Reviewed by Aug 16, 2023| Updated on
FinTech, as financial technology is usually shortened to, is a growing sphere where technology is combined in financial spaces to improve their efficiency and accessibility. They create real time and enhanced customer-provider connections and simplify financial uses and responsibilities. Examples of this include the development of applications for smartphones that aid in internet and mobile banking, cryptocurrencies, e-wallets, algorithms and platforms that keep watch on financial obligations like investing, etc.
Financial technology is the new financial industry, studies have revealed. Not only because of the benefits and ease of access, but also because of how easy, convenient and seamless the process of incorporating finance with technology is, for both the consumers and the providers. As a result, newer business models and ideas boom with the onset while also nurturing the pre-existing technologies. It’s reach is large for that reason.
But fintech is more than merely integrating technology. It asks the difficult questions and usurps existing systems by trying to see what hindrance there is for a consumer that prevents them from looking out for their responsibilities, or finding difficulty. This includes imploring transparency in operations in the likes of credit scores and such, while also enabling direct and prolonged reach for the customers after availing the service.
What fintech had been all along was an integrated bundle of services. This might have made availing services easier, but it made the process heavier. Newage fintech tries to unbundle them, much like outsourcing a function of the services they offer.
This unbundling also takes and decentralizes power. As a result of this, responsibility is distributed among various departments rather than one and only entity, and that enables easier processing of time of the request, the service and any customer help.
Fintech also includes the growing Big Data, Machine Learning and Artificial Intelligence aspects of the future. The application learns the habits and analyzes the behaviour, thereby working on spending time to develop analogies and applications to help keep check on spending habits and more.
Chatbots are an example of fintech.