a convenient source to purchase any product online and for getting any help online.

Apart from providing financial services, biotech companies are also offering healthcare solutions and human resources. Apart, from traditional banking solutions, new and modern services are being offered by financial technology companies. These include forex trading, health insurance, asset tracking and asset management, accounting solutions and stock trading.

Stock markets have been playing an important role in overall economic stability. As a result of recent economic recession, stock markets have declined drastically. However, with the introduction of biotech companies in the market, investors can now invest a considerable amount of money in the stock markets without much risk. The investors can use this investment money in buying and selling the stocks and earn profits out of it. As the fintech companies are introducing new and improved financial technology, there are numerous advantages of investing in them. These advantages include savings, safety, easy accessibility and simplicity.