What is Fintech? Applications of fintech?

Fintech stands for financial technology. as we all know. the revolutionary development in technology made tremendous changes in each and every part of the world and every business sector. as a part of this rapid change, there was a huge change in the finance sector also. financial technology aka fintech helps to enhance business operations in finance. fintech can be anything like software, business, or service they provide technologically advanced ways to make the financial process more efficient and accurate.

To be more specific, Fintech refers to technological innovations that are coming in to disrupt traditional financial services. this includes a wide range of services including finance includes mobile payments, money transfers, bank loans, and other products like mutual funds and insurance, etc. one of the best examples of fintech is mobile banking.fintech is making banking very easy and effortless by mobile banking and internet banking. we can get all the banking services online. remember, there was a time, we had to go to our bank branch for every service. now banks provide all services online. and mobile payments make things further easy.

Fintech becomes more powerful when more technologies combine together. The following are the major technologies that contribute to fintech.

also read: Top 10 Fintech startup companies in India

• Artificial intelligence
• Machine learning
• Big data science
• Data analytics
• Block chain
• Robotics process automation

Applications of Fintech

When we ask ourselves what are the applications of Fintech, it is easy to understand it in terms of some of the latest innovations in financial services which have become a part of our life. Let us discuss some of them.

Mobile payments

One of the most popular uses of Fintech is mobile payments. This is very convenient as people can send and receive money and pay bills without using any physical money. internet banking and mobile banking made amazing changes in the entire banking system. people can instantly send and receive money from their mobile phones. all leading banks in India provide good mobile banking applications. more than money transactions, you can pay bills of mobile recharge, electricity bills, etc within seconds.

Crowd funding platforms

Crowdfunding platforms allow internet and app users to send or receive money from others on the platforms and allow individuals or businesses to pool funding from a variety of sources all in the same place.  companies like Patreon illustrates the range of fintech outside of Traditional banking.v

Blockchain

Blockchain is a core Fintech technology. Since it is showing some specific characteristics, the use of blockchain is not only limited to cryptocurrency, but has found uses in other areas of finance. Blockchain is considered to be one of the most advanced fintech.one of the most famous example of blockchanin is Bitcoin. bitcoin payment is geting popular these days.

Robo advisory

Robo advisory is a system where a computer uses a set of algorithms and based on available data suggests financial products to a customer without any human assistance. Going ahead this can replace a human financial advisor.

though right now a blend of both is offered by most financial services firms. Robo advisory is active in the stock market and it plays a key role there,

Chat bots

Chatbots are computer programs that work with artificial intelligence to conduct a conversation through text or voice. Chatbots give a feel as if one is talking to a human being.

it has thus replaced a real human being sitting on a computer and answering user queries. A chatbot can help a customer with answering general queries, give product suggestions, and even generate leads 24X7. A chatbot is an example of the use of Fintech is enhancing customer experience.

Digital lending and credit

Through open banking technology, you can borrow money without hassle electronically. Open banking refers to the sharing of financial data electronically and securely under customer-approved conditions. Lots of lending apps leverage a customer’s transactional information to make lending decisions. Some use peer-to-peer lending where users can get loans without the need for bank involvement.

Other fintech startups provide customers free credit reporting, including updated scored and insights. Credit Karma is an excellent example of such a company, also allows customers to check and compare different loans and credit card offers.

Insuretech

Fintech has even disrupted the insurance industry. In fact, insurtech has come to include everything from car insurance to home insurance and data protection. Fintech companies are leveraging technology to sell insurance and mutual fund products to the end consumer. Armed with multiple data points, technology is used to match customers to a suitable product thus cutting off the time it takes to buy these products to only a few minutes.

Finance apps

The introduction of finance apps made life easy. now we can do almost every finance-related thing through mobile apps. fintech startups like Paytm, phonepay, freecharge, etc are some of the famous examples. mobile recharge, railway, bus, movie ticket booking, bills payment are the major services they provide and that makes things very easy. we can do the booking, payments, etc through these apps in seconds.

AI virtual assistance

Virtual assistants made user’s mobile experience and access to services from financial institutions easy. With this technological innovation, customers can access their credit score data, get alerts about fraud, and make voice or text-enabled payments. virtual assistance made financial sector more cusomer friendly.

Automated trading

In stock trading, fintech enables auto trading. auto trading is one of the most advanced methods of stock trading, auto trading is a process of buying and selling of stocks automatically with the help of a well-written trading program.

Closing thoughts

The introduction of Fintech made a tremendous impact on our life. financial activities become so easy and effortless. especially banking related things became so easy. transaction of money and other payments are done in seconds with the help of finance apps. in this post, we discussed the basics of fintech and its few applications that make an impact in our daily life. I hope this post will give you a base idea of fintech.

Happy financing