Public Access - How FinTech Has Changed the World of Finance

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The progressive amalgamation of finance and technology – dubbed FinTech – has definitely proven to be a model capable of introducing entirely new levels of change and evolution in the world of finance and economics.

While a number of conventional channels of finance struggle to keep up with the rapidly-flourishing sphere of financial technology, many older banks, insurers, and financial advisors find themselves abandoning traditional models of practice. These conventional banks and financial institutions instead opt to take steps to connect with several FinTech platforms and get their share of the cake; combining two separate mechanisms with a penchant for receiving high levels of financial credibility and success can only lead to more progressive development in the world FinTech has changed, and continues to change.

  1. Launching products with increased focus

FinTech platforms successfully manage to convert the world of financial investment and banking into something every consumer can conveniently reach and access. This is achieved by introducing products and services which cater to a wider demographic, with specific products extended and marketed to specific consumers. This allows a wider circle of consumers who can be reached and offered the financial advice and support that was previously only available to a small percentage of clients. This removes the label of exclusivity attached to many conventional financial outlets, where only the wealthy and experienced, with plentiful assets and resources, were eligible to receive financial advice or asset allocation.

The company Transferwise, as an example, markets how consumers can verify their transfers on the go, or make new ones by accessing their personal accounts by a few taps. This makes any individual with a smart-phone and a bank account eligible to send and receive transfers through something as convenient and quick as an application. Given that the very same application combines an entire network of banks and accounts globally, international transfers and remittances have become exceptionally simpler to access and manage.



Conventional banks have also used social media as a leveraging platform to introduce mobile banking to millions of people.

With the deployment of such FinTech establishments as NerdWallet, the world of financial advisory is no longer limited to wealthier clients possessing a minimum of $100,000 in terms of investable estate or holdings. Now any individual, regardless of their financial standing or employment status, is capable of receiving counseling and advice on everything from banking and investing, to taking out loans and mortgages. The world of FinTech now encourages consumers of all ages and walks of life to make more informed financial decisions.

  1. Investments and insurance

Deciding who qualifies for receiving loans or health insurance has always been something that has required exhaustive profiling and research into a client. Smarter use of data through technology could carry out this profiling more efficiently and probingly.

Typically, financial and health documents require a number of processes to be carried out before they can be collected. With the use of the endless data technology and the Internet are capable of jointly providing, this profiling becomes much easier to do; any individual's social media accounts can be tracked and studied. Not only does this determine social and health-related habits more closely, but an individual's online shopping patterns, or the reception any start-up company seems to receive online, can both be good leads for insurers or investors to make decisions on whom to fund.

The matter of investment also becomes simpler quite significantly with initiatives like CrowdFund or GoFundMe, allowing people to fully assess and then determine which start-up is worth investing in.

  1. Collaborations to extend reach

The dynamics of FinTech would not be possible without the collaboration of both conventional and new financial services. These partnerships have allowed the vast scale and resources of conventional banks, with the reach and accessibility of tech-based companies.

A prime example would be that of ApplePay, and how it allows users to use their payment network of choice to make online transactions. This fits all of the options that a user may need into one neat area.

These linkages are a testament to the fact that both the world of finance, and the world of technology, realize that disruptive competition is not nearly as beneficial and advantageous as collaborative ventures.

These collaborations have extended their reach to pensioners as well. Employee's Provident Fund balances can be accessed and tracked online as well, and EPF balance enquiries have made provident fund tracking a simple, reliable process.

  1. The future of online shopping

The possibility of FinTech establishing an internationally-acknowledged global currency is still a few ways away. Until then, a number of banks and payment networks have extended their services online, so that customers can feel at ease when making purchases via a trusted channel.

Until a global currency becomes a solid norm, customers can rely on these outlets for the sake of their financial safety.

FinTech companies have also made online retail shopping and transactions tremendously simpler; this only encourages both younger and older retailers to extend their scope online.

  1. Compliance assistance and online safety

The threat of identity fraud and credit card theft are ever on the rise, with FinTech companies focusing on making all online transactions, transfers, loans, and advisory as fraud-free and safe as possible.

These companies are in a stage of constant development and improvement to ensure that not only do establishments comply with the standards set by corporate governance, but also ensure the safety of those operating online, so that FinTech initiatives are always a few steps ahead of fraudsters and thieves.

This only encourages further expansion and growth of an industry already rapidly thriving, which could bode well for the future of FinTech and its consistent success.

The future of FinTech looks to be a dynamic one – as it has opened an entirely new and competitive sphere of finance and banking, companies and banks will find themselves consistently evolving and developing to keep up with the rapid changes in the sector. These changes can only mean good for the countless consumers, who will benefit from the ease and accessibility of a world they never thought they'd actively participate in.

So whether someone is a student looking for informed budgeting advice; or a shopper at home looking for easier and safer transactions; or even the CEO of a series of global banks investing in change – the future for FinTech looks to be promisingly solid.

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