What is Fintech and How It Changes Financial System?

What is Fintech and How It Changes Financial System?

Fintech is a hot startup topic right now. Fintech is not just another buzz on startup world but it is a technology niche that offer really high oppportunities.

We have seen how the internet encouraged innovation in various industries, such as retail (B2B and B2C), entertainment (TV and movie), education (online course), media (news and magazine) and other industries which strongly affect our lifestyle.

And it is now the turn of financial industry to grow up.

The fact is, we have seen financial system being re-innovated as an online system in the recent years. Take Paypal as an example or bitcoin as another. However, the buzz doesn’t really that loud until recent years.

So, what is fintech?

Fintech is the short form of Financial Technology. It is a way to make financial system much simpler by using advance and ‘creative’ technology.

The reason I added ‘creative’ technology is because technology is not just about high-end technical stuffs, complex system and hard-core programming, but also needs creative approach on how the technology create a system fits user behaviour and make our life better.

Why Fintech is hot?

Banks and other conventional financial institutions has grown to a phase where there are not much revolution in the banking system anymore. One problem that is commonly known is they are slow to accommodate rising demands. Others are high interest and complexity on getting good deals.

I am absolutely not being judgemental that they don’t have capabilities in pushing the system beyond limit, but the fact is there.

Some financial institutions have realized this and now building better financial technology to accommodate market needs.

Aside from that, this problems have created opportunities for savvy entrepreneurs to play on their creativity in changing the financial system by acquiring available technology.

The raise of internet and mobile technologies have also smoothen the path to achieve the solutions.

What can Fintech do to ease our personal and business life?

Imagine you can do any financial transaction conveniently and securely with mobile devices, such as:

  • Pay something without taking out your wallet or cards, but by scanning your smartphones.
  • Receive payment from your customers by swiping their cards through smartphones.
  • Removing the hassles of comparing their products by visiting each banks or their websites before submitting.

What are some of Fintech ideas?

  • Doing financial transaction online, such as making and receiving payment internationally.
  • Personal financial system
  • Business financial support
  • Financial data analysis for decision making
  • Lending system
  • Crowdfunding
  • Bitcoin and blockchain

And with the best use of creativity, it’s a long list to go.

Why Fintech is so attractive these days?

  • As mentioned before, our existing financial system needs better approach to fits the market.
  • And as such reasons, there are revolutionary ideas in financial technology innovated by startup entrepreneurs.
  • Markets have high tendency to use advanced financial technology. It ease their life and improve lifestyle.
  • Funding is mature. This includes personal investors and venture capitalists. They are getting their foot wet in financial industry. They deeply understand that our global financial system needs revolution.
  • Big opportunity in revenue when the developed fintech startup is successful.

So, that’s it, I hope this posts can give you a good introduction and nice insights about Fintech.

If you are really interested in Fintech or much better, you are keen in building a Fintech startup, please search for more data and evaluation about this technology.

And lastly, I hope you enjoy this post. Please share if you find it useful.

Wahidin Wong is a freelance creative designer, content writer and digital marketer. He is also a jazz and bossa lover.
 
 
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