What is fintech?
Financial technology, or fintech refers to any business or product that uses modern and advanced technologies to deliver financial services to consumers and businesses.
When fintech emerged in the 21st Century, the term was initially applied to the technology employed at the back-end systems of established financial institutions. Since then, however, there has been a shift to more consumer-oriented services and therefore a more consumer-oriented definition. Fintech now includes different sectors and industries such as education, retail banking, fundraising and nonprofit, and investment management to name a few.
Below are benefits that set fintech businesses apart:
1. Cost of transaction
Whether it’s processing fees or commissions, fintech businesses know that users today are particularly attentive to costs. That is why Fintech solution providers often refrain from charging additional fees, such as modification fees, cancellation fees and other hidden charges. Having a better visibility of the various costs incurred may represent considerable savings for a company.
2. Convenience
The COVID-19 pandemic has contributed to the rapid rise of fintech. With the currently limited cash transactions and more increased cashless transactions, fintech companies came out as one of the big winners of the pandemic. Their high level of connectivity allows them to reach a wide audience and allows their audience to reach them at the touch of a button. The flexibility they offer in terms of time and location make them entirely adaptable to their clients’ needs. Companies are also adopting Fintech because it uses technologies to give users a better and reliable customer experience.
3. Speed
In today’s fast-paced world, waiting for an international payment to go through, or a financial institution to grant a loan can sometimes take what feels like forever. That is why fintech companies rely on efficiency to set themselves apart. When you apply for any loan application online, it must be authorized by digital-only lenders that can provide same-day funding, which is only feasible because of fintech innovation. If you need a short-term loan or a payday loan, then with fintech it gets easier. You can simply discover many lenders online and get access to quick service.