Fintech, the future of banking is now
More and more companies are merging technology and finance
Hence, the term fintech, formed by the words finance and technology, that is, financial technologies. Fintech provides financial services through simple applications and enables any kind of banking operation to be performed without having to rely on the bank. From asking for a credit line to managing all personal account moves. And let’s not forget investments, almost like a traditional bank. A high percentage of companies or finance brands use some type of fintech software or product in their company.
What is clear is that the link between technology and financial services has come to stay.
Fintech offers us faster and more automated savings and management. Flexibility is a concept that applies 100% to fintech. Transparency: company finances can be managed transparently. Efficiency: financial technology is and makes us more efficient. Services that include digital support for startups, online banking or virtual currency, new types of payment, contactless cards, or even other types of collective fundraising.
One of their bets is to offer innovative and alternative financial products to those offered by traditional financial institutions.
- Building a new emerging economic sector
Fintech is more agile and this would be its main advantage, but not the only one: it also provides cheaper transactions as a result of the removal of intermediaries. And it supplies creative proposals to solve liquidity problems in a much quicker and more effective way. New products and financial markets can be accessed, without geographical limitations. And all of this quickly, which is one of the keys to successfully operating in the world’s leading variable interest or fixed interest floors.
- The fintech phenomenon, the modification of the world banking scene
The global avalanche of technological services alternative to traditional banking is such that we cannot ignore the fact that it is an unstoppable phenomenon and it will increase. There are more and more people with access to these new financial services. It is partly due to their ease of use and also to their versatility. Fintech has been much more successful so far in improving the ecosystems and infrastructure of traditional financial markets than in developing new ones.
- What is the difference between fintech and a traditional bank?
Traditionally, banking leads to a lack of transparency that generates harmful experiences in its customers. This is where fintech concentrates many of their efforts, being as transparent as possible and putting the customer at the centre of business.
With regard to customer knowledge, it is true that banks have a personal relation with their customers, but fintech has a greater knowledge of their customers, thanks, among others, to technology. Traditional banking has established opening hours for customers; fintech offers its services 24/7 the 365 days of the year.
The link between finance and technology is affecting and will affect the way in which we relate to our money, our finances, our payments, and all financial products. But the rapid development of these companies, thanks to the continuing technological advances, points to a strong transformation of the market in the future.
Thanks to technology, users are changing, and so are their priorities in everyday products and services. The simplicity, clarity, speed, and security in managing their savings and in the immediate control of money are needs that fintech is fulfilling in the fastest of ways.
Fintech has entered our lives to stay.