Digital transformation has also affected the financial sector, whose clients have strongly integrated into the digital world and already carry out most of their banking transactions using modern technologies.
Therefore, all banks must be ready to serve their customers effectively with the use of modern technologies. Now ahead of the one who follows the new trends. Modern technologies can make life easier for customers and simplify the implementation of most tasks. Therefore, the simpler your development is, the more likely it is that the client decides to choose you. Digital banks with smart applications and a lot of features are leading the way. This will go on and on. To remain competitive, you need to keep up with the times.
Therefore, if you have not yet applied such technologies, then most likely it is time to change something. To do this, you can turn to fintech software companies for help. Then you can be one step ahead of your competitors.
Every day this term becomes more and more popular. More and more people are wondering what it is and where such a word came from. We will look into this further.
What is fintech?
Fintech is a word that arose from the union of two English terms: “Finance” and “Technology”. Fintech is all those companies, usually start-ups, that are responsible for developing tools using new technologies to improve processes in the field of finance.
Fintech is a new area of the financial industry, taking advantage of the creation and use of new technologies to improve financial performance: processes, products, information management, business models, and so on. This is a very broad area that covers many areas. It is impossible to single out anything specific here.
The future of fintech
Does fintech have a future? Of course yes! This is a direction that will be actively developed in the future. Such technologies have been able to completely change the financial sector, simplify the conduct of most cases, and also replace traditional methods of financing with more modern ones.
Every day there are more and more new startups in the field of financial technologies. This trend is observed all over the world. This figure will continue to grow further. Most governments in different countries support this trend and do everything so that young entrepreneurs can further develop their projects.
With an upward trend and technologies that are updated every year, professionals in the sector must know how to respond to change and lead the industry’s improvement through fintech. The Master in Financial Technology and Financial Innovation focuses on identifying and exploiting all opportunities for disruption, as well as developing all the necessary capabilities to create financial technology.
Top 3 common types of fintech
There are different types of fintech depending on the financial sectors covered:
- Fintech for electronic payments: These are the tools that allow us to buy online and make transactions. We don’t have to go to the bank to pay the bill. Everything can be done online. For example, Paypal is the most famous. New tools such as Google Pay, which allow us to pay directly from our mobile phone without having to carry a card in our hand, also fall into this area.
- Fintech lending companies: These are organizations that provide various types of credit lines without the need to close a physical meeting. One of the most successful is Cetelem, which is already represented in thirty countries and has 27 million customers.
- Cryptocurrency fintech: A lot of digital currencies have emerged lately and it is thanks to fintech that they have been able to spread in this way. Cryptocurrencies themselves are a very good example of financial market disruption. These currencies, which do not have a physical presence and can only be used over the Internet, help make international business easier than ever. Although the best known is Bitcoin, we find many others such as Ethereum, Litecoin, and Tether.
Fintech is a direction that will only develop. Therefore, it’s time to apply such technologies to your companies.