What is FinTech? ( A complete guide that everyone can understand)

You may you have heard the new tech buzzword “FinTech”. This blog will help you to understand it and why is it important for all entrepreneurs?

What is Fintech?

FinTech or Financial Technology is used and applied in the broad range of business operations, including banks, trust companies, insurance companies, brokerage firms, investment dealers and more importantly, individuals looking for managing and tracking their expenses and savings.  It represents technologies that disrupted traditional financial services such as mobile payments, money transfers, loans, fundraising, and asset management.

Fintech is not another technology fad.

According to a report by Accenture released,  it was stated that the investment in fintech has increased drastically from $930 million in 2008 to more than $12 billion by early 2015.

fintech mobile application

FinTech is not limited to the financial services sector. It is essential for every other business. FinTech startups are small and agile, has revolutionized the traditional financial services and innovated quickly.

How FinTech can change your business?

To start any business, one needs to go to local banks to get a loan or seek out a traditional investor. If a company wants to accept credit cards, it needs an account with a big credit provider — not to mention a landline and bulky equipment.  But Fintech has changed this.

Technology is revolutionizing the way small businesses start up, accept payments, and create a global network, making it easier than ever to start and run a business.

International money transfers — which have long been a problematic issue for entrepreneurs — are getting easier.  For smaller transactions, services like PayPal automatically convert currencies, so it’s easy for a customer in one country to purchase goods from a maker in another country. Additionally, services like TransferWise are streamlining international money transfers, offering a 90 percent discount on traditional bank transfer fees.

How FinTech is changing your customer?

FinTech has tremendously changed customer behavior and expectations, consumers can now access data and information anywhere and everywhere. They can now adjust their investment portfolio or deposit a check while waiting for the cab.

Due to this customers now expect the same level of service and access from every firm. A seamless mobile experience is an essential part of banking whether it is a global bank or local credit union. Credit cards are expected everywhere whether it is a department store or the corner shop. Now, people can also pay with their phones.

It’s a great democratization of services for the customers. Hence, it is essential for every business to embrace the latest technologies if they don’t want to lose business.

Fintech Industry is changing rapidly

FinTech is in its nascent stages. As technology will progress, businesses will be able to offer more services at a lower cost by staying updated with what’s available and possible. If they won’t stay at the forefront, they will lose out on opportunities, customers, and market share.

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