We have come way too far in the past two decades in technology. From wired to all wireless communication, we have accomplished a big deal in networking. Everything from shopping to hanging out together can be done with the help of eCommerce platforms and social networking. The technology has also benefitted fintech, making it easier for people to invest, lend, or borrow money. Today’s generation is experiencing a new age of banking and money transactions which has opened new opportunities for entrepreneurs. With this fresh perspective on financial markets, this combination of big data, IoT, and networking is finding new ways of growing the fintech industry.
What is fintech?
Financial Technology (Fintech) is an industry which provides the right software and tools for businesses, banks, individuals, and other organisations for financial services. The fintech companies are generally the startups which are made to disrupt the existing financial models and larger financial corporations. Even though the larger corporations are also improving their software solutions, these new startups are more convenient for users in many ways. Fintech today is a multi-billion dollar industry lead by startups due to the growth of fintech solutions.
Advantages of Fintech
Fintech is providing easy financial support to everyday people, allowing them the services which are usually only available to the higher class individuals and businesses. Loans and investments are much easier to get today from fintech. Everything which was reserved for certain asset level at some point is now available to the mass.
Money lending was a big issue that common loan seekers faced as the criteria of the banks were limited. The banks charged high-interest loans and limited money lending to people with a level of assets. Today, fintech is providing redesigned criteria for money lending. The banks have never considered the benefits that they could receive from the masses. Fintech realised the opportunity to benefit them as well as the mass. Today the loans can be available at 0% interest rates from various fintech applications. These advancements could not have been possible without the growth of technology and networking.
Fintech is opening new opportunities for consumers in investing, borrowing, savings, and banking. The startups are also working to create new plans for mortgage and insurances to develop new options for consumers.
Why should you be careful of fintech?
Despite its many benefits, fintech can become toxic for your financial health if you do not control your options properly. Since the services are easy to understand and provide quick solutions, the consumers are forgetting to check what they are getting themselves in. For example, in the case of big money requirements, some of the fintech might not be enough, which can force a consumer to rely on multiple fintech, further complicating their finance management. One must always rely on a trusted fintech while trusting them with investments and finances.