Fintech – The Growth of a New Financial Technology Industry
Financial technology is the new technology and innovation which aims to counter traditional financial instruments in the provision of financial solutions. However, it is an evolving industry which makes use of new technologies to enhance financial activities in finance. It is a system of financial instruments and tools developed to facilitate better decision-making in banking. There are many types of financial technologies like computerized systems, trading, online transaction and other financial tools. This article highlights the main benefits of using financial technologies.
The main benefit of using fintech is that it helps to make financial services more convenient and speedy. It has made possible the faster processing of cash, settlement of liabilities, transfer of fund among others. As a result, customers have improved financial services like online banking, card transactions, personal loan, etc. Thus, the overall productivity level has increased tremendously.
The growth rate of fintech has been very high. There has been a marked improvement in the efficiency and quality of financial service delivery. Today, banking sector employs about one million people. The number is expected to rise in near future also. Financial technology companies are growing rapidly because of the large scale of banking industry.
Another major benefit of using fintech is that it saves a large part of overhead cost for banks. This is because most of the financial institutions do not have a dedicated financial technology department. Therefore, a lot of time and money is saved by them. Moreover, a large number of transactions takes place each day. This process is also simplified because of the use of computerization, software and other technological advancements.
Fintech startups provide a good platform for budding entrepreneurs. These startups help financial institutions to gain an edge over their competitors in terms of providing best financial services at lower costs. Fintech startups are creating a demand for professionals in this domain who can provide better services at lower costs. The competition between banks is increasing and with this, they are adopting sophisticated techniques that are difficult to implement in the past.
A lot of Fintech startups are planning to offer online solutions like paypal. PayPal is a secure payment gateway that allows your customers to send and receive money securely through your website. Many small Fintech businesses are providing PayPal accounts to their clients. This is because Paypal is working smoothly along with most of the banks. So, if you are planning to start an ecommerce business then you should definitely look out for a good Paypal partner.