FinTech is short for financial technologies. It is a broad term covering all the innovation and technology that competes with traditional financial working.
Unlike traditional methods, modern FinTech solutions provide precise calculations helping financial workers get their job done flawlessly and give value to their clients.
When you go to the bank and ask for a loan, the employees no longer make calculations by hand. They insert the data into the computer and let the software do the job. Its precision is unmatched.
But FinTech is much more than that. Here are five points to show you that there’s no other industry like it – and why it is so valuable.
1. FinTech reshaped financial working
Payments, loans and finance work remained almost unchanged for years before the invention of FinTech.
FinTech reshaped how financial institutions work from their core. What used to be done by hand is now digitalised, and the margin of error is almost non-existent. Financial workers have no chance for a mistake, making financial institutions nearly unable to lose their investments.
2. It may change banking forever
Did you know that 700 million people across the globe between 2011 and 2014 opened a financial account – but not through a bank? Various start-ups and financial institutions offer their service in managing people’s money but are not working as traditional banks.
They use software to handle their work and provide a much better service to their clients. Apps and programs controlling the funds, driven by artificial intelligence, are the foundation of their work, making everything easier for both users and companies.
It means that banking may face an end unless it is entirely adjusted to the modern way of working and the influence FinTech software development is imposing on its methods.
3. Saves money for every individual
People who needed to make sense of their payments and save money from their home budget used to hire a consultant – someone skilled and experienced in finding a way for their client to save.
Now, there are tons of apps that are much more affordable than hiring a consultant, and at the same time, they do the job much better than anyone. Financial working has moved from the office to your smartphone app, providing a faster and better way to learn how to save.
4. FinTech made payments easy
The first credit cards were invented in 1950. Before that, cash and product exchange were the only ways to trade and pay for stuff. Now, the options are almost fully digitalised thanks to FinTech. Some parts of the world are entirely cash-free, and retail payments, for example, are done through smartphones.
Every day we see new start-ups offering better payment solutions and companies developing new apps, making our lives easier. There’s not just one FinTech software development company that helps us achieve a cashless society, but a whole army of developers are working 24/7 to make the world a better place.
5. It is an industry attracting tons of investors
Everyone sees the potential that FinTech has and how much it is going to grow. It is estimated that the value of the biggest FinTech companies is higher than the one of the banks, proving that the industry is going in the right direction.
According to CNBC, the value of the biggest FinTech companies is over a trillion US dollars. This is because all investors are ready to share their funds and get a piece of the action. After all, the predictions are that the industry will grow much more, so their actions are entirely justified.
Conclusion
These points show how unique the FinTech industry is. It also shows how much it is changing our lives and the world of finance. In the future, we can expect even more changes and digitalisation of the financial world. What we see as a great idea now will turn into an everyday reality for all of us.