Financial technology, more commonly known as FinTech in the industry, is basically the utilization of innovative technology in order to provide different products and services related to finances. The main goal of fintech is to make it possible for consumers to have access to multiple channels, convenient as well as fast payment options. It has been discovered that its efficiency extends in many areas in the business including money transfer, mobile payments, lending, investment management and fund raising.
Due to the rapid development in the financial technology sector, consumers all over the globe are benefitting from it including those who are previously considered to be unbanked population. It also helps in reducing the costs incurred but the competition is stiffer than ever.
There are many advantages brought by financial technology to the table and here are some of the highlights:
- Payment systems are better than ever. With the help of fintech, businesses are able to manage their invoicing and collection of payment in a more accurate method which increased efficiency. This results to a professional service provided by financial institutions which positively impact customer relations. The end result is that consumers are more likely to use the same service again because of higher satisfaction.
- Approval is faster with lending transactions. Lenders that are linked with fintech are now preferred by small business vendors because they are more accessible and the speed by which the finance requests are approved is faster than those that are not linked to fintech. It is now possible for businesses to get their capital approval within 24 hours.
- Mobile services have made life easier for people in general therefore it is not surprising that mobile connectivity also play a vital role in fintech. Financial transactions are now possible through smartphones and portable gadgets. This is also another way for business to provide efficient services and improved customer experience.
- Better security. If you ask a fintech expert like Nadeem Shaikh Anthemis, security is one of the main reasons why fintech is adapted by many financial institutions in the world. With increased risks coming from cyber attacks, fintech tools are available to ensure that the consumers’ finances and personal information are safe and secure.