A lot of us talk about FinTech quite often, but do we know what FinTech is?
Maybe, maybe not. To check our IQ on FinTech, let’s take this quick quiz called, “how much do you know about FinTech?”
Let’s begin with an easy one.
Q1. What does FinTech stand for?
- Finest Technology
- Final Technicalities
- Financial Technology
Q2. What technologies does FinTech implement?
Q3. What can FinTech do?
Q4. Which is the number one FinTech Company in the world?
Q5. Is PayPal a FinTech?
Q.6 FinTech Trends?
Q7. Is Bitcoin a part of FinTech?
Q8. Which generation is more inclined toward FinTech Services?
Q9. Name the popular digital wallets?
Well, we might know answers to some or maybe all of these. But the innovative industry that is straddling the worlds of finance and technology needs to be understood in detail.
Combined like smoosh names, the term FinTech isn’t that innovative but is embraced by millions across the globe.
Unknown even to Chris Skinner, the global FinTech pundit, who announced the launch of FinTech with an introduction to Zopa, the UK peer-to-peer lender initiated in 2005. Since then, this technology has never looked back.
Growing strong each day with constant tweaks, significant changes, rollouts, and updates, the FinTech industry has success stories ranging from mobile check deposits to Robo advisers. The rise in cryptocurrencies and blockchain technology also managed to create a buzz across the industry.
The rise in progressive technologies such as Artificial Intelligence, Machine Learning, and Natural Language Processing makes FinTech even more friendly and attractive for the masses.
In the shade of the coronavirus pandemic, FinTech outshined even better. Ready for a crisis such as the COVID-19 pandemic completely changed the way transactions were carried out. Right from hawkers brick and mortar stores to multi-story showrooms, everybody began accepting digital payments. This FinTech service proved to be a boon during times of social distancing.
FinTech—the future of payments and banking
As coined by Pierre Gramegna, Minister for Finances in the Bettel–Schneider Ministry, “FinTech is not only an enabler but the driving engine.”
This aptly means that FinTech has way more potential than we think. As users, we only are aware of a few aspects or just the superficial layer of the technology. However, the innovative genre has a lot in store.
A lot of us believe that FinTech is all about money? Well, that’s not the truth. FinTech is a concept about streamlining, automating, and transferring money and money processes and where innovation and technology are key.
As innovation has always been special to mankind, FinTech goes that extra mile to smoothen money matters. Additionally, the positivity of investors in believing in the digital wave and technology is another reason for the humongous success and expansion of FinTech.
From AI to cryptography, rapid digital tech space changes transform the financial technology landscape, making more room for creativity and innovation. Known as FinTech, the new technology concept has taken the world by storm. Consumers, irrespective of cultural, social, and economic differences, can use FinTech services to streamline money matters.
FinTech apps and the proliferation
Once restricted to personal computers, FinTech now has a wider sphere to operate in. You will be surprised to know that even social media platforms have become an essential part of the FinTech revolution along with mobile payments and crowdsourcing.
Before we jump into understanding the real reason and pros and cons behind the proliferation of FinTech apps, here is a quick rundown on the application of FinTech.
- Mobile payments
- Crowdfunding platforms
What are FinTech apps?
Fintech apps, a.k.a financial technology applications, are gaining rapid popularity and have changed the way businesses and individuals transact.
Available with elements like security, innovation, transparency, ease, and future readiness, FinTechs are moving in the direction to make the financial system more effective.
Entrepreneurs with interesting yet realistic ideas flourished in the genre. Talking numbers, in 2018, FinTech enterprises touched the USD 55.3 billion mark in investments. You would not be surprised to know that several venture capitalists are eagerly waiting to invest in an exclusive idea, and a lot of them have already invested in a range of promising FinTech businesses.
As the mobile market is growing, so is FinTech, and hence the proliferation.
But who is driving this demand?
Is it the financial innovators who are eager to bring about change and simplify money matters, or tech and financial savvy consumers who now understand the power of FinTech and demand more each day?
Well, it is difficult to be certain about who exactly is driving the demand. But one thing is for sure, the demand is surging, and FinTech apps are garnering extreme popularity.
Top three reasons that make FinTech apps inevitable
1. Focus on user-friendliness.
Finance is not everybody’s cup of tea. You will not be surprised to know in the case of FinTech apps a basic principle by Steve Jobs (Chairman, Chief Executive Officer (CEO), and Co-Founder of Apple Inc,.) that reads, “With the design, how it looks and feels does not matter. What matters the most is how a design works.” FinTech app development companies follow the fundamental to add to the user-friendliness quotient.
Remember, the essential element of any FinTech app is to gain a clear, simple, and uncomplicated understating of human requirements.
The simplicity and ease available in FinTech apps make them extremely wanted in the market.
2. Boosts engagement
Believe it or not, the younger generation or the generation that we call millennials is crazy about FinTech apps. It is not just crazy, but they manage to use these apps at least a couple of times every day (significantly more than the older generation).
And as millennials prefer to have services on the go, FinTech apps provide them those. And since FinTech apps are easy to use, manage, secure, and quick, they boost engagement by smartly adding more financial services options in one single app.
3. Value addition
No matter what service or product consumers pay for, they always expect to add value to their experience.
FinTech app users are particularly attracted to these apps for convenience, and moreover, they appreciate the concept of carrying an entire bank account in their pockets via their smartphones. Additionally, these apps also streamline financial tracking compared to the past.
In the current scenario, FinTech apps enable its customers to go through a visual history of their spending and display a financial services chart and graph to add depth to this information, which in return helps users to understand their savings and expenditure patterns better.
FinTech successfully has also brought significant improvement in customers’ spending habits by making wiser and informed financial choices.
To be continued…
FinTech is a vast genre, and even a single element here is challenging to be summed up in a single article. So, stay tuned for some more essential information related to FinTech Apps in the next segment. (Here is a hint: we will talk about fraudulent FinTech Apps and ways not to fall prey to fraud.)