Technology has always been the backbone of the financial market for ages, whether it is Share Market or Banks or Insurance companies or Startups, that enable our day-to-day transactions. Finance backed by technology is not new. What is new is the awareness and its wide usage in our circadian life.
Fintech is nothing but an abbreviation of financial technology which broadly means the use of technology in financial services. It is the inventive utilization of innovation in the architecture and delivery of financial services and products. The use of fintech cuts across various business sections such as loans, advisory, investments, and payments. Numerous fintech organizations tackle portable advances, enormous informative data, and analytics to customize products for a diversified segment of consumers.
Fintech has embedded technology at the core of financial services, altering the way these organizations interact with their customers. This immense surge of Fintech institutions has had various positive effects for the community, such as severe competition, a cut down in costs paid by the customer, and more extensive admittance to financial administrations among the underserved. And this is just the beginning.
People think it just has to do with the skillful, imaginative new businesses, with their client-driven, portable first applications, are endeavoring to disturb the traditional financial method of getting things done.
Financial institutions have a long history of embracing innovations – Plastic Cards, chips and pins were once the new revolutionaries. These innovations have transformed into QR codes and UPI. FinTech is changing the shape and conveyance of monetary administrations on a larger scale. Whether it is a startup or traditional financial institution, all are technology savvy in integrating different technical products which enables them to connect directly with the consumer.
From day-to-day transactions and loan disbursements to trade transactions, financial institutions are bypassing the traditional intermediaries and technology to connect directly with the consumer. Fintech isn't just contending with banks but is rather complementing the infrastructure of traditional financial institutions.
Though the industry evokes pictures of new startups and technology, conventional organizations and banks are persistently banking on fintech services for their motives. However, the Fintech industry is assumed to be disturbing and enhancing, simultaneously the various segments of finance.
The topic of how fintech is and ought to be managed is presently the subject of much discussion. As fintech startups don't work like a full-fledge bank or guarantor, they tend not to be dependent on the very guidelines that administer more conventional players in the financial framework.
Of course, the current administrative structure is outfitted towards directing more conventional financial services suppliers who can be classified as banks, guarantors and resource chiefs. It has prompted a deliberate exertion in the interest of strategy producers to comprehend these new working models and rethink the current administrative structure considering fintech. The basic is to find harmony among innovation and financial stability.
Fintech is a burgeoning industry with unlimited ways of enhancing our financial system and framework. Some fintech patterns revealing the trends are the ascent of Robo-counselors in the stock exchange, the utilization of blockchain in anti-money laundering, the execution of elective credit reporting, and the decentralization of worldwide payment systems.
The author, Shams Tabrej, is financial expert and founder at Ezeepay. The views expressed are personal
(Edited by : Anshul)
First Published: Dec 23, 2021 5:04 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Supreme Court says it may consider interim bail for Arvind Kejriwal due to ongoing Lok Sabha polls
May 3, 2024 4:57 PM
10% discount on fare on Mumbai Metro lines 2 and 7A on May 20
May 3, 2024 2:40 PM