What is FINTECH and how does it work?
You have probably heard the word “finTech” from here now, because everyone has. But few people really understand its meaning. However, while we say, “Few people know”, some people in the world have managed to understand this phenomenon – because it changes and will soon change our habits, our daily lives and our idea of comfort even more.
Financial technology
We use what is called a lot of financial technologies now.
You use Fintech’s industry advances each time when you:
Pay taxes via an online account,
Go to an online bank,
Or buy music on iTunes.
This is because of the width of finance technology that it is difficult to explain exactly how FIXTech works, but we will understand it!
FINTECH AND APPLICATIONS
Let’s start with FINTECH in the field of business. Last year, Fintech companies were earning $ 17.4 billion in the United States alone and the share of global revenues was $ 84 billion.
Of course, keep in mind that we are not talking about startups. If you add to the list companies that are in one way or another linked to government agencies, the amounts become even higher. So what do these companies do?
Cryptocurrence and digital currency.
Blocking technology, with a decentralized system.
So-called “intelligent contracts”, which allow you to exchange money and data securely without the help of third parties.
INSURTECH – Technologies used in the insurance sector to streamline processes.
Regtec (regulatory technology) – Technologies guaranteeing fast and reliable compliance with legal regulations. They are now growing in popularity, as various countries actively introduce legal regulations for memorandums, which must be monitored to ensure that they work legally.
Robo assistants are software algorithms that include different types of investment advice for much less money than real advisory companies.
Non-banking services offering services to low-income people who can not, for one reason or another, obtain the support of traditional banks or other financial companies.
Cyber-security.
Fintech and the future
Modern technology has incredible potential that can result in completely unexpected areas. Therefore, it is difficult to say now what exactly will be in Fintech, but it will undoubtedly continue to gain popularity among businessmen and potential customers. Some of the new FIXTech areas that are not yet emerging are already ready to be evaluated by experts:
Markos Zachariadis, Professor at Warwick Business School, believes that Fintech companies will work more and more with banks and could try to reform the banking system as such.
This may seem strange, but centralized governments are very interested in the use of decentralized fetch products such as blockchain. The potential of its application to government structures is limitless.
Jim Rogers, co-founder of the Quantum Fund, promises that all nations will emit their own cryptocurrence in the future.
One of the most logical areas of Fintech’s development is the mobile bank. It increases as quickly as possible in countries with little involvement in the global banking system.
According to statistics on financial publication, the assessor, 32% of the solvent population in South Asia does not have access to the banking system.
Thus, the modern companies of FINTECH help to solve territorial problems in low access to Fintech software development services, considerably simplify the use of banks and provide residents with new opportunities.