TOP 10 Fintech things you need to know NOW!

Fintech is widely considered a drab topic that only boring, intellectual banking industry people need to care about. Most people can just ignore fintech and carry on their lives as if it never existed, but the truth is that nobody in today’s world is completely devoid of enjoying the practical benefits of fintech.??

Every one of us has experienced the ripples of fintech at some point in our lives.?

Technology is making disruptive advancements in our day-to-day lives. On one hand, we are developing robots that can walk and talk like humans, and on the other hand, we are using AI and ML to completely replace human beings.?

The banking sector is experiencing a drastic change too.

I have rounded up the top 10 FINTECH things you should know today!?

Let’s dive straight in, shall we??

I. Fintech could one day replace Traditional Banks?

Yes, you heard that right. Several banks are closing down their physical branches. Hence, it is not surprising that from social media discussions to international forums, debates are roiling whether fintech companies will one day replace traditional banks for good.?

At this point, nobody can vouch about such a realty, but it is a given that the plausibility cannot be discarded completely.?

Several traditional banks see fintech companies as a direct competition. Initially, banks saw the emergence of a fintech wave with ennui that bordered on disdain as they always thought fintech can never be a threat to the monopoly enjoyed by FIs and Traditional banks.?

Banks deluded themselves that the rigid regulations will insulate them and erroneously believed that they enjoyed the unshakable trust of the people.?

What traditional banks never realized was that empowered with technological solutions, Fintech companies could navigate through any regulation, and it is only a matter of time before fintech companies would win over the trust of the common man.?

Also, it shouldn’t be forgotten that people are constantly looking for alternate finance. At the right time, everything could eventually fall in place for Fintech.?

User experience is the buzzword these days. Everybody wants the best experience and every service provider, from a hotelier to a bank, is fully focused on delivering a state-of-the-art experience for its end user.?

Fintech has technological advantages and its approvals are faster and less cumbersome.? Because it is in its initial phase, they leave no stone unturned to keep consumers fully satisfied with value-added services, reward points and loyalty deductions, etc.?

Fintech is creating so much noise in the market that banks are now apprehensive about their future. With more and more consumers gravitating towards Fintech, their fears are not unfounded.?

?II. “Fintech” meant something else decades ago?

Every other person would easily guess how FINTECH came about- Finance + Technology = FINTECH. But did you know decades ago, in the 70s to be precise, Fintech actually meant the back-end technologies that made banking activities possible??

This changed in the late 1990s when PayPal was founded, that’s when the term came to mean something totally different or as we know it today.?

III. FINTECH is not limited to the Finance sector??

A major share of fintech involves a lot of banking activities like loans, credit ratings, etc, but did you know that Fintech has also transformed the way these transactions are conducted??

Digital Payments, an essential enabler of Fintech solutions, has made our lives so easy and effortless. Today, most people prefer digital payments because it is quick, safe, and hassle-free.?

But money is not the end-all and be-all of fintech. There are different departments that make a fintech company successful like accounting, development, project management, customer care, risk management department, compliance, marketing, and sales, are a few to name.??

IV. Revolutionizing loans?

Fintech companies have revolutionized the entire loan process. It has become quicker, more convenient, and effortless. User-friendly mobile applications and websites are easily available?at the consumer’s disposal to read, be informed, compare their options, and then take a wise decision regarding the loan that best suits them.?

Every consumer’s demand is unique and being able to get a tailor-made loan is a great advantage to an applicant.?

By filling in one application, various loan providers are alerted and the entire process can be conducted online, making it more streamlined, efficient, and error-free.?

Getting a loan approved from a traditional bank can be rather time-consuming, not to mention the expansive set of documents and records one needs to furnish. ?

The cherry on top is that your credit score remains untouched!?

V. Fintech has Multiple takers!?

Fintech has been a very lucrative and attractive endeavor to invest in since its very inception. There is no wonder that it has several takers, meaning investors.?

But because it’s a relatively new and emerging sector, the market is still largely untapped and hence has immense possibilities and potential. ?

In the last decade alone, Fintech has boasted of a whopping 300-million-dollar investment in the US and globally the value stands at 4.7 trillion dollars!?

VI. Fintech’s role in mitigating poverty?

Fintech has been and still is instrumental in lifting people out of poverty. Think I am bragging? NO!?

With digital banks and digital payments, people in underdeveloped countries who never had a bank account are now doing business online, selling their wares, and earning a livelihood. ?

From being financially uneducated and uninformed, people now have an easy alternate payment method.?

Fintech infrastructure requires much less investment than a bank branch.?

VII. Fintech gives you the choice to manage your money easily

The financial services market is huge and expansive. The greatest advantage Fintech companies enjoy is the cheap operating cost. Armed with large reserves of data, fintech companies can serve consumers better. ?

The high competition shows that consumers have a greater choice, which ensures wiser financial decisions and better control of finances.

VIII. Remittances Easier and Cheaper?

Remittances and FX can be costly. Sending money across to family or friends can be quite expensive depending on the service charge levied by each bank and other collaborators involved.

It is estimated that as much as 32 billion dollars are lost solely in cross-border transactions. By offering lower service charges and quicker delivery, Fintech companies are really making an impact in the financial sector.?

Leveraging blockchain infrastructure can aid in bringing down the transactional costs further, and also enhances transparency. ?

Some major competitors providing remittance services have been able to reduce the costs to 8 times lesser!?

IX. Goodbye Bank!?

One-third of the US population believes that in a matter of a few years, traditional banks will be obsolete. Are Fintech companies slowly phasing out traditional banks??

So, what is so attractive about Fintech products and services? The plethora of innovative solutions it offers at a cost that is not just attractive and competitive but is also value-added.?

However, the risks associated with fledgling fintech entities can be a drawback, in the long run, compliant fintech companies are poised for unprecedented growth.?

X. Banked for Good!?

In just a span of 4 years between 2011 and 2014, as many as 700 million people are said to become bank account holders.

Interesingly, this was not via a bank!?

Mobile-empowered Fintech has facilitated this transformation. Mobile accounts sent the percentage of account holders from 24% to 34% in just 2014 alone.?

There is little doubt that Fintech ensured greater financial inclusion among poor countries. But women’s financial stability is still not at approving limits.?

Only 58% of women have an account compared to men’s 65%.?

The other factors that impact financial inclusion are the quality of the internet and the affordability of services.?

Fintech may or may not completely phase out traditional banks, but you are now equipped with the top 10 Fintech things you had to know today!