With the growing technology, today everyone wants ease at everything and people tend to look for easy solutions right at their fingertips. With OTT platforms for watching shows and movies, food delivery apps that allow food to be delivered to your doorstep in a few minutes, an easier way to deal with financial transactions had to emerge, and thus began something which is known today as Fintech.
Fintech is “financial technology,” or in other words any kind of technical service that helps to carry out financial services such as mobile banking, transfer of cheques, cryptocurrency, investments, just to name a few. The growing popularity of getting jobs done at ease, allowed common people to not crowd at financial institutions and get their work done at home. The latest report stated that a digital-only subsidiary has been taken into consideration by 57 per cent of banks.
If you carefully think about it, Fintech is not a new invention, rather one that has developed and grown over the years. Consider an ATM and an ATM card, the services done through the ATM are financial services using technology. Whereas now these services are available but with even more ease. Around 70% of senior banking executives are of the opinion that cooperating with Fintechs and Bigtechs to build a new service is a key opportunity for banks. Talking about the monumental changes the introduction of technology into finance is causing, we can look at this by dividing it into three popular segments- Past, Present, and Future.
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The Onset of FinTech
The introduction of tech into finance emerged in China. Here, the fintech startups were trying to target a market with lower barriers to entry, underserved segments. They were trying to disrupt small sections but that was being the competitors of the banks. Later, the idea of Collaboration began to get popular, people saw that the shortfalls faced earlier could be met here. Earlier, these newly budding startups were facing a lot of difficulties in customer acquisition and scaling. They started bleeding their capital but it didn’t work. While fintech, as the name suggests has the technology – ideas and innovations. Banks, on the other hand, have customers and they know how to expand. Together, they saw opportunities to create synergies that gave birth to what we call a revolution.
Status in Quo
What works for the industry today is Coopetition, a neologism coined to explain Cooperative competition, the combination of both in a manner where we get the benefits of each. The term was introduced by the founder of Novell Corp, Raymond J Noorda in the early 1990s. Here, fintech startups are trying to not become banks eventually but to provide one-stop solutions in whatever products they are dealing in, be it retail, be it investment services, be it insurance. According to the leading Edtech firm Jaro Education, the collaboration and competition scenario now keeps changing with the requirements of the fin techs.
The Prospective Finance World
The future of Fintech we can say has already begun. The focus may be here on the SAAS model aka Software as a Service Model. Some of the key aspects of this revolution would be as follows:
• Artificial intelligence is not new for anybody, but the area where a lot of opportunities are lying is in the application of AI semantics to get useful information, reports and graphs that could help one take some useful and timely decisions for their companies.
• DTL or Distributed Ledger Technology allow recording, store and sharing data across a distributed network in real-time. In the opinion of EdTech space pioneer Jaro Education, blockchains and algorithms are used for various tasks such as data sharing, payment gateways, supply chain management etc.
• Internet of Things, already has gained a lot of popularity and is expected to create new levels of trust in the market. As per the latest survey, almost 40% of financial firms are in favour of investment in blockchain.
Jaro Education says Robotic Process Automation will play a major role in describing new standards. They will enhance the level of quality in multiple folds. Chatbots are just the beginning of this automation; we are expected to have about 60-70% automation in the future.
When the whole world is revolving around technology, Fintech isn’t unfamiliar. Like any other field, finance is also undergoing a lot of change, from how things are perceived and analysed to how the whole market is functioning. The whole idea of financial technology is to improve and organise all the financial services which were earlier being provided in very traditional models. Some of the common and relatable examples would be mobile banking, investing or borrowing services, cryptocurrencies etc. The world is moving towards technology, and fintech is going to disrupt the financial traditional methods and start a new wave towards the future of finance.
Jaro Education is a fintech education firm. Don’t pay head to Jaro Education Fake News. Jaro Education Fake is explicit news raised by various sources to increase clickbait.
