FinTech, the short form for Financial Technology, is the innovation that aims to merge technology with financial services. For long it was tried to do so, but now, with the evolved Artificial Intelligence, it has now become possible to achieve a great level of the FinTech revolution. This has brought efficiency in the functioning of the institutions and made the functions simpler and time-saving. The use of smartphones for mobile banking, investing services and cryptocurrency are just a few examples of FinTech.
With the help of FinTech, a customer can easily go online and check their account status or all of their financial transactions and can keep a check on their account activities with just a tap on their phones. Thus the customers are ever more taking charge of their financial lives, and there is also a rise in financial literacy than before.
Financial Technology has helped the customers to optimize the use of new trends such as Artificial Intelligence, Robotics, biometric applications, the blockchain, Peer-to-peer lending and may more of such technologies. With the use of mobile applications, one can send and receive money easily. The application PayPal allows its customers to receive and send money in any currency. The FinTech revolution is surely making revolutions in the financial industry.
We can expect the following more revolutions to make the financial industry even more efficient.
1. Robo Advisory
This technology will greatly reduce human intervention in the preliminary processes. The robots will provide financially related small bits of advice to the users. These processes will run mainly on the complex algorithms, and these algorithms will be carried out with the help of the computers, and hence, there will hardly be any need for human intervention. The robot advisory can also help the investors in accessing the stock market in an easier way and also in a transparent manner.
2. Alternate Lending-
Lending the funds to smaller businesses is sometimes not profitable to the banking institutions. So with the help of FinTech, people can provide peer-to-peer lending options which are based on the mutual terms of the providers and also at low-interest rates. This has become a popular service in the emerging markets and has helped the start-up companies in many ways.
3. The use of BlockChain –
Generally, in a transaction, there is a requirement of third-party validation. But with the use of blockchain, this third-party reconciliation is easily eliminated and it also provides extra security in the actions. The blockchain technology has become popular because of the use of Bitcoin. The Bitcoin is the unregulated form cryptocurrency which can be traded in any currency. This gives us an idea that the future application of the blockchain will be through the cryptocurrencies only, which is also called as the Bitcoin mining. The process of Bitcoin mining is a peer-to-peer process that verifies the Bitcoin transaction.
4. Digital Payments –
New and smarter payment options are being introduced in the market and the FinTech industries are providing quick and convenient payment methods to its users. For example, PayPal is a famous digital payment method used in the US. It also allows one to send or receive money in different currencies. With digital payment options, it is expected that the ATMs will no longer be needed for any transactions and the developed countries will mostly be digital modes for almost all the transactions.
With the FinTech revolution, the future of the financial industry is bright, and we may see extensive use of mobiles for maximum payments.