Fintech, or financial technology, is a term used to describe financial services that are primarily driven by technology or that use technology to enhance financial services. The internet revolution and widespread use of smartphones have made technological access incredibly accessible. This has helped the financial technology sector, which has grown rapidly, even more. Initially, technology was only used for accounting and bookkeeping in the back offices of banks or trading companies. However, in the modern period, this viewpoint has completely altered. Nowadays, there are many different technology interventions in the "Fin-Tech" space, ranging from personal to business finance. The term "fintech" now refers to a wide range of financial activities that are supported by technology, such as instant money transfers, QR code-based payments from smartphones, avoiding banks to apply for loans, raising money for a business startup, or managing your investments without the help of a person.
The first stage is to mandate electronic payments for goods and services instead of cash payments from customers. To test its innovative concept, tech giant Amazon is leading the way in fusing an online shopping account with a conventional in-person shopping experience in nine convenience stores without cashiers. Customers simply grab what they need, leave the store, and the items are automatically charged to their Amazon account. Concepts like these will likely shape the future of shopping. Another example of a Fintech innovation that many modern consumers have adopted is the ability to make payments through smartphones or smartwatches.
To simplify and improve money management, fintech companies are currently leading the sector and developing a wide range of new financial goods and services. Through the use of mobile devices, fintech is enabling financial services providers to explore new markets and enabling consumers in places with few options to obtain services that were previously unavailable. Access to under-banked and un-banked consumers is allowing Fintech companies to reach and capitalize on markets that have been underserved to date, particularly in Asia and the Southern Hemisphere.
While advancements in the area of Fintech have been happening at lightning speed, we have only just begun to scratch the surface of what is possible and likely to happen in the next few years. Fintech has made it simple to trade, bank, and swap money without the need for direct human contact, which is why it is not an exaggeration to claim that it is transforming our lives and habits. To gain the trust of customers and for Fintech to completely take over the market, the financial sector still has some obstacles to overcome, particularly in the regulatory and data protection areas. Business leaders are recommended to look for opportunities and incorporate Fintech applications into their business models to attract customers in the future, especially with technologies like big data, blockchain, AI, and so many others in use or on the horizon.