The Technological Evolution of Fintech

Banking CIO Outlook | Wednesday, May 29, 2019

FREMONT, CA – The technological revolutions of the twenty-first century have sparked significant innovations in the finance industry, driving it to new and enhanced levels. To stay relevant in the competition-driven market, almost every financial organization has adopted fintech to increase their productivity as well as revenue.

The fintech industry is growing at an enormous rate, with the higher institutions and governing bodies flocking toward it. As the popularity of fintech increases, larger financial organizations are showing interest in this sector, especially in the bitcoin market. Fintech has not only made data sharing quick and seamless, but it has also helped in the reduction of processing time and increased productivity.

The big data acquisition has helped the financial organizations to streamline their services. Fintech has modernized traditional banking, enabling seamless access to commercial tasks. The digitalization of wallets has enabled the people to store their money in cards and digital platforms. It has also revolutionized the way consumers conduct financial transactions. Seamless mobile payments have eliminated the need for consumers to visit physical banks.

Once used to describe the back end operations of financial institutions, fintech now encompasses a variety of applications designed to assist the consumers in their business needs. Fintech has enabled smooth management of funds, trade stocks, insurance, and so on, via the smartphone. The consumers can now leverage the tools offered by fintech to track and manage their funds.

Even those who do not possess a bank account can now utilize the services offered by fintech to partake in financial processes going to a brick-and-mortar bank. It facilitates consumers with direct access to their financial lives through easy-to-use technology.

The crowdfunding platforms powered by fintech enable users to send or receive money on their platforms. It also allows businesses and individuals to gather funds for their ventures, instead of going to traditional banks for loans. It has paved the way for direct interaction between businesses and investors.

Another contribution of fintech, the cryptocurrency exchanges such as Gemini and Coinbase have helped to connect users from different parts of the world and facilitated safe cryptocurrency transactions. It has also helped in reducing fraud by storing the transaction data on blockchain nodes. The success of fintech will certainly ensure its incorporation into more facets of everyday human life.

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