What is FinTech?

FinTech or financial technology refers to system software that specializes in financial services. Broadly, it implies the usage of any technological advances like devices, internet, software, etc., to carry out financial operations for your organization. Initially, its application was restricted to banks but today, a plethora of other functions can be carried out. Today, FinTech allows you to make payments online, manage funds, and even stock trading. The bank transfers that we are so easily able to carry out online are a result of the advancements in FinTech over the years. UPI, net banking, e-commerce, everything has been made possible with the evolved financial technology we witness today. It has undoubtedly made our lives easier. Imagine standing in a queue outside a bank just because you have to make a deposit, who has the time now? But with FinTech, who needs that much time anyway!

In a world that is this swift, financial technology has made things convenient. The benefits of this technology in today’s world are manifold. With the diverse things that FinTech carries out, it has given us time to perform other crucial tasks of our lives. It is not just the payments that have been made trouble-free with this technology, some of the other examples include:

  • Crowdfunding- This technology helps you to avoid the pain of the procedures a bank executes to approve your loan. FinTech has made it possible to go straight to the investors for pitching in for your business. This is especially beneficial to SMEs.
  • Cryptocurrency and Blockchain Exchange- Cryptocurrency and blockchain have taken over the investment sphere to a certain degree and it is all the gift of FinTech to us.
  • Insurance- Fintech has made it easier to extract savings and efficiency from the current insurance models and has hence, made our access to insurance policies easier.
  • Stock-trading- Now investors can buy and sell stocks on their mobile device with some simple clicks.
  • Expense Management- FinTech has helped to blueprint the expense management software that helps you to track your finances and your employees, too.

How is FinTech Beneficial to us?

It is needless to say how much our lives have revolutionized with the evolution of financial technology. We can perform a great chunk of our financial duties from the comfort of our couch. It has changed the meaning of banking for businesses in a hundred ways. Off the top of my head, some of the most fascinating benefits that FinTech has endowed us with include:

  • Faster Approvals- Not only we can apply more conveniently, but the rate of approval also takes a tremendous hike with FinTech. Loans, insurances, or finances are approved way faster than they used to be with traditional banking. Therefore, your business might benefit at a faster rate, too.
  • Convenience- Almost all the things we had to crawl out of bed for are now accessible and rapid via our mobile devices. Transactions have revolutionized and are carried out way faster than before and that too, securely with just a few simple clicks. You can deposit your employeessalaries with just a few taps on the screen.
  • Personalization- FinTech firms can personally cater to the needs of each customer as they have access to a lot of information about them.
  • Security- With biometrics and PIN, it is made sure that your data is completely secured on your device. User identification is made a priority before carrying out transactions or deposits on your device.
  • Payroll Software- With the payroll software that is developed using FinTech, formulating an employee’s salary structure has been made simpler. This is advantageous to most SMEs as it reduces the resources exploited in calculations.

With ongoing digitalization, financial technology was the need of the hour. Roughly put, an average organization exploits less than 20% of the benefits FinTech has to offer. Once its uses are thoroughly grasped, it can make enormous transitions to the way we work. Happy Financing!