How Fintech Companies Has reshaping the Banking Industry
Financial technology is the latest innovation and technology, which aim to combat conventional financial procedures in the provision of financial solutions. It is also an emerging market, which makes use of advanced technology to enhance financial activities in finance. A number of companies are involved in providing financial software and services such as online banking, loan management, investment facilities etc. There has been a considerable rise in the number of companies offering financial products like financial solutions, financial software and investment products. The growing importance of finance in our daily life has prompted various companies to come up with new and innovative financial products and services to meet the day to day needs of customers.
This is nothing but a form of money transmission using the internet technology. Financial institutions and other businesses have started to utilize this technology as it enables them to manage their financial transactions. Many banks have started to provide services that are rendered through fintech such as trading, bill payment, cash withdrawal etc. Even small and medium scale businesses can take advantage of this revolution and can start adopting the latest technologies to reduce financial costs. Even the government has started to provide assistance through the funds made available through grants. This has made the adoption of fintech much easier for people and businesses.
Financial technology refers to online or offline systems that enable financial institutions and other consumers to manage and process their financial transactions such as bill payments, cash withdrawals and other financial needs. The main aim of every company involved in providing financial service is to provide customers with a high level of service and customer satisfaction. The introduction of the internet technology has enabled financial institutions to process and manage their clients’ transactions electronically. There are various advantages of adopting fintech and here are a few of them.
The most important advantage of fintech is that it helps consumers in reducing the cost of handling cash by a significant percentage. Most of the transactions are generally performed through the use of debit cards, credit cards and electronic checks but consumers still need paper money for everyday purchases. The reduced cost of operating and maintaining traditional banking methods means that banks have to pass on the reduced costs to consumers. Moreover, financial data can be protected very easily when the transactions are carried out through fintech companies.
A further advantage of fintech is that it reduces the risk of errors during money transfer. The traditional banking system makes use of various computer programs for managing and processing all financial transactions. However, the traditional accounting processes involve human error that might not be controlled. Moreover, there are chances for the customer’s account balance to get doubled or even tripled during the transaction.
Apart from these advantages, fintech companies have improved the speed at which transactions are processed by a significant percent. Apart from this, customers also tend to enjoy more personalized services such as obtaining their personal bank statements, spending reports, budget planning, etc. from traditional banks. Apart from all these benefits, one can also deduct a certain percentage of their annual income through the various banking options available today.