Fintech is the combination of finance and technology. It has become increasingly evolved and integrated during the past couple of years, and when Covid19 hit, the concept became a widespread need. Stay-at-home orders and bans on large public gatherings have made it so that contact needed to be extremely limited, but all the functions of the world are required to continue. Fintech became very beneficial for different aspects such as banking and investments. Some of the most popular fintech inventions include cashless payments, robo advisors, crowdfunding platforms, and virtual currencies. Below we will look at some of the different ways fintech is changing the financial world, as featured in an article on Digital Goal.
Previously it had been sort of a struggle for everyone to have equal access to traditional and old banking systems. According to the article listed above, it is believed that over 2 billion people around the world still do not have bank accounts. Fintech can make all of this much more accessible. You can now use your laptop wherever you are to buy an insurance service or even take out a loan. Online banking systems are also a huge benefit as you can transfer money, take out loans and pay bills directly from your mobile phone.
As consumers, we were once living in a world where corporations controlled pricing, and consumers just had to accept whatever surprise they were blindly presented with. Fintech is making it, so that pricing systems are more precise and upfront so that consumers are always aware of all costs and are not hit with hidden fees. There are many options to choose from, such as pay-as-you-go pricing models and other platforms that help consumers save money.
Fintech Companies and Startups
Fintech initially grabbed start-ups’ attention, but now they are making waves with mega-companies such as Alibaba and Apple. There are many fintech products that these big companies have started to integrate into their businesses, such as Alipay and Apple Pay. Billions of dollars have been invested into fintech globally over the past few years, and their investment has spiked as well.