What is Fintech and How Does it Work?
Finance Magnates
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Fintech or financial technology is a term used to describe emerging technology whose aim is to automate and improve the use and delivery of financial services. At its most basic, fintech is used to assist consumers, business owners and companies in better managing different aspects of their lives by using specialized algorithms on their devices. When the term first emerged, it was mainly applied to the technology used by established financial companies in their backend systems. Today, it has shifted to more consumer-oriented services. With this shift, its definition has also had to shift. Today, it includes different sectors and industries such as nonprofits, education, fundraising and nonprofits. Read on to learn everything you have ever wanted to know about?fintech.
History of the Financial Technology Industry
Although many believe that fintech is a new tech breakthrough, the reality is that it has existed for quite a while. Its origins go all the way back to the introduction of credit cards in the 1950s. Their introduction eliminated the need for members of the public to carry hard currency.
From here, the sector evolved to include online stock trading services and bank mainframes. PayPal came into the scene decades later (1998), making it one of the first corporations to operate primarily on the internet.
It’s a breakthrough that has further been revolutionized by data encryption, social media and mobile technology. The revolution has led to the introduction of:
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How Does Fintech Work?
Fintech provides consumers and corporations with access to traditional financial services using innovative methods that didn’t exist before. For example, most mobile banking apps now provide their users with on-the-go access to various conventional [continue reading on financemagnates.com]