Financial technology is the new technology and innovation, which aim to replace traditional financial instruments in the provision of financial solutions. It is a rapidly growing industry, which makes use of new technologies to enhance financial activities in finance. It has been designed and developed to make the financial instruments more efficient, customer-friendly and error-free. Financial technology has brought financial solutions and made them simpler, faster and more convenient for end users. It also enables easy management of risks, assets, liabilities, funding and investment among others.
In countries like US and UK, the pace of Fintech industry is increasing day by day due to its high returns on investment. It provides a great opportunity for startups to enter the global market as it is not yet saturated. Small entrepreneurs and start-ups can create their own niche in financial services without facing any sort of problems. As it is a disruptive technology, startups are provided with simplified and customized financial products with innovative technology solutions. Innovative financial services and products of the companies, which are based on fintech can be accessed through online banking options, mobile money transfer and real time high yield savings.
Fintech services have been customized and developed keeping in mind the preferences of different consumers. A number of consumer segments are attracting towards this segment, due to high degree of convenience, low cost and improved performance. Fintech companies are working round the clock to keep up with the latest trends in the market and provide consumers with a hassle-free mobile banking experience.
Some of the Fintech sectors that are making waves in the banking sector are: – Peer to peer lending, Credit unions, Crowdsourced lending, Insurance investment companies, Real Estate investment companies and Financial technology fintech. All these sectors have developed their own unique offering to the consumers. However, most of these services are being offered online and the consumers are able to choose the best one that suits their convenience and budget. Online transactions are highly secure and easy, as all the data is stored in the secure servers of the companies itself. Due to the high rise in demand for mobile banking, most of the financial services providing company is providing this service on mobiles.
The most attractive aspect about Fintech is that it provides cost effective solutions to the existing cash flow problem of the banks and other traditional financial institutions. The companies providing solutions to the fintech demand of consumers include banks, lending companies, money lending agencies, mobile money lenders, credit unions, and other financial institutions. As the consumers are moving from the traditional high street banks to the mobile banking option, the competition is increasing within the industry. Thus the banks and other financial institutions are always looking for better financial technology fintech firms who will provide them the best solution for cash flow and security.
Currently there are many players in the marketplace of Fintech. Some names include Xoom, First telecoms, MBNA, PLBC, and others. Some companies offer money transfer services and other financial products like loans through prepaid debit cards. There is a huge competition in this industry and therefore the price factor has also affected the pricing of these solutions provided by these firms. If you are planning to invest in Fintech then you must be sure of your requirement first. You must know about the specific requirement before investing in any solution provided by a fintech or traditional banking companies.