Last updated on May 23rd, 2024 at 10:19 am
Fintech is a new-age industry that runs on technology, delivering better financial services to consumers. It provides varied technological solutions to improve the financial sector through innovation with the help of the internet. This often gives birth to innovative models of business and new businesses.
Fintech is bringing a revolution in the financial sector worldwide with its innovation. Financial accounting has been an integral part of financial operations; since the inception of fintech, there have been many changes in the way financial accounting is carried out.
An online MBA course can be a great way to learn more about Fintech.
Technologies used in Fintech Companies
Fintech uses technologies like Artificial Intelligence, blockchain, robotic process automation. Artificial Intelligence or AI is used in predicting and analyzing the expenses of customers, which further enables companies to have a better understanding of their clients. Artificial Intelligence is also used in providing customer services through Chatbots.
Robotic Process Automation or RPA is a technology that automates accounts payable and receivable more accurately, eliminating manual labor and error. Through this technology, invoices are sent to the customers quickly, which further eliminates chances of delay in getting payments.
Big Data is used to apprehend the investment habits of clients and turbulence in the market, creating new business models and strategies. This technology helps in detecting fraud and making better marketing strategies.
Blockchain is used by the finance industry to do away with third parties to carry out a transaction. It is estimated that there will be a 22% CAGR in the Fintech market within 2025. As per the data of May 2021, UPI participation has increased by almost 15x from 2018 with 2.6 billion transactions, approximating around $68 billion.
Factors that have led to the growth of Fintech start-ups in India:
- Capital is present in abundance, along with a very lucrative investment ecosystem
- Technology is rapidly advancing in the country
- Almost everyone has access to the internet and smart-phones
- There is a hunger for new technology and innovation in people
- Establishment costs and transactions have been reduced to a significant level through the use of cloud services
- Initiatives from the side of the government
- There is still a huge rural population that lacks access to financial services
The number of Fintech start-ups has risen to 2,565 from 737 in the last 7 years. Fintech Companies like Paytm, Razorpay, Cred, Pine Labs, Capital Float, Mobikwik have emerged as giants in the Indian Fintech market.
Conclusion
The initiatives taken by the government to penetrate smartphones and internet in the society have given a boost to fintech start-ups and technology in the country. A huge population has switched to digital modes of payment. Fintech has also boosted insurance companies and has made all the formalities hassle-free. It has also enabled these companies to predict the requirements of their clients better.
This has helped them provide better customer satisfaction and support. After analyzing the trends in recent years, it must be acknowledged that the Fintech industry has a huge number of jobs to offer. An MBA in Fintech can prove to be a good choice for people trying to seek jobs in this sector.
An MBA in Fintech helps to understand technologies such as Blockchain, Artificial Intelligence, and Cloud Computing using coding.
Gaining deeper insights into these technologies will increase the chances of getting better jobs. There are many online MBA courses available on the internet.
These online MBA courses are also cost-effective during this pandemic when most institutes charge a hefty amount.
