Last updated on March 8th, 2021 at 09:53 am
The fusion of technology with finance brings out the perfect recipe for the exponential growth of the economy. The Fintech industry is setting new heights of what can be achieved through technology when applied prudently. Adaption of Fintech technology is the need of the hour. The Fintech technology not only provides a way to record the transactions securely but also provides convenience and cuts the time taken to process a transaction on a massive scale.
Saving time and securing data are the two by-products that have a lot of impact on our daily functioning. The adaption of Fintech is growing exponentially, in the present scenario the penetration of this technology has been on very deep levels, improving the lives of people in the remote locations as well.
Changes in the financial landscape
Fintech has dramatically improved the financial industry in many aspects. The big players are focusing on customer experiences which lagged earlier before the Fintech start-ups started setting shops in the neighborhood. Most of the banks and financial institutions are coming up with their tech-savvy financial innovations, technology has been a big contributor to employment in this domain.
Artificial Intelligence continues to innovate and evolve the Fintech domain, the Fintech courses are developing a new commerce interface with the help of AI to help ease the banking experience. Robo-advisors and voice feature in banking seems to be catching up with bots being designed to handle and provide the customer with the relevant information online.
The entrepreneurial bug has been a major contributor to the Start-up Ecosystem. With the increase in the number of start-ups in different domains, the need to finance the operations has been immense. Helping those with fund scarcity from investors, the Fintech companies are their go-to guide for financial help. Providing the small and medium-sized businesses with financial aid in their endeavor the Fintech companies are propelling the wheel of the economy.
Banks have started focusing on providing loans and other credits to millennials instead of just well-established individuals. The millennials contribute a substantial amount to the spending economy. The growth of digital wallets and UPI payment methods have helped to ease the cumbersome process of monetary transactions.
Contextual banking has caught up by the storm, the contextual banking model is focused on providing the banking and related services at the right time and the right place to the customer based on the data gathered on customer preferences. This is a major trend in the Fintech domain helping to target the right customer with required services for better revenue generation.
Fintech adoption
The general customer awareness regarding the Fintech Industry is at an all-time high. The rate of adoption on a global scale is more than 60%, people in remote areas who didn’t have bank accounts in the first place have adopted this payment method just because of the convenience it provides when compared to traditional methods of banking and carrying out monetary transactions.
In a world where people have started spending on experiences rather than goods or services, we cannot put a cap on convenience in terms of possibilities and people’s willingness to pay for the same. The applications of Fintech is beyond bounds every new day witnesses a new possibility since we are in the early stage of adoption of the Fintech tool.
Business to Business (B2B) payment system has got a push recently in the Fintech domain, earlier the services were designed to cater to the needs of Customers and not businesses. The B2B payment module is a lot more complex and tied with cumbersome paper formalities, the goal has been to automate the manual process and make it simpler just as for the individual consumers. In addition to this, the focus is also on making B2B lending hassle-free.
Big financial institutions are getting on-board in this Fintech revolution either through a strategic partnership or through investment in the same. Artificial Intelligence plays a crucial role in creating a more robust Fintech space and adding a lot more to this evolution of finance and technology fusion.
Conclusion
The future of Fintech companies will witness an unprecedented level of growth and evolution will follow in the financial domain as it has been linked with technology which is ever-evolving for the better. The general trends show high adoption and acceptance rate for this domain, Individuals, as well as business houses, have decided to hop on this revolutionary technology given the benefits it holds.
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