What is Fintech?
Fintech is technology in banking or Financial Services. We can add technology to banking services by codes or other computer programs. The word Fintech is a synonym for Financial Technology. Fintech Industry is a combination of Finance and technology. Fintech firms are the new age firms. These firms are combining Technology with Finance together. Which is producing Different types of financial services. The QR Scan or digital lending platforms are broad examples of the most demanded financial Services.
Different angles of technology such as Artificial Intelligence, Cloud Computing, Blockchain, and others, make banking and finance Fintech. Financial services are getting more accessible to people due to the introduction of Fintech. Fintech is going to devastate and make a boom in 2023. There are three main segments of Fintech namely saving, Investing, and processing of loans.
Major categories of Fintech are listed below:
- The service of payment
- Digitally management of wealth
- Digital lending of money
- Consumer Banking
- Digital leasing
How does fintech actually work?
The product and services vary from fintech-to-fintech industries. Day by day fintech companies are advancing at an exponential rate. The machine learning algorithm, Block chain scheduling and data science are advancing by 2023.
Speedy increase in the fintech industry holds concern regarding cyber-Security. The growth across the globe is high and this is becoming a target zone for Cyber-crime criminals. Fintech is becoming vulnerable at the cost of security. Fintech is working rapidly by instilling technology into Financial Service. Financial services at fingertips have really changed the sphere of the universe. Fintech is the instant future of banking and financial services.
Guess of a scenario, that you are not visiting a bank and completing your bank related task. While you are sitting at the comfort of your couch. Isn’t it pretty? This is similar to having a tricone ice-cream on a wintry day. The loans, Withdrawal, Money Deposit, Cheque leaf, and other facets of banking are going to come on your phone screen. No more lines into banks, no more token system, Everything just on your phone screen. Fintech has the technology which is disrupting the market. The emerging start-ups are taking the place of Traditional banks and Financial Institutions across time and geographies.
Below are the mentioned important characteristics and traits of Fintech:
A Sight to Mobile Banking and Neo banking
Mobile banking is becoming the target centre for all new fintech start-ups. When the globe is changing with demand for technology. Everyone of us is in need of an easy banking facility. The expectations with the banking apps and newly born start-ups are innumerably increasing. Even the traditional banks are offering the facility of mobile banking through applications.
There are few Neo-Banks which are coming into the race. They do not have any physical branches like traditional banks. But these Neo banks are providing all the facilities similar to those of traditional banks. Neo Banks are creating digital Infrastructure which is more abundant than the physical infrastructure of Neo Banks.
Fintech Regulating Cryptocurrency
Fintech is a platform where the blockchain and cryptocurrency are merging. This merger is so successful that it is going to clinch the industry by the end of 2023. In the year 2022, there were so many crypto trading platforms. This is a vivid example of blockchain and decentralized exchange. Here the database is in parts from user to user. A well-distributed form of Database.
The interim feature of Crypto wallet is sprouting the demand of crypto. Everyone aims to have digital currency. It is safe these days. Fintech start-ups are using the concept of Blockchain for money exchange and money lending platforms. Blockchain is mainly for identity making curriculum in these fintech applications and software.
The phenomenon of Machine learning and trading
The most important part of financial grail is to learn the language of machines. So that you can work more efficiently than them. The understanding of trading and learning machine language is becoming the basis of Human’s life. Data Algorithm works on massive flow of data. It is enhancing and regulating rapidly.
People are configuring risk into trading. This act is bringing a large set of users to the application with the aim of tremendous growth. To keep a better understanding of all will give a better result throughout.
Payment fintech is working with the technique of cash flow. Here the online transaction is capacity building for the fintech industry. You must have heard about: Pay later, Post-paid, Pre-paid. There are examples of payment Fintech.
It is much easier now to send money online and invest in something or you can do shopping. The cash flow has rapidly built the growth branch of payment fintech. Slowly it is becoming the need of Day today. Payment companies are becoming more popular these days.
Lending and Insurance Fintech
Fintech has made a huge space in the globe. People are so dependent that they want to get everything at ease and comfort. From the expiry of Insurance to taking loans. There are several services which are providing you the facility of getting insurance on mobile applications. Insurance services into phones have revolutionised the fintech globe.
You can apply for loans by sitting at your home, with organised effort. You have to upload a few documents and get it validated from the fintech companies. Loans are easy to procure like this.
Introducing some Fintech trend in 2023:
- A wallet for Digital Currency
- Blockchain Identity method in Fintech
- Embedding each level of finance with codes
- Serving need to maximum population
Fintech is bringing revolution in the year 2023. Among all business growth, Fintech Industry is grabbing market faster than other businesses. It is expected that fintech would break all markets in itself. Above mentioned fintech trend has enormous capability in expansion of business throughout. Fintech Industry growth in 2023 is worth the time and glace has already been witnessed in prior years. A year which will be ruled by fintech based start-ups.