Fintech And The Future
Admin
Oct 4, 2021
Our world is constantly advancing, especially when it comes to technology. Less than two decades ago, who would have guessed that we would be able to use an app on our smartphones to instantaneously transfer cryptocurrency to friends or family members on the other side of the world? From cryptocurrency to cellphone banking to insurance, fintech seems to hold the keys to the future.
What is fintech?
Fintech, a blended term that is used to refer to “financial technology”, an industry which focuses on any kind of technology in financial services. A fintech company can be described as any company which provides an automated or improved financial service through software or emerging technology, this can be anything from mobile payments to cryptocurrency. One of the first fintech companies that comes to mind is Square Inc., a US-based financial services and technology company that offers mobile payments and point-of-sale operations. Another popular fintech well known amongst the crypto world is Ripple, a fintech company that is mostly known for a cryptocurrency called XRP.
Why has fintech been around longer than we realised?
Fintech is by not a new concept. The financial services industry is no stranger to adopting new technologies. ATMs and debit cards were once new concepts. Many people are only coming to know of fintech as it has been under the spotlight over recent years. This is largely because of the exponential advances in technology that we have seen recently. Businesses have adapted and completely changed their business models to challenge existing, outdated products. These ‘disruptors’ are bypassing the established financial institutions and delivering faster, cheaper and more sophisticated services directly to consumers.
How does fintech affect the way you live?
Fintech is disrupting nearly every area of the financial services industry. It's likely that you already use at least one fintech product, and you don’t even know it. Thanks to fintech, you can send money halfway around the world in a matter of seconds by simply pressing a button on your smartphone.
Applications of Fintech
Blockchain and cryptocurrency
Cryptocurrency exchanges like MEX Digital allow users to buy or sell digital assets like Bitcoin, Ethereum and Ripple. Blockchain technology is proving extremely helpful in preventing fraud and promoting transparency. Your digital crypto wallet could soon become the equivalent of a bank account and a payment card all in one.
Mobile payments
Fintech has disrupted the way we pay for products. Cash payments are soon to be a thing of the past. Mobile payments are proving to be extremely popular with the increase in apps that allow consumers to exchange money and payments online or on mobile devices.
Insurance
Many fintech startups are partnering with traditional insurance companies, allowing them to automate processes and expand coverage.
Lending
People are now able to apply for loans on their mobile devices. Fintech has drastically reduced the approval processes and made it easier to apply for loans or get credit from credit providers.
Why does fintech hold the keys to the future?
The number one reason that fintech is set to hold the keys to the future is probably its ability to bank the unbanked. There are currently two billion people in the world who don’t have access to financial services. The fintech industry aims to bring financial services to those individuals who do not have access to traditional banks or financial institutions.
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