Fintech refers to ‘Financial Technology’. Technology is definitely a part of our day-to-day lives. Use of tech in financial world is on rise with every passing year. According to a report by Ernst and Young, 65% consumers use some kind of fintech as of 2019. This number was only 16% back in 2015.
Even if you are unaware of fintech trends, chances are you might’ve used it somewhere. Whenever we pay from credit card at a supermarket or simply load Uber credit from our credit card, it all comes under fintech. Fintech is the new buzz word these days but the technology has evolved over couple of decades. Future is looking bright for fintech as big names like JP Morgan and citi have invested generously in fintech startups. This is surely success for the emerging industry.
The major reason fintech is growing popular among the existing traditional banking system is the ease. With online banking and smartphone apps, all your information is one-tap away which in the other case, would only be available after waiting in the queue to talk to bank representative. This has proven to be beneficial for consumers as well as bankers. Other than generic tasks like depositing a cheque or moving money around, there are some apps available which could help you in managing and investing your finances. These apps use algorithms which could suggest investment plans etc. without interaction of with humans. Furthermore, Machine Learning and Artificial Intelligence are making its way forward in fintech by predicting the flow of market.
How safe is it?
Its true that the world is inclined towards faster and efficient ways to do tasks. But one thing which makes people hesitate in this pursuit is safety. The hesitation is there for the right reasons, especially after a number of high profile online frauds. Safety of these platforms are still under observation as the market is adjusting to new technologies like blockchain and new security challenges.
What does the future hold?
Like all other sectors, fintech had its own fair share of setback owing to the pandemic. But things are looking good in the future as more and more industries are relying on fintech. This means that opportunities for it are rapidly increasing in years to come.
Furthmore, with the inclusion of cryptocurrency and cutting edge technologies, traditional banks are looking forward to collaborate with fintechs to move ahead. Considering this, it is safe to say that future of fintech is bright!
