FinTech: The Next Big Thing in Business Finance

  • November 15, 2019
  • By Sarah Solomon

The Financial Industry is always developing, but is the next big thing here?  Most recently, the financial focus has shifted to the internet. We see the development every day through ATMs, mobile banking, and the ability to conduct online money transfers.  However, the Financial Industry isn’t done yet; in fact, financial service companies are embracing the 21st century and the technology that comes with it. There’s more to come as a new giant is being introduced: Fintech. 

Fintech is a combination of Finance and Technology.  The word itself speaks for its meaning. Financial institutions are seeking and utilizing technology to make financial services more efficient. Most importantly, Fintech seeks to adapt to consumer’s needs. So Fintech is the ultimate solution. Although heavily reliant on software systems, Fintech is a major threat to current financial institutions with traditional systems.

Fintech Innovations

  1.     Electronic Payments
  2.     Cryptocurrency
  3.     Telematics
  4.     Reg-tech

Electronic Payments

Many consumers find over the counter payments tedious and time-consuming.  Fintech creators are aware of this and implemented a solution. The introduction of electronic payments is believed to make payments more efficient.  Through mobile payment applications, bill payments and transactions should become seamless.

Cryptocurrency

In fact in traditional banking, money solely flows through the banks. But the creation of cryptocurrencies, Fintech is able to create a digital currency that encrypts information for protection.  In other words, Fintech is developing “electronic cash.” This enables to accept and transfer online payments without having to physically pass through a bank.

Telematics

Applying for insurance policies is rather time-consuming. This is because Insurance companies require analysis and evaluation of the consumer. Thus, Fintech plans to make this process easier by introducing new high tech devices. Through these different devices, insurance premiums will be able to be determined. For example, Fintech has created a technical device specifically for deriving car insurance. The device tracks how a person drives, giving analysts all the data they need in one instance. Therefore, rather than spending hours or weeks analyzing data, this device makes everything simpler. 

Reg-tech

Financial Institutions are reliant on security, attainment, and emphasize strict protection of consumers. Fintech is no different.  Through Reg-tech, Fintech provides strict regulatory requirements and technology requirements all institutions need to comply to. Therefore, Security and protection will not be compromised through the use of Fintech.

 REIL Talk  

The financial industry is developing each and every day.  As Fintech takes over, the financial industry is sure to perfect every asset of the system and technology.  So it will be a part of the development. Interact financially with your bank through Fintech. It would be smart to become an expert on the next big thing.  For the financial industry, Fintech is definitely the next big thing. Contact REIL for any questions on Fintech, financial advice, or to fulfill your business’s funding needs! 

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