10 Easy Ways To Facilitate Innovation In FintechDecember 3, 2018
The Fintech industry has been gaining immense investment in last few years. People are readily accepting the technology and driving the best out if it. However, most of them are not truly aware of what is Fintech or the Fintech Technology. Before we move on to draft ways to boost Innovation in fintech let us take a quick tour as to what is Fintech?
What Is Fintech?
An innovation in the sector of technological services is named Fintech. The professional who works in the financial services sector short form Fintech is responsible for finding trending ways or technologies that would be a breakthrough in the existing market of finance. Majorly, Fintech India focuses towards satisfying the user need by inducing automation. Several startups prefer employing Financial Technology as it does not post restrictions in the name of legacy processes. Firms as Fintech India are capable of staying a step ahead of the firms that induce traditional methods of finance services.
Many financial services firms now seek to join hands with Fintech India to pave innovation. The trend set in the market now strives to bring a massive change in the financial sector majorly the banking domain of the country. PayPal was just one disruption, Fintech India would break barriers.
10 Ways To Boost Innovation
- Real-Time Payments: Rather the online payment we all are moving towards to. An excellent way to monitor the cash flows and the balance in your account, Fintech courses are all set to turn tables in the banking sector. Currently, a payment tales near about three days for processing and approval. Customers have to patiently wait until the balance pops up in their accounts. Additional fees for overdraft and payment adds hindrances’. With the onset of Fintech, people could just swipe and confirm payments at their own ease.
- Artificial Intelligence: Digital India is the new logo all over. With the advent of machine learning, significant importance has been given to Artificial Intelligence. The optimal way to help customers seek better payment options, schedule payments, exposure to new products, leverage the effectiveness of business operations, and account for better innovation opportunities.
- Industry 4.0: Fintech is believed to bring a massive shift in the pattern of building it Industries. The era of automation would be gradually replaced by the online system. The shift would leave its mark on all sectors. The digital world would innovate ways to keep their clients in lieu of the pace of online transformation. Conceptualizing knowledge as well as resources to implement the same would lead to customization of the solution. Owing to such a shift, Fintech would be a box of opportunity in the industrial sector.
- Borrowing and Lending: One of the major areas that have witnessed immense innovation in the past few decades. Traditionally, lending and borrowing were peers to peer but as the nation grows in terms of financial technologies, companies have now created online portals were both the borrower and the lender could directly connect. Though the same requires a great deal of investment, yet companies are ready to take a risk and innovate the capability to oversee the lender base trust.
- Management Of Wealth: A pool of opportunities lies in the bed of managing wealth. Most of the population today are the millennials but in search of a good job. People are looking for an investment plan that would generate a better return. Also, the fact that the traditional advisers have no significant success, youth prefers to stay away. In such as scenario, Fintech India os the best place to invest and innovate. Several companies like Learnvest consider education a tool to gain customers trust.
- Cryptocurrency: An excellent mechanism and innovation by Fintech, cryptocurrency initiates the advent of current digitally and encodes encryption for the same. The prime mechanism in cryptocurrency is the use of code to build currency units which can be used further to verify transaction that does not rely upon the government.
- Bitcoin: The Fintech trades have been looking for such an innovation and Bitcoin strikes the chord perfectly. The first and the most prominent of all the cryptocurrencies, Bitcoin paves innovation in Fintech. Evolved as a digital currency, Bitcoin eliminates the need of central government for payments thereby opening doors for a network that facilitates peer to peer payment. Basically, Bitcoin is an efficient way to transfer money online without the influence of a third party financial institution.
- Blockchain: A technology of distributed ledger and an excellent innovation in Fintech, Blockchain technology eliminates central power. Cryptocurrency records can be stored in a network of a computer where each is connected in a chain structure. Blocks are meant to ensure security via encryption. The advent of Fintech India gives birth to transparency to varied Industries along with the much debated financial industry.
- Regtech: A technology that boosts the confluence of financial services with the standard rules, Regtech automates and digitizes the rules pertaining to the Anti Money laundering. This leads to eliminating the illegal money and also the induction of KYC processor benefit the financial Industry by preventing frauds.
- Ethereum: A simple technology that eliminates the middleman and is similar to the blockchain technology. Traded in terms of exchanges in the cryptocurrency, Ether is the token valued in Ethereum. The major trend of innovation in Fintech causes disruption in the Banking Sector, however, the way it would evolve in the future is a matter of concern.