Fintech lending is transforming the financial industry by offering efficient and faster financial services than traditional loan processes. There are estimates of the global Fintech lending market reaching almost $4,957.16 billion by 2030, with a CAGR of 27.4% from 2021 to 2030. 

With the growth of the Fintech industry, digital lenders use data analytics technologies or cutting-edge AI technologies, disrupting the traditional loan sector. To subsist in the tech-heavy competitive market, traditional lending and financial institutions must learn financial technology and Fintech lending. 

Let us explore Fintech lending, its way of working and how it is disrupting traditional loan processes. 

What is Fintech Lending?

Fintech lending uses digital solutions and technologies for facilitating lending processes. The process uses APIs so that lenders can take informed and quick lending decisions. The services include business loans, peer-to-peer lending and different tools for finding the best loan. Payments are great with Fintech as customers experience secure and fast transactions on their mobile devices. 

With Fintech, lending opportunities are higher as lenders with poor credit scores can also apply and get loans. API connections accelerate the processing times so that timely fund access is available for peer-to-peer lending and small businesses. 

Fintech companies have revolutionised lending using data analytics and AI. For streamlining payment processes, they use various kinds of digital media including mobile wallets, online bank accounts and e-commerce accounts. There are minimal scopes of fraud and borrowers get timely access to the funds. 

Fintech lending lets lenders apply for different financing solutions from any part of the world. This is a self-reliant and initiative-taking approach to money management. 

Innovations and Trends in Fintech Lending and Credit

Let us take a look at some of the innovations and trends in Fintech lending and credit:

• Alternative credit scoring

Fintech lending and credit use different data sources for ascertaining the creditworthiness of a customer beyond traditional credit scores. Alternative credit scoring uses different kinds of non-traditional data like social media behaviour, payment history and other online activities for assessing credit risk. 

Therefore, businesses, as well as individuals with no or limited credit history, have credit access, thus expanding financial inclusion. 

• Micro-lending and digital wallets

One of the most popular Fintech lending and credit solutions is none other than mobile wallets or digital wallets. With these wallets, customers can borrow, store and transfer money digitally. 

Micro-lending provides small loan amounts for a short span of time. This lending is facilitated through digital wallets. People with a limited credit history or belonging to emerging markets can access credit through this process. 

• Online lending platforms

In the Fintech space, online lending platforms, which are also called peer-to-peer (P2P) lending platforms, have become immensely popular. Through these platforms, borrowers can connect directly with investors. There are no financial intermediaries in between. 

Online lending platforms assess credit risk by using data analytics and various kinds of algorithms for determining loan pricing. This is the reason, they can provide lower costs, faster loan approvals and improved transparency compared to traditional lenders. 

• Blockchain-based lending

Blockchain technology offers a transparent and decentralised ledger for transaction recording. Such lending platforms reduce fraud, remove the need for intermediaries and improve transparency in loan transactions.

Smart contracts (they are self-executing contracts) are recorded on the blockchain. This helps in automating repayment terms and loan agreements.  

• Open banking and APIs

In open banking, businesses and consumers can share their financial data securely and safely with authorised third-party providers. This is a great innovation in Fintech lending and credit. 

Application Programming Interfaces (APIs) provide integration and data sharing between different service providers and financial institutions. This aids in improved risk assessment, quicker loan processing and improved customer experience. 

• Machine Learning (ML) and Artificial Intelligence (AI)

When you learn financial technology, you must have good knowledge of cloud computing, ML and AI. A Blockchain course is also useful. There is extensive use of Machine Learning and Artificial Intelligence in Fintech lending and credit for automating processes, making accurate credit risk assessments and analysing huge volumes of data.

Virtual assistants and AI-powered chatbots are used for processing loan applications and offering customer services. On the other hand, Machine Learning algorithms help in predicting credit risk and analysing borrower data.  

• RegTech for credit risk management 

RegTech or regulatory technology is an excellent Fintech solution for credit risk assessment. Regtech solutions use automation and data analytics for ensuring compliance with various regulatory requirements. These include KYC regulations, anti-money laundering regulations, and so on. 

With this technology, lenders can assess their credit risk while complying with various regulatory obligations. 

Fintech Aids Value Addition to The Lending Industry

There is no second thought that Fintech has brought a revolution in the lending industry by providing borrowers with more choices and access. Moreover, Fintech offers innovative financing solutions to customers as per their needs. 

With the advent of Fintech, small businesses as well as P2P groups have access to convenient funding for improving their financial well-being. Such funding also helps them in operating independently. 

Fintech lenders use data for offering capital to a wide range of borrowers. At the same time, they can maintain safe lending practices, making a more competitive market. 

In Fintech, the lending process is streamlined thus reducing the time and cost of lenders and borrowers alike. Borrowers can now receive fast cash with minimal hassles during loan application. As a result, the Fintech industry is expected to experience massive growth in the coming years. 

Conclusion

It is needless to say that the Fintech industry is developing new fronts to cater to more customers. By using various Fintech platforms you have faster access to credit along with lighter underwriting and quick processing times. As this sector is new and developing, there are ample job opportunities opening up as well. 

If you want to make a career in the Fintech industry, you have to learn financial technology in the first place. Undertaking a Blockchain course along with knowledge of cloud computing are an added advantage. 

Imarticus Learning is a great platform where you can pursue a Professional Certificate in Fintech in collaboration with SP Jain School of Global Management. An excellent course, students can have an in-depth understanding of different aspects of Fintech along with strategic and practical training on technologies like Blockchain, cloud computing, API, Machine Learning, Artificial Intelligence, RPA and IoT. 

Enrol in the course now and transform your career!

Visit Imarticus Learning for more information. 

A blockchain is a simple digital ledger that records transactions and assets in a business network. They are digital identity systems that provide an impenetrable theft-proof digital safe that benefits enterprises with their security systems. Cryptocurrencies, a trend which bloomed not so long ago, are a part of blockchain. 

In the realm of financial technology, new companies are emerging on a daily basis with new modern methods like cloud computing to do business. They realise the impact of blockchain, which is causing transformation in the fintech industries. They are also aware that blockchain can digitalise the entire fintech sector by saving time, cutting costs, and reducing human errors and overall involved risks.

Impact of blockchain on fintech 

• Crypto lending

One of the factors linking blockchain and fintech industries is crypto lending. It means that an individual can lend his/her cryptocurrencies to any other individual and borrow some from them, too. Crypto lending users act as a medium through which one is connected to the financial market, where they can buy and sell cryptocurrencies. It also serves as a safe passageway to transfer assets. Learning more about these financial technology courses can give you an edge in the coming times.

• Auditing

Audits provide credits to financial statements and make shareholders believe that their accounts are safe. The main reason auditing is a part of blockchain is that it reduces the cost of monitoring and helps auditors control information. This is just one of the primary benefits of blockchain auditing.

• Cost

Blockchain, being a digital ledger, doesn’t require multiple people working on it. Notably, it cuts almost 50% of the company’s expenses. There is a saying in the fintech market, “time is money”. Blockchain technology once again proved itself to be the most popular and relevant change in the fintech industry.

• Digitalisation

Blockchain truly can transform the entire financial technologies sector through digital methods. 

Nowadays, banks are fully aware of blockchains’ benefits and capabilities and prefer these digital methods to the old traditional ones. This is causing people to explore all digital options available in the market to act as a safe passageway for their transactions

Advantages of blockchain in finance

Blockchain has an immense advantage in the financial industry, some of which are listed below:

• Reduced risks

Blockchains use an algorithm called a cryptographic algorithm to record transactions. This algorithm is paving the way for financial institutions to reduce risks whilst making a transaction. Adaptation of blockchain reduces the risk of fraud by removing all third parties and intermediaries. 

• Transparency

Since blockchain is a digital ledger, it can be accessed by multiple devices at multiple locations at the same time, which makes all the viewers view the same thing resulting in full transparency. It provides its consumers full control over their information, and the doubt of a company hiding something from its customer is completely ruled out.

• Capital optimisation

Since blockchain provides its consumers control over their information, making them independent of doing things on their own, additional operating costs for banks are reduced. Its digital nature requires no human to be employed to look after the account, thereby saving a great sum of money annually.

• Enhanced security

Blockchain’s cryptographic algorithm is a complex security system. It stores information in the form of blocks, which, once created, cannot be altered again, making the account end-to-end encrypted and fraud-proof. Every new block that is created to store information is connected to the previous block, making it impossible to crack.

• Reduced human error

Human beings are prone to errors. As blockchains are digital, after encoding the data, it’s next to impossible to alter it as the block that stores the data is permanent and can’t be changed. However, blockchains are not absolutely impervious to errors due to outdated data, network time-outs, internet problems, etc.

Conclusion

Finding the best financial technology courses that teach more about applications and help build a career in data analytics and/or bag a great fintech job opportunity may be confusing. However, at Imarticus, you are sure to find the best fintech courses in India. Check out the SP Jain fintech course.In these unique fintech courses, Imarticus offers fintech knowledge through hands-on training from industry experts. Projects involving technologies like cloud computing, real-world case studies and valuable interactions with fintech entrepreneurs are also given the utmost attention. 

Fintech or financial technology can be defined as technology that aims to automate and improve the delivery and usage of financial services. Mostly, fintech is used to help business owners, consumers and companies manage their financial processes more efficiently by using specific applications and software that are widely used on smartphones and computers. 

Initially, the term fintech was used for the technology appointed at the back-end systems of financial institutions. However, since then, there has been a sudden shift towards more consumer-based services. Thus, we now have a more consumer-based definition. Imarticus’ fintech program can help you apply your skills in not only the financial sector but also industries such as retail banking, education, investment management and nonprofit organisations.  

What is fintech and how is it used?

Broadly speaking, the term “fintech” is applicable to any kind of innovation in the ways people have business transactions, starting from the double-entry bookkeeping system to digital money. Because of the smartphone and internet revolutions, the fintech industry has grown immensely. 

Fintech describes a number of financial activities like taking a loan using a smartphone, money transfers, managing investments, etc., without the help of a person. Fintech was originally referred to as the usage of computer technology which was applied to trading firms or banks, and now, it is described as a huge variety of technological involvements in commercial and personal finance.

The most funded and spoken-about fintech startups have some common characteristics. They are designed in such a way that they can be a threat to take over the traditional service providers by serving the deprived section of the population or providing better services. Here are some fintech examples of how it is used:

• Cryptocurrency and blockchain

Cryptocurrency is an exchange medium and it is used as a measuring unit. It has little value but is used as a measuring unit to value other assets. Blockchain is an immutable shared ledger that is responsible for tracking assets and recording transactions. Also, it is used to reduce fraud.

• Mobile payments

Mobile payment is a payment that is made through an electronic portable device like a cell phone or a tablet. Usually, payment services require the user to open a bank account and/or have a payment instrument which is linked to the concerned bank account in order to pay merchants online. 

• Crowdfunding

The usage of capital in small amounts from many people to support a new business idea financially is known as crowdfunding. It uses the easily accessible vast networks of different people through the use of social media and other websites which brings entrepreneurs and investors together. Crowdfunding creates opportunities for many entrepreneurs to gather a large amount of money from anyone who has the amount and is willing to invest.

• Stock trading

Stock trading traditionally refers to any kind of selling or buying of stocks, but, colloquially it means a short-term investment that is made by active investors. Actually, stock trading is quite a risky and difficult enterprise, but with good knowledge, one can lower the risks and work. The selling and buying of shares of companies result in daily changes in their prices. 

• Fintech savings and investment

In recent years, there has been an explosion because of fintech in the domain of saving and investing apps. Many companies have broken down the investment barriers. Every app is surely different in its approach, but all of them use a set of automated small-amount investing and saving methods.

• Fintech lending

The usage of financial technology that helps lenders make more informed and faster decisions is known as fintech lending. This includes the usage of different sources of data that helps to measure the risk in lending and connecting different digital platforms that improve the data by sharing speed.

What is the future of fintech?

The streamlined offerings combined with technology are what enable fintech companies to work more efficiently and help in cutting down the costs that are associated with transactions. Fintech innovations have really influenced traditional banking, trading, financial advice and many other aspects predominantly. For these reasons, traditional banks are now paying attention and they have heavily invested in becoming like companies which disrupt them. 

New technologies, for example, artificial intelligence (AI), machine learning (ML) and data-driven marketing take up the habit or the guesswork of financial decisions. Learning apps not just learn the users’ habits but also engages users through learning games. Fintech is also an adapter of customer service technology using AI interfaces and chatbots to assist customers. 

Conclusion

For becoming a master in fintech, there are many financial technology courses that one should surely check out. Imarticus offers one of the best fintech courses in India. This course will definitely open a lot of doors with great opportunities in this sector. So, gear yourselves up to get enrolled in this fintech course.

One sector which was the first to bring about technological changes in its mode of operations or management was Finance. Ever since the introduction of technology to this sector, the entire department has been revamped and the expected growth of the Fintech global market is 26.2% CAGR (Compound Annual Growth Rate) between 2022 to 2030. So if you were planning a career in the Fintech sector, now would be the ideal time to give a jump start on your dreams, and opting for various Fintech courses online is the ideal first step. However, before you make up your mind on a course, there are a few things to be aware of. This article covers all the essentials of any online Fintech course.

Fintech certification course: What is it all about?

In the simplest of terms, the Fintech industry is all about using technology to smoothen the financial operations of a company or business. Fintech courses are those courses that help you to specialise in this field and give you an opportunity to learn the various skill sets required to set foot in this sector.

What to look for before enrolling in a Fintech online course?

While browsing through the multiple options of Fintech courses you might get intimidated owing to the broadness of this niche. So here are a few factors which you should keep in mind before choosing your course:

Your requirements and preferences

The ecosystem of the Fintech industry is a varied one, which makes it very important for you to understand your preferences and interests beforehand. Based on your requirements, capacity and interest you should choose the stream, and not the other way around. For example, if your interest lies in Wealth Technology or Wealth Tech, then you have to choose an online Fintech course that focuses on that segment. However, if your preferred field is Lending or Digital Banking, then you need to choose your course accordingly.

Duration of the course

The next important thing to consider is course duration. Fintech course durations range from shorter ones of 6 to 12 months or longer to full-fledged courses of almost 4 years. If short-term courses are the ones you are looking for, then the Fintech course offered by Imarticus is your ideal one. Imarticus runs the core module, where the basics are taught at a duration of only 100 hours, while in-depth learning is provided by the pro module which runs for 140 hours.

Practical training

Another factor to consider before finalising your Fintech course is whether the course is paired with any hands-on training or experience or not. With a course that offers proper hands-on experience, you will ensure that your theoretical knowledge is properly transcribed into a practical one.

What topics are taught in online Fintech courses?

Fintech courses are job-oriented, and thus its curriculum is curated by keeping in mind the need for both theoretical and practical knowledge. Any online Fintech course, like the professional certificate in Fintech offered by Imarticus, covers the following subject areas:

• Risk management
• Understanding the startup ecosystem
• Law and policy
• Fintech security and regulation
• Banking and financial services

The Imarticus Fintech course also offers hands-on training on various in-demand technologies like RPA, Machine Learning, Cloud Computing, Blockchain and likewise.

A career in Fintech: Array of job opportunities

After finishing your online Fintech course, you can pursue any job profile in any of the following business models:

• Transaction delivery
• Asset management
• Digital wallet
• Payment gateways

The various job profiles include:

• Cloud Manager
• Data Scientist
• Product Engineer
• Product Manager
• Sales

This is only the tip of the iceberg, and with the rapid growth in this sector, newer job profiles and business models are coming up now and then.

Why choose an online Fintech course over an offline one?

If you’re confused about whether to opt for an offline or online Fintech course, be assured that this dilemma is quite common. Both modes have their own sets of advantages and disadvantages, yet the online one wins the race owing to the following added benefits:

• An online Fintech course is flexible and thus convenient. Such a course offers you the opportunity to learn at your own pace and time.
• Next is cost savings. Not only are online courses less expensive than offline ones, but you also save travel costs.
• Most online Fintech courses are paired with exhaustive career services and scopes of networking with peers, professionals and industry experts.

Bottom line

The Fintech sector is rapidly evolving with time, and to stay afloat, you must be well equipped with appropriate knowledge, current changes and an ability to upskill yourself and adapt to the changes. The correct Fintech course will help you achieve the same with ease, which will not only act as a supplement to your knowledge base but also give a picture of your interest to work in the field to your potential employers.

How the Evolution of Cloud Computing is Accelerating the Opportunities in Fintech?

Cloud computing has changed how organizations of all sizes operate. Using cloud technologies, companies from all domains can provide services to their customers or users more effectively while making collaboration inside the organization easier. With the help of cloud computing, the financial sector has adopted more agile, holistic, and flexible business models. And, same is the case with the banking sector as well, which has evolved to provide faster services and interoperability with the help of cloud technologies.

Without the need for in-house IT resources anymore, fintech companies have also started benefitting from the 24×7 uptime and the ability to support millions of users simultaneously. A good fintech course or a fintech training course can definitely help one learn more about cloud computing for a career in fintech.

Further, the fintech industry relies on scalability and technologies that offer security and efficiency. Cloud computing cuts down costs by not requiring dedicated IT infrastructure and empowers the development of fintech services or applications (loan disbursal applications, payment gateways, stockbroking applications, etc.) while also enabling the continuity of these services and their related business operations such as customer service, analytics and database management.

A reduction in operational costs and the adoption of automation also help fintech companies increase their revenue. For instance, it is easier and cheaper to incorporate artificial intelligence, robotic process automation or automated analysis with the help of cloud technologies.

Benefits of incorporating cloud technologies in fintech

Here are some ways fintech companies of all sizes are benefiting from cloud computing:

• Easier documentation, storage and sharing of financial information
• Security, access control, encrypted systems and ease of monitoring
• Compliance and more effective data governance
• Ability to integrate automation technologies and scale projects
• Effective data management and data segregation
• Disaster recovery and systematic backups

How the evolution of cloud computing is empowering the fintech sector?

Here is how cloud computing is accelerating the opportunities in fintech:

Automation and self-service models: With more powerful cloud technologies, fintech companies are removing the need for manual work for both employees and users. It is also easier to incorporate advanced AI systems for self-service models which are especially useful during this pandemic. Working remotely and collaborating are also easier for employees with the adoption of cloud systems. 

 

• Better security features: The cloud can be secured better and monitored more effectively. Updated cloud technologies are not being offered by companies such as Amazon and Microsoft alone, even small businesses are providing better data governance, encryption and access control. By educating employees and following the right protocol, fintech companies can avoid all kinds of data theft or cyber-attacks. With 360-degree cloud systems, data or services cannot be compromised physically. For example, one cannot take down a fintech application from inside the company’s office or destroy servers anymore.

• Data management: With fintech companies targeting millions of people for using their applications or services, the ability to acquire and work with vast amounts of data is essential. Customers must be onboarded and verified while their data is used for account management and analysis of spending habits. Advanced cloud technologies are making it easier for companies to store this data for employees and AI systems to access it at any given time. This is removing the need for IT experts who need to periodically transfer financial information like in earlier times.

 

Unlike the previous decades, in modern times, companies are able to use high-speed internet connections, making it more efficient to use cloud systems and cloud storage. It makes tasks faster for fintech companies and reduces the need to buy expensive software and storage for multiple computer systems.