Fintech, or financial technology, is changing the way we interact with our money and spend it. Fintech has already made our lives easier in so many ways, from making it simpler to transfer money overseas to helping us save for a house deposit.
Some people are wary of fintech because they think it’s a new phenomenon. But Financial Software development services have been around since the first computers were used for financial calculations in the 1950s. The term ‘fintech’ itself was only coined in the 1980s and 1990s, suggesting that fintech is a new idea. But fintech is advantageous for businesses for a long time now, with the rise of credit cards, ATMs, and online banking all being part of the fintech revolution of recent decades.
Fintech is constantly evolving and it’s taking our relationship with money to new levels. Here are some benefits of fintech that you might not have considered:
Accessibility – many fintech tools and platforms allow users to invest even with lower amounts; some even do not require a minimum balance. In addition, they allow investors to access shares from companies all over the world.
Transparency – different platforms allow their users to check live share prices which enables them to check the value of their investment at any time. These platforms also offer market data for free, unlike brokers who often require account opening or minimum trading volumes to provide such service.
Automation – By automating processes such as application forms and payments, these fintech platforms help free up time for customers.
Speed – Fintech products and services are usually focused on one specific task or process. This means that they tend to be faster and more efficient than traditional banking products, which encompass a wider range of functions.
Ease of use – The user experience is a key focus for fintech companies. They tend to build their services for digital channels, rather than adapting traditional offerings for online use. This makes them simple and intuitive, often with online chat or phone support available 24/7.
Cost savings – Fintech companies don’t need to invest in expensive high street branches, so they can pass the cost savings onto customers through lower interest rates or fees.
Innovation – Start-ups are constantly innovating and experimenting with new technologies, such as artificial intelligence (AI) and blockchain. And because they’re not confined by regulations or legacy systems, as traditional banks are, they can move quickly and adapt their products to meet emerging customer needs.
Low-Cost Operations – FinTech has resulted in low-cost operations due to the increased use of technology. This has resulted in reduced costs for both financial institutions and consumers. Online operations have helped in reducing overhead charges and labor costs.
Faster and Efficient Transactions – FinTech has made transactions much faster than before as it enables real-time transactions. These are executed within a few seconds irrespective of the geographical locations of the parties involved in the transaction. Transactions can be performed 24×7 through online platforms, hence adding convenience to customers’ lives.
Greater Convenience – FinTech provides greater convenience to customers by enabling them to access financial products at any time of the day or night from any place with an internet connection. Customers do not need to wait in lines or spend hours completing paperwork to complete their transactions as they can perform them sitting in their homes or offices without any hassle.
Competitiveness: Fintech companies can develop new products and deliver them at a rapid rate due to their minimal legacy systems and legacy systems. Traditional financial institutions can adopt these new technologies to improve their competitiveness or risk losing market share to fintech companies.
Better decision-making. Fintech uses artificial intelligence (AI) to collect data on consumer behavior, which banks can then use to improve their products and services.
Improved risk management. Banks use fintech software to reduce fraud and cybercrime by detecting unusual activity in customer accounts.
All in all, fintech is bringing big changes to just about every sector of the economy, and all of these changes are for the better. Every new technology has its share of setbacks, but it’s important to keep things in perspective. The good news is that fintech is here to stay and change our lives in all sorts of ways.