Now that technology is reaching every small segment in the business economy, how can finance be left behind?
Fintech essentially refers to technology-driven solutions related to the financial sector Technology along with finance is known as Fintech that stands for financial technology. Tracing history reveals how financial technology began with the launching of financial services in the US to the invention of bank proof cash machines moving further to the invention of ATMs so on and so forth. Here we are now, where everything happens with a click of a button, be it applying for loan, funds transfer, banking, managing accounts, etc.
A research paper ‘The Evolution of Fintech’ by Arner, Barberis and Buckley’ states the reason for a sudden rise in Fintech is the Global Crises of 2008. Financial technology is advancing at such a fast pace that now the educational institutions have started offering a course specialisation in financial technology. The Fintech companies have seen a sudden rise due to easy access to the internet. Why would anyone invest their time in visiting a bank and standing in long queues? All of us prefer smart and quick ways of getting things done be it financial management, fund transfers, investments, etc.
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Fintech has become one of the booming industries due to the opportunities of expansion this sector got. An infographic on the incredible growth of Fintech by 16best.net extensively explains the rise in the graph of financial industries. One of the major reasons being the usage of smartphones among the masses. People have become so dependent on smartphones that they try to seek every solution over smartphones. Seeing the usage, banks came up with their own banking application to cater to the growing demands of the public and make it easy for the customers to deal with financial matters. With APIs coming into existence, the functionality of such apps became easy. Digitisation became popular resulting in regulation of finances. There have been certain challenges during the rise of financial technology like targeting the people, making people aware, regulating the process, gaining public trust, managing the cash, etc. Overcoming these challenges, Fintech has made its position in the market that now the competition is getting difficult.
Every company has something unique to offer and the time taken is minimum. Earlier it was a monotonous task to take a loan, now it is just ‘apply now’. You have to click a button, provide certain details, verify and the loan gets approved. Even if there is a situation of a cash crunch, there are companies offering cash loan within a day. Companies like Home credit offer cash loans within 24 hours. You just need to apply online, complete 7 steps, provide PAN and Aadhaar. You will get the approvals at the earliest. Be the part of fintech world, earn smart, spend smart and stay smart.
