Financial technology is nothing but the latest innovation and development which aim to challenge traditional financial instruments in the provision of financial solutions. It is also an emerging market, which makes use of advanced technology to enhance financial activities in finance. Finance is a vast field having various components like investment, financial solutions, banking, financial markets etc. A lot of work is done in these areas for providing services to clients. Services are provided by stockbrokers, corporate brokers and chartered financial analysts. All these services are provided by various financial institutions like banks, building societies, consumer credit companies, insurance companies, private lenders, financial organizations and money lending agencies.
Fintech is also referred as Financial Technology or simply IT finance. Fintech companies provide a range of financial services such as portfolio management, asset management, estate planning and pension fund management, corporate bonds and corporate insurance, mortgage, insurance products and personal financial services. Many financial institutions are venturing into the area of Fintech. The success of these ventures depends on their expertise, technology and support services which are provided by these companies.
Asset Management and Portfolio Management play a vital role in providing financial services to customers and also acting as advisors in financial transactions. If any company fails to perform its duties properly, then it leads to financial losses. Asset Management helps in minimizing loss of business through timely analysis and is designing a strategy to minimize the impact on business. For this purpose, strategic planning is necessary which is largely involved in asset management. Portfolio Management helps in effective financial solutions by providing financial solutions to meet the diverse needs of large and small businesses. The main benefits of investing in Fintech companies are:
Automatic robo-advancing helps these companies to provide personalized service in all financial aspects which includes risk management, investment and financing, and asset management. The tools and resources provided by Fintech help in financial solutions that are faster, more accurate, and cost effective. The main advantages of investing in Fintech are: customer-centric approach, flexibility, performance enhancing services, and non-inflationary cost. Fintech companies work together with clients to understand their needs, and design financial products which will meet the specific needs of clients. Fintech companies follow their strategies and work towards customer requirements.
In order to receive money from an investor or customer, a bank account needs to be opened. Traditional banks work by sending requests to the customers or investors either through phone calls or faxes. Based on the request received, the customer is required to visit the local bank office or branch and provide documentation required to complete the transaction. This results in inconvenience and delay, which lead to bad business reputation. Fintech companies use state of the art technology which helps in online banking, mobile banking and e commerce transaction services which reduce the time, efforts, and costs involved in traditional bank accounts.
Apart from providing finance solution, Fintech also provides apps for mobile devices, online accounting and finance tracking. There are hundreds of finance and accounting apps available today that help customers manage finances easily. The top companies such as Intuit, Quicken Loans, SunTrust Mortgage, Bank of America and Wells Fargo have various apps for financial services which enable individuals to manage their finances effectively. These companies have apps for mortgage, loans, savings, investments, retail, student, health, travel, and car finance options.