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Category: FinTech

What’s a Bitcoin and How Does it Work?

Posted on by Imarticus Learning

The 21st century witnessed one of the most revolutionary inventions in the form of blockchain technology. It’s perceived to be almost as radical as the internet technology that changed the way we live. One of the most popular uses of this ground-breaking technology is in the form of cryptocurrencies like Bitcoin. Let’s delve deeper into the subject to understand what is Bitcoin and how does it work,

Understanding Bitcoin

What is Bitcoin? This is a frequently asked question by people who want to understand and invest in this exponentially growing asset. Bitcoin is a popular cryptocurrency that has no central backing and is used in the peer to peer Bitcoin network. In simpler terms, it can be understood as a digital currency that is not represented by a central authority and doesn’t require any intermediary to function.

This means that there would be no transaction charges or fees what so ever. Bitcoin was officially launched as open-source software in 2009. It is among the world’s largest crypto-currencies when valued using the market capitalisation.

The aim of using Bitcoin is to remove all the intermediaries that exist and adds to the financial burden of common individuals. Also, the absence of a central authority makes it more transparent and less regulated. The underlying technology behind cryptocurrencies like Bitcoin is known as the Blockchain technology. Blockchain can be simply understood as a decentralised digital ledger that records transaction which can’t be altered later or manipulated by any one individual.

Any new entry will be visible to all the peers in the network, reducing the chances of fraud altogether. The use of cryptographic hashing and decentralisation is the key highlight for blockchain technology as it helps to create a more transparent system reducing the dependence on the intermediaries and chances of corruption.

Just to give you an analogy, think of the blockchain ledger as a shared spreadsheet. Any changes made to the spreadsheet is visible to all the people who have access to the spreadsheet, the same is the case with blockchain.

How Blockchain Works

Fiat currencies are issued as a legal tender and are backed by the central government; this includes the normal currencies that exchange hands daily like the US Dollar, Euro, Yen, Rupee, etc. Unlike a fiat currency, the Bitcoin doesn’t have a physical presence rather it is mined digitally and kept on a distributed digital ledger that multiple people in the network have access to. Bitcoin has very low and almost nil transaction fees, the present online transaction methods charge a good percentage of the transaction as a fee.

Bitcoin uses peer-to-peer technology and facilitates instant transactions using the network. The Bitcoin network has individuals and companies that own the governing computing power, it is comprised of miners. So who are the miners? Well, miners are people who help to process transactions on the blockchain, they are compensated using rewards and transaction charges paid in Bitcoin.

They are a decentralised authority who manages the reputation of the Bitcoin network. Using the Bitcoin mining process, the cryptocurrency is released into circulation.

Mining requires discovering new blocks by solving difficult puzzles, these blocks are added to the blockchain. One Bitcoin can be divided to a maximum of 8 decimal places; this smallest unit is called a Satoshi based on the mysterious founder of this revolutionary crypto-currency. You can Bitcoin using a credit card, bank account or cash, it will be transferred to your Bitcoin wallet and you can then use it to make a purchase or sell an item using the Bitcoin as an exchange medium. Every transaction is recorded in a digitally distributed blockchain ledger to maintain accountability.

How Does Blockchain Technology Works?

Posted on by Imarticus Learning

What is Blockchain?

The latest phase of industrialisation is filled with ingenious inventions. Blockchain is considered a ground-breaking technology that has the power to change the world. The Blockchain technology can transform the way we do things on a very fundamental level; it is considered even a bigger breakthrough than the internet which is something.

However, the Blockchain technology is still in its nascent stages and there’s so much that we are yet to discover. So, what exactly does Blockchain mean? Blockchain can be formally defined as the distributed ledger technology that is decentralised and record digital transactions which cannot be altered after input.

The use of cryptography along with decentralisation creates more transparency and instils accountability in the system. Most of us know Blockchain from one of its major applications that is crypt-currencies. It became popular as the revolutionary record-keeping technology behind the Bitcoin. Let’s find out how does the Blockchain technology works.

How Does it work?

How does the Blockchain technology work? Well, that’s a common question from people who are not very familiar with the technicality of this technology. At the core of the Blockchain technology resides the idea of decentralisation and transparency that brings more accountability in the process.

For a basic analogy, you can think of this technology as equivalent to a spreadsheet that is shared with a few people. Now changes made by any individual can be view by all the people and they would easily recognise the person behind this new development. This brings more transparency and accountability in recording a particular transaction.

Blockchain is very different from the spreadsheet and much more advance but it works along with the same principles. The three important terminologies related to Blockchain that you must be aware of are blocks, nodes and mining. Every chain is formed by multiple blocks and each block has three respective elements; the data, nonce, hash.

New blocks are added to the chain through a process called mining. Miners create new blocks on the chain through the process of mining which helps with the new addition. Now mining is not as simple as it sounds and requires Blockchain experts. There are plenty of Blockchain online courses that you can choose from and develop your skillset.

Each block has a unique hash and nonce value and the blocks also have the hash reference from the previous blocks. This is done to maintain the block’s uniqueness and connect it with a valid block so that the information can be traced properly. Let’s talk about the third component that we call nodes.

Nodes are all about the decentralisation aspect of this revolutionary Blockchain technology. It is very important to understand that any single computer or organisation or entity cannot own the chain, it will defeat the purpose of transparency and decentralisation. Nodes can be understood as any form of electronic device that has copies of the Blockchain and helps the network to function.

The network must approve algorithmically the mining of a new block for updating and v verifying the chain. This instils transparency since every new update can be traced and verified. A unique identification number is provided to participants that help to trace their transactions. This identification number is a combination of alphabets and numbers.

Blockchain has the power to dramatically reduce the chances of corruption by ensuring transparency and accountability. This is very useful in the case of any public information as it helps to track the source of change and creates a sense of integrity through its checks and balances. Blockchain has numerous other applications in addition to crypto-currency in the field of healthcare, insurance, supply chain, etc.

Frequently Asked Questions on Fintech

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Example to understand the Fintech domain

Fintech is the short form used to denote the financial technology industry. The Fintech industry has revolutionised the traditional banking and finance industry by leveraging progressive technology to boost customer satisfaction. In the contemporary digital landscape, customers are more accustomed to using their smart devices for purchasing goods and services and thus making payments for the same.
The growth in online transactions as a result of booming e-commerce led to technological progress in the field of finance. Fintech is the amalgamation of finance and technology. It is the infusion of cutting-edge technology to solve the challenges faced by the traditional banking and financial services industry. Fintech is making the banking industry more efficient using tools like chatbots, mobile applications, UPI payments, etc. to improve customer satisfaction.
PayPal is a very relevant example to understand the Fintech domain. PayPal is a leading Fintech company that helps to facilitate personal and business transactions, payments and credit services online using the application or through its website. PayPal has an international presence and is valid across 200 countries worldwide and is accepted by millions of websites. It is also used for other transactions like online donations, fundraising, etc.

How Do I Learn Fintech?

Technology is touching all industries and transforming the way the world runs. Finance is one major industry which has made the best use of technology. The integration of Finance with Technology to bring in the required automation in the Finance sector is referred to as FinTech. FinTech is everywhere. It has enveloped us in a way that it has become a part of a modern man’s life. FinTech finds its use in various domains like Payment apps and even cryptocurrency!

FinTech is becoming a very popular field to work in. Learn FinTech if you have an interest in going into the field of Finance. To get insights into FinTech, one can start knowing about the major sub-topics which build the FinTech industry like lending, borrowing, working of blockchain and cryptocurrency, payments, etc. This will help you in analysing the underlying potential of the industry and also help you in understanding your interest areas in the particular domain.

Various online courses on FinTech are available on renowned online learning platforms. One can enrol in these short-term courses and start gaining perspective on the sub-topics. Also, you can network with people who are already a part of this industry. This will give you in-depth insights on FinTech and its subsidiaries.

What is FinTech Course?

FinTech is a popular term that is commonly used for Financial Technology. FinTech is any company that makes use of technology to deliver its services. It deals with multiple functions like managing cryptocurrency, payments, etc. FinTech makes it easy for consumers to manage their finances and also transact with ease.

With FinTech, the space of accessing finance has changed drastically. FinTech has brought about huge and major changes in the field of traditional finance and investments. FinTech provides modern tools that are disrupting the way consumers manage their finances. FinTech has demonstrated its utility in Crowdfunding platforms, Blockchain, Payments, Insurance, Robot-Advertising, Stock-Trading, Budgeting apps, etc.

The FinTech course is an introductory course that gives insights on FinTech and how technology is bringing about a major change in the field of Finance. FinTech courses are designed for Finance professionals who want to keep themselves at par with the industry and also for the newbies who are willing to join the Fintech or Finance industry.

FinTech courses are brought forward by various online learning platforms. They collaborate with industry experts and professors of renowned Universities to compile the best material on FinTech and its subsidiaries. These courses also provide multiple certifications which can help in increasing your credibility in the field.

What Is the Blockchain Course?

Blockchain is a list of transactions which are stored on any network and can be accessed when needed. Blockchain is used by various cryptocurrencies like Bitcoins to store and record transactional data. Blockchain technology is finding great uses in various businesses as it can keep a record of events, contracts, personal information like medical history, monetary transactions and a lot more.

Blockchain has disrupted the way data is stored and managed. It is increasingly becoming popular due to multiple usages and also the automation of various industries and companies. Blockchain is a relatively new field where everybody is getting to know how it works and then converting their knowledge to potential gains.

A Blockchain course can help your cause. Various courses on blockchain and how it works is present on various learning platforms. A course on the blockchain can help you in knowing how blockchain is helping businesses. It will also give you insights on how this technology can add value to a particular business or a project.

A course on the blockchain will help you understand its basics, how it is tackling the prevailing problems, types of blockchains and how blockchains are disrupting the whole business space and creating a whole new world. These courses will help you enhance your knowledge and understanding of the subject. Also, you can seek employment is connected fields after taking up a blockchain course.

How Do I Get My Blockchain Certification?

Blockchain technology has brought about a disruption which has affected the whole world. Blockchain is creating a lot of jobs as companies need people who understand how blockchain works so that they can make the best use of the resources in hand.

To get into the Blockchain space, you must be certified. Also, you must have relevant and in-depth information on the subject matter to find your space in the blockchain industry. Getting certified in any aspect of blockchain would be the first step. One can get Blockchain certification on innumerable online and offline learning platforms. Also, certifications give you the required knowledge in the subject matter without burning a hole in your pocket.

Certifications are universally accepted and have an instant impact on your career as they give out an impression that the person is well-versed with the topic. Blockchain certifications can be received after successfully completing various learning modules and assessments provided by the offline and online learning portals.

Using these learning portals, you can upgrade your knowledge and understanding of the topic and become more employable. Blockchain certifications cover multiple aspects on the topic and can get you ready for the market. With blockchain certification, you can get ready for the next big step of your career.

Also Read: All You Need To Know About Fintech Technology

How Challenging Is the Lockdown for Fintech Players?

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Humanity is facing a tough time today. The Novel Coronavirus is spreading at a fast rate globally. Some countries are tackling it hard while some have lost many of its citizens. Almost all the countries are under lockdown and all the economic activities have hit a speed bumper. People cannot go to banks and ATMs regularly nowadays as compared to normal days. A lot of financial activities are done through online transactions and digital payment methods are witnessing a rise in demand.

There are a lot of firms that had a huge cash inflow/outflow which has been affected due to lockdown. A lot of small vendors are closing their shops who do not deal in digital transactions. The Fintech players have been posed with the challenge to fulfil the demands of people and to maintain economic stability in these tough times. Let us discuss more the challenges faced by Fintech companies during this outbreak.

Many people earn their meals by working every day. If they don’t work, they can’t survive. Many countries have ensured necessary funds for these people and it is the job of a Business correspondent (BC) to deliver the funds to them. They help people who have less financial knowledge in accessing their bank accounts. Many economic activities have come to a halt and the cash flow is decreasing. It is very tough to provide cash to these people as many financial institutions are reporting cash shortage issues. The BCs of Fintech companies who were looking to expand themselves in rural areas are now facing the challenge of cash shortage. The financial exchanges of these rural people are mostly in cash and it is not possible to make the rural economy cashless overnight amidst this crisis.

There are restrictions on human movement because that is the only cure till now. The Fintech companies have to provide cash to these BCs and then the BCs have to ensure this money reaches the one in need. People cannot gather at one place to collect their share because of fear of an outbreak. The Fintech companies will find it hard in authentication, accessibility, and distribution.

A lot of people are shifting towards digital payments due to cash shortage. The load on servers of this Fintech firms is also increasing day by day. The fear of data loss or server lag is always there. The Fintech players have to adapt and bring technological advancements so they manage the load. If the server crashes, then a lot of transactions will get affected.

The data/information which is generated each day has also to be secure. A lot of people are using the services of Fintech firms and they are trusting them with their valuable transactions and personal information. The Fintech players have to cope up with the security challenges.

There is a lockdown imposed in many countries and is strictly monitored by the authorities. The Fintech players and their BCs have to cooperate with the local authorities and they have to make sure they follow the permissions and guidelines.

Due to this epidemic, cross border transactions and activities are witnessing a fall. The Fintech players have to make sure they manage the loss. They have to find innovative and secure ways for the demands of customers across the border.

Conclusion
There is a lot of load on these Fintech players but it is also an opportunity where they can leave an impact on their customers. The firms which will adapt will come out stronger from this situation. After all, there is hope to hang on! This article was all about the challenges faced by Fintech players amidst the lockdown. I hope it helps!

How Blockchain Can Be Used to Change Space Industry

Posted on by Imarticus Learning

Blockchain technology is a decentralised technology, which is stable and flamboyant. There are millions of systems around the globe through which the information passes; still, it will be unmodified. One can see the information in blockchain technology but cannot alter it. A lot of digital payments are done through blockchain technology. Besides giving full transparency and stability, blockchain technology supports peer to peer sourcing.

It has high-security measures which are a combination of hash functions and other security protocols. In the context of the space industry, there is a lot of data generated. For continuous and unambiguous data, blockchain can be a boon. Let us dive deeper and understand the pros of blockchain in the space industry and exploration.

Emerging technologies like blockchain and decentralised data are making a lot sound in recent years, but the technology is still new to people hence its very hard to imagine any application of it in our life. There are many commonalities that tie blockchain and space. Blockchain describes a very different way of data storage. That is decentralised too, having a common database but more secure as blockchain uses cryptographic algorithms.

How Blockchain technology can be used in the Space Industry?

The cryptocurrency application of Blockchain is popular in the finance industry and other sectors. Blockchain is already in use for several years in the space industry. Some prominent applications in this context are:

Supply Chain Management
Keeping track of supplies in space is very important in space. Blockchain is used in man-aging big space construction projects and managing the resources for space exploration.

Satellites as nodes for better and secure communication
The satellite network can be used as a node in the chain of information where you can store as well as perform transitions. This allows the space sector to give an important contribution toward better and secure communication.

Space asset tokenization
Asset tokenization in space is not an easy task; it requires enabling a crypto token-based
ownership of space assets including spacecraft, satellite and potentially astronomical bodies such as asteroids.

Blockstream was launched in 2017, which became first-ever state lite to use blockchain technology. SpaceChain first used blockchain in space in 2018 that formed the base for the constellation of satellites to support the blockchain-based operating system.

Some major predictions of blockchain in the space industry are very intriguing as their development is happening at an accelerating rate. The investment for the space industry has gone down in last years but the introduction to new technologies like blockchain and others is going to change the face of the space industry. It will help a great deal in cost-cutting and other developments.

Space Giants SpaceX and Amazon, which has large investment are sending a large fleet of satellites which could increase the risk if collisions.

Commercialising Space Exploration using Blockchain

Commercialising space exploration will be far more efficient using revolutionary blockchain technology. The feature of tokenization of a spacecraft allow institutions to prepare different component of the spacecraft. Big Institutions like NASA and ESA take this
opportunity to obtain things efficiently with more clarity and origin.

SpaceX and other companies are working on commercialisation of space exploration for a very long time but it is not feasible the point of time. With all these progressive new technologies, new avenues are opening up every day.

Conclusion
Blockchain is a cutting edge technology which is changing the approach to work for many industries and the Space industry being one of them witnessing the same. With every advancement in space industry Blockchain is being used and it is cost-saving, accurate and secure for the space industry.

Why Fighting COVID-19 Needs More Than Blockchain to Succeed?

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It’s been more than three months since the COVID-19 started spreading from Wuhan city in China in the whole world today. There are around more than 18 lakhs cases reported in the whole world. At present, there are more than 4 lakh cases in the US alone. COVID-19 has spread like anything in the whole world today.

Every other country is shut down and is under lockdown. Due to lockdown, every other company is suffering from daily loss. Also, different companies are trying their level best by coming with innovative ideas and crypto startup and other different ideas to tackle the pandemic using blockchain and decentralization.

Moreover, ideas are coming from everywhere to tackle the situation whether it is from analytics companies for prediction or reporting.

These ideas are much appreciated. People are working hard to share their beliefs using technology like Artificial Intelligence and Machine Learning. But there’s a need to check about what all ideas are practical and possible to implement. They should not be used for marketing strategies.

Data is considered to be a very important part while making a prediction and studying something. Data is the key role used for making predictions these days which helps you to generate insights. For a Data scientist, data is considered to be everything. The more the amount of data, the better is the predictions made from it.

China is considered to be well advance in using technology’s but the data shared by china of patients and disease was inaccurate. It consisted of false information. Many leaders have shared their disappointment with china. This is the reason why blockchain technology will be bad because of the wrong input of the data which would result in the wrong output.

What All Can Be Done to Overcome the Pandemic Crisis and the Coming Recession?

No one can deny this fact that the year will change the usage of different technology which is a great turning point and also creativity. Nothing will be the same again. People are losing jobs constantly across the globe due to the great impact in the IT industry. When we will start the economy again nothing will be like a similar situation like the previous one. We will see the increased use cases of Artificial Intelligence and Machine Learning along with tech like IoT & Blockchain to develop systematic services and other different applications.

Previously discussed why blockchain cannot be considered as one of the solutions due to inaccurate data and there is no need to make it inflexible. But the technology presents several other applications in the banking sector like loans, payments, and supply chains, etc. Targeting the payment service can turn out to be an important factor in terms of success. The US-made sure that freelancers and people working from home workers are paid in time by digitalizing which is not a new thing for the country. This would result in complementing the insurance and fund distribution.

Countries like Japan and Sweden are well advanced digital currencies. Different banks have come out with a piece of information that focusses on the future of payments and cash by noting down the fact a person can even get corona transmitted through cash. People are focusing on how to reduce the flow of cash and switch to the digital currency where blockchain is the game-changer. These points can be questionable but banks constantly are trying to make people believe in cash and are requesting contactless payment methods. It is proved that how digital currency can help in this pandemic situation and the use blockchain with these sorts of applications can be the game-changer.

Also Read: BLOCKCHAIN: A SOLUTION FOR POSITIVE SHOPPING BEHAVIOURS AMID COVID19

Blockchain: A Solution for Positive Shopping Behaviours Amid Covid19

Posted on by Imarticus Learning

The world is battling against the recent pandemic of the novel coronavirus. The whole world has come to a standstill and everyone is trying to practice social distancing and safety measures. Not only medically, but this pandemic has also challenged people financially, mentally, etc. We are lucky that we have so many technologies that are doing our share of work. One such technology is blockchain which is helping a lot nowadays amidst this pandemic. In this article, we will discuss the benefits of blockchain technology in the shopping sector amidst this chaos.

What is Blockchain technology?

Blockchain is a technology that supports payments through digital channels. It takes care of digital information/data during online transfers. It allows the user to share digital data with any person and that information can only be read. Blockchain ensures that people can only access information about digital payments and history. They cannot change or manipulate the data/information.

The power of authority is equally shared among people as there is no central controlling point in blockchain technology. Security is the main responsibility of blockchain. Blockchain is widely used in digital transactions and cryptocurrency distribution. Let us see the positive effect of blockchain technology on shopping behaviors of people.

Less portal charges

You can transfer information from one point to another using blockchain technology without any transaction fees or portal charges. The block/information which is to be transferred is passed on to the millions of computers around the globe before reaching its final destination. If someone tries to falsify this information, then he/she has to falsify all the million checkpoints too through which the information is passed before reaching its final location.

For example, whenever we do a credit card transaction on any online portal, we give a few transaction charges which are taken by the credit card company or the service provider. There are no transaction charges cut by the blockchain technology in such transactions. Amidst this pandemic, we can apply this technology worldwide to reduce buying costs for all the people involved.

Distribution of control

There is no central authority in the blockchain. It is a decentralized technology. Covid19 has forced people to stay in their homes and work from home. If there was a centralized technology, then all the information would be stored on one entity only and people would have to monitor and control it, if any damage comes to the central authority, it can result in complete data loss and security concerns. Blockchain enables information sharing by everyone without being manipulated. This will surely help in shopping and marketing amidst this novel coronavirus outbreak.

Transparency and Stability

If you want to look up to transactions of any cryptocurrency institution, you can easily see it using blockchain technology. But you can only see the transactions and cannot manipulate them. For each block, a hash code is generated and it is hard to break all the security protocols. All the transaction done with a public address on blockchain technology is visible to everyone. This also forces these firms to follow honesty. Blockchain technology is transparent and secure at the same time.

Since human interaction in physical terms is impossible amidst this outbreak, this technology can clarify the doubts of buyers and can also be trusted because of its transparency. Immutability is also a major concern in blockchain technology. One can understand these things practically through various blockchain online courses.

Note – A hash code is generated through a hash function in which the input string is changed into a different output string. The output string is generally large and tough to decode. Any small changes made in the input string affects the output string by a huge margin.

Conclusion

The human society has taken a huge blow due to covid19. Amidst this pandemic, blockchain technology can ease our difficulties by modifying our shopping habits. One can easily find many blockchain online courses to start learning. It will help us in adapting to the current scenario. This article was all about the pros of shopping through blockchain. I hope it helps!

Also Read: Why Fighting COVID-19 Needs More Than Blockchain to Succeed?

AI in the FinTech Industry: What Will 2020 to 2025 Look Like?

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The financial industry has, for long, been keen followers of technological advancements for their own benefit. Many big names in the industry have been early adopters of disruptive technologies in a bid to streamline processes, reduce manual labour and negate the chances of error.

Artificial intelligence is a paradigm-shifting field that the financial industry has forayed into very recently, sitting still at the tip of the iceberg. Here is a breakdown of the trends, growth, and scope of Artificial intelligence in the FinTech industry during the years to come.

AI in FinTech: Global Market Share, Size and Investment Analysis

In 2019, the AI in the FinTech market was estimated at USD7.2 billion. By 2025, this figure is expected to reach a staggering USD35.40 billion, according to a Mordor Intelligence report. The Compound Annual Growth Rate (CAGR) has been put at 31.5% for the years between 2020 and 2025.

This double-digit surge is no doubt a result of exponential technological advancements and deeper penetration of the internet. Software tools are expected to receive the largest market share because the need of the hour, and the foundation of all further processes, is the extraction of data.

When it comes to deployment, cloud-based AI developments are expected to rake in the highest CAGR in the following years when compared to on-premise deployments. This goes hand in hand with the shift in data storage and management from on-site servers to remote, centrally-controlled cloud silos to facilitate better access and higher security.

Regionally, AI in FinTech is gaining traction across many geographical splits. The current largest market is North America; however, Asia Pacific is expected to see the fastest growth in the coming years. This comes off the back of massive research and development investments in developed economies in the United States and Canada. Europe, South America, Africa and the Middle East will also see a surge in AI adoption and advancements, though perhaps not at the scale of Asia Pacific as yet.

AI in FinTech: Trends and Growth

Fraud prevention: AI is expected to be deployed the most to ensure fraud detection and prevention. Naturally, this segment will drive most of the IT expenditure in companies of varying sizes. This trend appears in a bid to keep up with the changing face of fraud in the FinTech industry as well as the greater proliferation of digital channels and the need to secure them all.

Transactional bots: As financial entities solidify their online presence, transactional bots and digital assistants will increase to keep up with remote demands. Apart from managing customer relationships, these assistants will also be equipped to deal with term life renewals, cheque or balance notifications, withdrawal limit warnings and more.

Risk profiling: AI will become a massive driving force in evaluating client credit risk and creating profiles. Using historical client data and outliers, logical algorithms can segregate risks by range, allowing advisors and risk managers to make more accurate mitigation decisions.

AI in FinTech: Challenges

Cultural changes: With changing landscapes and evolving customer demands, cultural shifts within the company are inevitable. Employees at all levels must be reoriented so that the introduction of AI becomes helpful rather than disruptive.

Security: Increased exposure to digital forums, ironically, also means being laid bare to cyber-threats. While adopting artificial intelligence in any form, financial entities must strengthen security systems at the same time.

In light of the changes to come, it is imperative that new-age students enrol in a FinTech online course that encourages deeper thinking. With every shift in the level of computational power, FinTech industry leaders will be seen integrating beyond-human technologies into nearly every critical stage of their operations. The leaders of tomorrow, then, will benefit from a FinTech online course that preps them to make and implement these changes with minimum disruption and maximum confidence.

Coronavirus: New Challenges and Opportunities for Fintech

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The COVID-19 pandemic has so far infected over 1.2 million people and killed over 60,000 people, and has spread to more than 205 countries. While at some locations a handful of cases were reported, others with early community transmission have a few hundred. Unfortunately, at geographies with widespread transmission have reported thousands of cases.

This pandemic has caused major disruption to global economies owing to the containment measures and lockdowns all over. It is quite evident now that because of the virus-containment measures global economies will be hit to a great extent. Lockdowns, social-distancing and other coronavirus-containment measures have led to a massive fall in the global economic activity – plummeting consumer demand, fall in crude oil prices, crash in global stock markets, and equally decreasing global banking revenues.

The COVID-19 outbreak has had far-reaching implications for almost all possible aspects of the economy. From consumer, retail, manufacturing, entertainment, packaged goods, sports, travel, etc. every sector has been impacted in some or the other way. This pandemic is certainly devastating for many companies, but that’s not same when it comes to Fintech. Though Fintech is feeling the pressure of the increasing crisis, but this crisis is also shining a spotlight on the power of Fintechs.

The coronavirus pandemic could be devastating for many companies, but it’s also shining a spotlight on the power of Fintechs. For Fintech it’s a mixed-bag of challenges and equal or more opportunities. Let’s take a look at the challenges and opportunities for Fintech:

Challenges Facing Fintech

Jolt to Venture Capital Funding – Since, the markets are highly volatile there is limited or minimum scope of fundraising activities as investors and funding groups fall back to more cautious positions. With uncertainty over the pandemic getting over, the only hope is seen only in the medium-term where leaner fundraising Fintechs will excel again.

Conferences and Events cancelled or postponed – To break the chain of transmission of the coronavirus and, almost all events across sectors have either been cancelled or postponed. The cancelled or indefinitely postponed conferences and events are a loss too Fintechs as they help develop new business and strengthen business relationships.

Decrease in payments – Fintechs which handle payments could witness a fall in activity from consumers because of the dwindling economy.

Consumers may be less willing to invest savings – Fintechs with a focus on consumer investments may be impacted by consumer wariness about investing during such a volatile moment. Even those investors lucky enough to be relatively insulated from the economic fallout may choose to put their money in safer options for the time being.

In such a volatile market, the consumer exercises caution which and refrains from making huge investments.   This impacts the consumer investments in Fintechs.

Opportunities For Fintech

Modernised workforces are more likely to flourish – Companies sporting higher levels of modernisation and distant workforces are better positioned to not just survive but also to thrive during this difficult moment.

United approach to adopt contactless payment systems – As the world suffers through COVID19 pandemic, people from all corners of the world are finding ways to reduce the use of currency both paper and coins which changes hands many times over (possible for the virus to lurk over the surface). Encouragement from all sectors to call for digital / contactless payment systems will boost the growth of Fintechs.

High chances of reversing rollbacks on regulation – Many countries who have managed to curb the spread of coronavirus are likely to relax regulations on certain industries in order to spur economic recovery. Fintech is one of the industries targeted as part of that recovery program.

Preference to digital systems – Amid lockdowns and self-quarantine period, it has become imperative for banks to incorporate the best of digital solutions. Fintechs are well-positioned to step in to offer solutions to replace legacy systems.

Top 5 Fintech Trends Everyone Should Be Watching in 2020

Posted on by Imarticus Learning

The finance industry has undergone a massive technological transformation in the past few decades. This amalgamation of Finance and Technology has given birth to a new trend in the finance industry called Fintech. The Fintech industry is comprised of companies that leverage cutting-edge technology to provide creative solutions to traditional problems which were earlier unaddressed by the traditional system of banking and finance. The emphasis is on providing a seamless experience for the customer and boosting customer satisfaction by eradicating the roadblocks using technology.

With the proliferation of the internet and smart devices, consumer behaviour has changed in general. Consumers are more aware and more demanding today as compared to a few decades ago. The general technological advancement has been such that the need to provide instant solution to the problem is paramount. People are buying goods through the web using their smartphones. Now without the latest technological evolution this wouldn’t be possible, to cater to such growing demands from different industries the finance sector had to level-up and satisfy the needs of the customers. Digital wallet, digital banking, mobile banking, etc. are recent developments in the Finance industry that can be categorised under Fintech.

 

What’s Trending In The Fintech Domain?

The Fintech industry itself has evolved to a great extent in the last few years. With mobile banking and digital wallet being quickly adopted by the masses, some of the latest developments are still to be seen. Let’s delve deeper into the latest trends in the Fintech domain.

Contextual Banking

Contextual banking is the need of the hour, with the increase in hyper-personalization services customers are getting used to more specific products and services. The one size fits all approach is obsolete in the age of AI and machine learning. The contextual banking model is based on providing the right products or services to the customer at the right time and place. With the growth of big data and AI it is getting easier to provide contextual banking to customers based on their historical transactions and other relevant data.

Robo-Advisors

Technology has made it possible to train robots to carry out complex tasks that earlier required human intellect and interference. Robo-Advisor is a recent development in the Fintech industry where robots will provide complex investment and asset management solutions to customers. The advisory services can be availed online and require very minimal to no human involvements. Robo-Advisors factor in the risk-return profile of the customer and then accordingly provide investment solutions.

Robotic Process Automation

Robotic process automation continues to be a major trend in the Fintech segment. It not only helps the Finance companies to be more efficient in their functioning but also helps them to effectively comply with the latest rules and regulations set by regulatory bodies. The automation is not just limited to substituting human labour and performing a task but also includes suggesting improvements to the existing processes.

Blockchain

The recent technological developments have also exposed us to a new league of criminals who are tech-savvy and technologically advanced to break into our online portals. In the contemporary digital world, data is the real deal, identity fraud and theft of data, in general, is a major concern with increasing dependence on technology. Blockchain is being adopted to boost security in the financial services industry, from smart contracts to digital payments and identity management it has a whole lot to offer.

Innovations In The Mobile Payment Systems

With the increased internet penetration and affordable smartphones, the whole world has entered the digital revolution. Transferring payments using smartphone applications has been the norm since the past couple of years and rightly so given the convenience it brings to the customers. The technology however is not static and drives further innovations into this Fintech segment, like for example biometric access control that includes facial and finger print recognition. Other developments include suggesting users on their purchase decisions by factoring in their transaction history. There is much more going on in the mobile payment segment of the Fintech space.

Conclusion

The Fintech industry is still in its nascent phase and is growing by the day. It has proved to be a game-changer in the Finance industry and still has a lot more to offer.