Finance the term began with a physical transaction between two parties, on one side we had a bank and on the other side, we had lenders and debtors. Banks became an institution for financial gains as a deposit vault, investment in gold and transferring money between the regions became accessible. Over the course of time, the financial sector has seen an exponential development. Technology has become one of the reasons driven by the course of connectivity solutions and transfer mobility; banks had to move out from a single faced financial sector to combination of two sector finance and technology known as Fintech.  The need for new technology that will look to improve and automate service delivery and the use of financial technology. At the core financial technology is being used by the enterprises, and consumers to improve the financial operations and processes by utilizing the specialized tools that can curate the transactions.

Fintech has seen a rapid increase in adoption because almost all the consumers demand applications on their smartphones that can assist the financial operations in the 21st Century. The initial step for many of the financial institutions started with backend systems that can emerge as a support technology for the services, however, the shift in the consumer demand managed to bring customer-oriented services. Fintech has been able to include a cloud of technologies that will automate the process of financial services improving the process of wealth management, lending and borrowing, retail banking, payment, money transfer and investment management bringing more services in the Fintech sphere. Fintech also led to more comprehensive solutions for the development and use of crypto-currencies such as bitcoin. The segment of fintech can be seen in most of the headlines that lead the global banking industry. Before we start digging in the financial tech world, we need to understand the stages through which the financial market went through before it had achieved such a feat.

Fintech as an Infrastructure

Financial technology is a broad term that includes front end customer technology- various applications and third-party payment technology and backend to support various services. Since the internet revolution and the inclusion of smartphone to connect the world, we saw the development of financial technology grow explosively. The Fintech has added the service of banking for both personal and commercial finances, making it a situational effort to use the technology to improve access to various services.  The recent survey by the EY’s 2017 Fintech Adoption Index, one-third of consumers utilize one or more Fintech services in their daily lives.

Fintech as a Practical Application

For the most part of the current development that we have observed across the financial technology has been towards providing the relief for designated threat, failure of the system and improve the financial services by providing a better alternative or develop completely a new range of technology. Whether we have faster technology or slower technology, we need constant innovation for the sector.  Affirm an online lending company that provides a range of products and services that offer online shopping process by offering a way for consumers to secure the immediate and short term loans for the purchase. While the interest rates are higher compared to other financial banks but Affirm claims to offer a way for consumers with poor or no credit score to both secure the credit and improve the credit history. Better mortgage seeks to streamline the home mortgage process through the digital process that will assist the users to get verified pre-approved letters within 24 hours or applying. It’s improving the financial technology for the business and consumers without over the disrupting the security. Bringing data from various sources to identify the present creditworthiness of consumer to improve the financial transaction reliability. Similarly, technology is being used to promote financial technology, to assist the technology development of Fintech. The financial technology has completely opened the technology bandwagon for the traditional banks, financial service, and products along with various trading options. The current range of financial products affects all the laid our infrastructure as the products and services are more driven towards the effective solution of desktops and mobile services. It’s moving the institution based solutions towards the customer-centric solutions that can ease the procedure and move the banking facility towards improved solutions.  Traditional banks have also invested towards the enterprises to match with the already set solution of set investment in the Fintech. Fintech inspired innovations to need speed and process with improved decision making.

New Disruption Using Technology

New technologies such as Artificial Intelligence (AI) and Machine learning tend to offer the growth path with data analysis that defines the predictions and provide behavioral analytics for improving financial decision making. Learning apps have become one of such solution for the traditional banks it not only promotes the development of learning games but also make the automatic, unconscious, spending better with decision making and improved technology building. Fintech is keen in the adoption of automation technology that keeps the automated customer service technology by utilizing chatbots and AI interface to assist the customers bringing the basic task of banking that can be customized with business solutions.

Fintech Types

There are four categories that can actually cover the banking and technology combination – B2B for banks, catering to business clients, B2C for small business and consumers.  Trends that cover mobile banking, increased information, data, and more accurate analytics. With decentralization, it will be a more imperative opportunity for all users to understand how to interact with users in unpreceded ways.  The technology though needs to be more defined according to the purpose and security, it will more imperative towards the security scenarios that need to be managed. Some Fintech experts have already added that the focus is towards the millennials that soon will be contributing to maximum revenue of the banking sector and their active interest toward the credit cards and buying process.    


Whether it’s businesses or consumers the technology has a solution for each problem or the innovation will create a solution. Each banking institution is differing in deciding on the levels of technology adoption based on the providers and the customer level of understanding. Installing the infrastructure technology solutions that can provide end to end solution for customer and enterprises.

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