In just a few decades, science has taken at a place that religion and traditions couldn’t do it in centuries. There is no denying the fact that technology has reshaped our life and made things possible which one could not even have imagined in the past. With the advancement of technology, every sector of the industry is booming and the finance industry is not an exception.
Earlier, when it came to borrowing a debt, the first thing that used to come across the mind of most people was them standing in the long queue of the bank. Well, those days are long gone and due to the emergence of the internet, many Fintech start-ups have started to play a major role in the financial industry. Here, in this blog, we will be discussing Fintech in a more detailed way and will understand how it is reshaping the realm of finance. So, let us get started.
What exactly is Fintech
Fintech, the shortened version of financial technology is all about making it easy for the people to make payments, invest in the market and even borrow a loan via the online platform. Basically, Fintech companies use software to provide financial service to their customers. Earlier, it was only the start-ups that were in the Fintech business, but now many other larger financial corporations have understood the need of using software and other technology to improve their service quality and make it faster for their customers.
Unlike the traditional financial systems, the Fintech starts are aims to offers a technological solution which can be availed anywhere part of the world without any complications. For instance, getting a loan with poor credit is something not possible if you knock the doors of the traditional lenders, but now many direct lenders in the market now even offer very bad credit loans no guarantor no broker involvement. This is something very difficult to get if you are applying at a traditional lender.
Main benefits of Fintech that you should know
Due to the emergence of the Fintech, the companies are reaching the masses and providing services which were earlier reserved only for the set of high class or wealthy individuals. One great example would be investing, now every people can completely understand about investment and its working policy with the help of technology and useful data. So, anyone can now learn about any financial concepts easily that will eventually people in making better money decisions. Another example would be the lending industry, where there were very few lending sources, so many people request was used to be rejected and if approved, a higher interest rate would have been charged for a loan. Now, there are many direct lenders who offer various loan products that can be easily accessed and thus providing multiple options to the people to choose from. Now, let us see the other goods of the Fintech one by one.
- Use of Artificial intelligence
Artificial Intelligence plays a key role in the Fintech industry that aims to provide precise and more customer-oriented services. A proper virtual robot mechanism is set, which put a series of questions in front of the users and then evaluate the algorithms to prepare a better investment plan for the user. These help the users to select the most suitable and convenient option.
- The rise of online lending
For many years, banks were the only platform available for the people where they can borrow a loan. Now things have changed drastically as for the people with lower credit score, Fintech has paved the way for various options as there are direct lenders in the market who even offer bad credit loans with no guarantor and no credit check. Earlier, getting a loan from a bank with bad credit was next to impossible because of their rigorous strict lending rules and guidelines. However, people have other doors to knock when they are facing any financial crisis.
- Mobile payment
Today, the majority of the people use a smartphone which we all know is far more than a tool for communication. Now, you can just send money to any of your friends or pay for a coffee without even touching your wallet. Today, there are various companies who are providing payment services in the form of software and mobile application. It acts as a virtual wallet where you store as much money possible, thus providing more safety as you won’t have to carry much cash with you anywhere you go.
So, this was everything that you need to about the Fintech and its role in the industry. As the technology will keep pacing up, the role of Fintech will keep on increasing and will play a far more role in the coming future.