Financial Technology in short-Fintech describes the business that aims at providing financial assistance by making use of software and modern technology. Over the past decade emerging technologies, paired with massive changes in rules and regulations, have driven an unprecedented transformation of finance around the world. Fintech initially begun in the traditional financial sectors mostly used by financial institutions. But later on start-ups and other private firms started using these services which in turn disrupted the old and traditional practices of the financial industries.
How Fintech is helping small scale and new businesses?
In case you wanted to start a business, you would go to the local bank for a loan or look for traditional investors. If your company wanted to accept payments through credit cards or cashless you would probably need bulky equipment and credit providers. Hence features like crowdfunding, mobile payments and money transfer services has revolutionized the way small business accept payments. Thereby Fintech has made it easier than ever for a start-up to go global and ease business payments.
Fintech firms have realised that financial services of all kind including money transfer, investments, payments need to seamlessly integrate with the tech savvy costumers of today to remain competent and relevant in a surrounding where private life and business are altogether getting digitalized. New technologies such as artificial intelligence, big data and machine learning are a boost to these Fintech companies as it helps in predicting the behaviour of the costumers hence assisting them in financial decisions.
Companies engaged in social media, e-commerce and telecommunication as well as start-ups and large data centres are competing against each other and remaking the industry. Finally Fintech is still in its budding stage and in the near future businesses will be able to provide better and even more services at a lower price and higher degree of effectiveness.
Learn from leading academics and practitioners from around the world about the innovations, technology and regulation driving the transformation of finance through this course on Introduction to Fintech on Edx https://www.edx.org/course/introduction-to-fintech