Financial technology is the new technology and innovation which aims to contend with conventional financial procedures in the delivery of funds. It is also an emerging industry which makes use of advanced technology to enhance financial activities in finance. With an aim to make financial transactions more convenient, faster, secure and error free, experts are coming up with many solutions and tools. They are also trying to provide cost-effective, highly useful tools and systems for better management. This article highlights many such tools and applications.
Financial companies or Banks provide financial services through a number of channels like retail trading, online banking, online buying and selling, mobile banking etc. Financial firms also use the power of internet for various other purposes, for instance for managing their customers, customer servicing, marketing etc. There has been a trend of convergence between traditional banking and financial practices, especially for small scale consumers. Consumers have begun interacting and sharing their views about their day-to-day financial activities with their peers. This has led to a shift in the way people view traditional banking procedures and services.
Applying fintech in various channels has proved beneficial for both consumers as well as financial institutions. Most consumers are now opting for apps rather than the traditional book keeping records. This is because the usual issues of duplicate entries, wrong data entry, irrelevant data entry and wrong entry of information have been sorted out using these apps. Some of the most popular apps include BankTec, MYOB, Kabbage, Clearpool, TrustedID, GE Finance, Xoom and Quicken.
Another significant change that has come up with fintech is in the way these companies provide financial services to individuals. Earlier, only large financial institutions or banks used to open up these businesses. But now, smaller startups can also opt for this technology. Some of the startup banks such as Better Business Bureau, FDIC, tech investors and venture capitalists are investing a lot into these startups in order to make them successful. This has resulted in a more transparent environment and increased competition among banks and other financial institutions providing fintech solutions.
As mentioned earlier, most of the time, Fintech starts by providing cheaper financial services such as online banking and shopping cart integration. However, as the leader in the sector expands, these services start getting enhanced. In addition, some of the big players in this sector like Bank of America, Discover Financial and Wells Fargo have already started integrating artificial intelligence into their systems. So, apart from providing financial services, Fintech also enables consumers to make use of its numerous other features.
Leading companies providing fintech services have introduced new innovations in order to increase profitability and to bring value to their customers. For instance, one of the biggest challenges for traditional financial companies was the challenge of maintaining customer relationships. Now with the advent of mobile banking and the internet, they are dealing with customers that are not only using the internet and mobile phones but also interacting through social media sites like Facebook or Twitter. This has completely changed the way that they look at customer relationships.