Fintech is the new and unique financial technology that deals with any rising technology that alleviates the numerous types of infinite transactions made between the consumers and the other financial institutions that provide such types of services. This newly coined termed technology Fintech is much more enhanced, faster, and reliable than the traditional ways of the past. With the help of a Fintech, customers can make transactions easily. For example, a consumer does not have to go to the bank and withdraw his money by standing in a queue for hours when he can just download an app and make his transactions.
This financial technology acts as the mediator between the payee and the receiver or the bank. These Fintech companies are regulated by country’s banking institutions such as RBI in India. Fintech startups and established companies are regulated and monitored by the government and they need a license to run their businesses, sell products, and provide different kinds of financial services. Fintech encourages people to take control of their financial aspects by achieving financial literacy and tools to make the whole process simpler and faster.
Since the inception of Fintech companies all around the world, people have started to use different apps and financials platforms such as websites and various mediators to get financial help. The incubation of the advanced technologies in the field of finance has revolutionized the industry. Indian startups such as Paytm, Paysense, PhonePe, Indiabulls, etc have made everything so easy for the consumers. Now anybody can take any kind of loan within minutes by signing up on these electronic platforms. One can also do their own research, choose their preferred stocks and monitor portfolio performance through Fintech companies.
There are many companies that have emerged in the recent past that help customers make quick decisions. Getting funds for small businesses and startups is very easy and rapid. The most popular giant tycoon of this industry is Ant Financial, founded in 2014. It is based out of China and is a subsidiary of Alibaba Group (BABA). Ant Financial covers and deals with management of wealth, credit reporting, private banks, payments, and cloud computing.
Companies based on the same format and pattern as Ant Financial gives users the opportunity to provide each other loan, also known as P2P lending, for businesses investments and startups without getting central financial institutions in the way. You don’t have to go and contact the traditional financial institutions of the country to ask for the financial services. you can just go up to these apps and websites and give each other loans without any hassle and intensive paperwork.
As the world is becoming cashless every day, we are on the verge of going completely cashless as more Fintech companies are emerging. A cash-less based society will be the new face of the future upon which the industry of the finance and money transactions will rest upon. Fintech model and approach has made the traditional payment methods such as taking the time and going to the bank has made obsolete. In a world of consumers with more and more financial problems, Fintech will prove to be the best solution.