The Modern Financial Technology – Fintech

Financial technology or fintech is today’s combination of financial technology describing a developing financial services sector in this modern time.

The term fintech originally applied to technology applied to the back-end of conventional consumer and trade financial institutions. At the end of the first decade of the 21st century, the term has expanded to cover any technological innovation in the financial sector, including advances in financial literacy and education, retail banking, investment and even crypto-currencies such as bitcoin.

What is Fintech?

Literally, the term financial technology can apply to any innovation in how the people of today manage business, right from the invention of digital currency to double-entry bookkeeping. As the internet revolution and the mobile internet revolution begin, financial technology has grown rapidly, and fintech, which originally referred to computer technology applied to the back office of banks or trading firms, is now describing a wide variety of technological interventions into both personal and commercial finance.

Based on EY’s Fintech Adoption Index, a third of consumers use at least two or more fintech services and those consumers are likewise progressively aware of fintech as a part of their everyday lives.

Fintech’s Expanding Possibilities

If there is one word that can perfectly described how many fintech innovations have affected traditional trading, financial advice, products and banking, it is definitely “disruption” as financial products and other services that were once the empire of branches, salesperson and desktops move toward mobile devices or simply democratize away from huge, deep-rooted institutions.

New Technologies in Fintech

New technologies such as machine learning / artificial intelligence, predictive behavioral analytics and data-driven marketing, will consider the guesswork and practice out financial resolutions. Certain apps can learn the habits of users, which are often concealed to themselves. However, such apps can easily engage users in learning games to make a better automatic and unconscious saving and spending decision.

Fintech’s Platform

In 2016, fintech has approximately $17.4 billion in funding, but in the late 2017, it was bound to surpass such sum according to CB, which counted at least 26 fintech unicorns internationally valued at $83.8 billion.

Actually, North America creates most of the fintech startups, followed by Asia. Some of the most active areas of fintech innovation consist of run around the following:

Fintech Users

There are four broad categories of fintech users:

• B2B for banks
• For banks’ business clients
• B2C for small businesses
• For small businesses’ consumers

Nevertheless, from the trends towards mobile banking, increased information, data and more precise analytics and decentralization of access will build better opportunities for all the above-said groups in interrelate in heretofore unparalleled means.

Aizelle Joe

Philippines

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