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Category: FinTech

Industry Report: FinTech Policies and Principles, E-Commerce Payments!

Posted on by Imarticus Learning

The industry of e-commerce came into being sometime in the early 1990s and from there on it happened to grow really rapidly. With this change, both the business owners as well as customers started using the Internet on a large scale. Both for their own recreational as well as professional purposes.

This rapidly changing dynamic was successful in roping in a number of services like email, online shopping platforms, and so on, all of which was successful in giving the area of web services, a revamped look.

With this addition more and more business owners were successful in selling goods and services, online directly to the users. According to reports and statistics, the value of online sales has risen from around $4.9 billion in the year 1998 to about $342 billion in the year 2015.

The newest addition to the field of web services was the online payment options. Earlier as a customer, you had to be really careful with any kind of identity theft or phishing attacks when it came to online payments with cards. This was mainly the reason why many people didn’t really want to make payments online.

But this changed with the introduction of payment gateways, these were services like PayPal and E-Pay and so on, or like Paytm, which is an Indian version. These payment gateways work as a mediator on behalf of your account. All you have to do is connect your bank account to these and you can easily make online payments, without sharing any of your bank account details.

All of this is a result of a number of Fintech companies, working towards the improvement of this process. They have introduced and incorporated software programs like API or more commonly known, Application Program Interface software.

Here the numerous developers are able to create customized software solutions, which help companies interact with their consumer base, in regards to their products and services, betterment of their analyzing processes, encouraging the users to sign up to their particular websites, send payments to the various merchants, as well as receive confirmations of payments sent and so on.

Let’s take Amazon.com, this multi-billion dollar firm has taken e-commerce a step ahead, with the introduction of something called dash buttons, these buttons are supposed to help consumers get directly connected to the internet. The way these buttons work is very similar to the manual maintenance of an inventory. This means, for instance, if any of the users run of a particular brand of washing powder, they are used to using, then they can totally go ahead and order more.

If reports are to be believed, then the month of November 2015 saw about eight of the eighteen Fintech startups, valued at over $1 billion all over the world were supposedly offering just payments or transfer systems.

One thing is for sure, that in conclusion, the field of Fintech is definitely transforming the way we make payments online, as well as the money transfers. This is being taken note of by a number of Fintech aspirants, who are looking for the Fintech Course according to the industry standards from institutes like Imarticus Learning.

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Policy Principles for Fintech: Productivity Potential

Posted on by Imarticus Learning

Policy Principles for Fintech: Productivity Potential

The financial services industry is considered to be more of information industry. Here the real value of money is not really taken into account rather, it (money) is a nominal representation of the real value (which would be the goods and services provided). While a majority of industries that follow similar paths have sort of experienced disruptive gains.

Contradictory to those, the Fintech industry has been at the receiving end of incremental innovation. Today due to the influx of the development of technology, the financial services industry stands at a juncture, where expensive, single purposed networks are giving way to cheaper, and general-purpose ones.

When we talk about this industry, we must bear in mind its long and historical tryst, with the IT sector. For instance, it was during the 1950s that the Diner’s Club and American Express, which happened to be a mail delivery firm, provided their customers with the first credit cards, in order to lessen their cash burden.

Then came the next decade and banks began to offer self-service ATMs, in a bid to improve the quality of their tellers. The decade after that saw the emergence of the great stock market. This stock market was instrumental in replacing the manually functioning floor trading, with electronic stock trading. This change was brought about for the sake of making trading faster and cheaper.

The ’80s brought about new avenues for experimentation and banks started with various new processes, in order to help their customers. This was the time when net banking was introduced and this move was made so as to provide network services, which allowed customers to conduct their banking business from anywhere.

The later couple of decades saw banks becoming more tech-savvy and fully embracing the potential of internet banking. Today, almost all of the banks have adapted themselves to the world of mobile banking, most of which have their own mobile applications, which allow the customers to do everything at the click of a button.

As opposed to the belief during the olden days, the increasing rates of inclusion of the IT sector in banks have led to a greater increase in labor productivity throughout the sector. Let’s take the example of all of the banks in the United States, in the field of commercial banking the labor productivity from the year 1987 to 2015, has increased by 153 percent. This is about twice as much as the labor productivity increase of the whole economy.

The introduction of Information Technology has gone on to ensure full automation of the tiniest of services, increasing efficiency. For instance, banks would automate all of their back-end processes, which would, in turn, save them hundreds of hours of a monthly routine.

Today the technology has benefited the banks so much, as to the fact that it allows the banks to have fewer branches, yet have more efficiency and productivity. Self-service options like ATMs, mobile banking, and so on have helped in further reducing the costs of the banks’ services and improving their productivity. This is the reason why more and more candidates take up courses from Imarticus Learning in order to be a part of this field.

Why FinTech Seems to be Thriving?

Posted on by Imarticus Learning

It seems that the sector of financial technology, which was touted as many as the new kid on the block, has had a fair share of failures. Some of the big guns in this field including OnDeck and Lending Club have reportedly experienced some mighty losses and organisations like CAN Capital stopped lending altogether.

There seem to be a lot of experts and industry pundits, who are all of the collective opinion that “the bloom is finally coming off the rose.” This happens to be a figurative telling of the certain bumps and losses incurred by this field. But a majority are still siding with the silver lining and it may seem that this sector might really be thriving.

The recent events are not news for the FinTech industry, which is because every single industry undergoes them. Regardless of whichever sector it is, the market leaders usually happen to jump to an advantage.

But a majority are still siding with the silver lining and it may seem that this sector might really be thriving. The recent events are not news for the FinTech industry, which is because every single industry undergoes them.

Regardless of whichever sector it is, the market leaders usually happen to jump to an advantage, thus leading to the growth of the industry. Now, that the industry grows, it also multiplies the number of players entering into
the market space.

Some players happen to participate in the distinct competition as their ventures grow and as is the case, some players cannot really make it. It’s the most basic rules of capitalism, where although all entrepreneurs take risks, some may succeed while other may miss the mark.

FinTech is most likely thriving mainly because it happened to extend its capital access, to almost everyone. Per say, there were no discriminations whatsoever as minorities, women, immigrants and all the others who were under served, were provided with a level playing field by technology.

This could not have been a plausible scenario a few decades ago when one could meet a venture capitalist at a cocktail party and get themselves a six figure financing deal. While people who were natives and higher up on the societal runs totally got to benefit from this, those of lesser economic means always struck out.

But today with technology advancing, lenders are able to have accurate data about their potential borrowers. This way the risk factor goes really down and efficiency increases. Similarly, FinTech has begun to take India by storm, by revolutionizing the electronics payment industry.

It cannot be denied that banks are slow when adapting to change which is why it takes a while for FinTech companies to break into the market. But another thing working in favour of this sector is that the investors have short-term goals, thereby they’d want to quicken the process of things while expecting quarterly results.

But most important of all, we cannot overlook the fact that technology has transformed the banking sector thoroughly. Today it is actually possible for a person to never step inside a bank to carry on their personal transactions. We happen to live in a time where you can actually accomplish everything at the click of a button.

With large banking corporations investing in technology to make most of their application processes to go online, there is a sure chance of FinTech not only thriving, but becoming a flourishing business. Many finance aspirants have noticed this and have begun to learn the ropes by taking up training programs, offered by professional training institutes like Imarticus Learning.

Imarticus Learning teams up with leading Global FinTech players to bring to you a first-of-its-kind Global FinTech Symposium. FinTech, or simply put, Financial Technology, is an industry composed of start-ups and established companies trying to replace or disrupt traditional financial processes with the use of technology.

This is an upcoming industry and has the potential to impact every single person and therefore makes it one of the fastest growing areas for venture capitalists. We welcome you to join this FinTech consortium where our panelists from global organizations will share their journey and experience on what it takes to excel in the world of FinTech.