What is Fintech? There was a time when we need to walk up to a bank and perform various transactions and if you have any problem regarding your finances, you had to come to visit only on business working days. Now things have changed, we are now in a modern world and lots of things have being innovated that we get to ask ourselves ‘what is Fintech?’
Fintech can be defined as the utilization of technology to revolutionize financial services. This has to be a great change in our world and almost everyone welcomes it. Although, some have characterized them to be a threat as they tend to impose a great challenge on the local banking way of running transactions. Most people see it as a blessing and as well a great turnaround from the traditional method.
What is Fintech | Benefits of Fintech companies?
Fintech is just an abbreviation for the word ‘Financial Technology’ but it is more than a word. This word you see here has created a lot of changes in the financial system making life so easy. What is sweeter than just having to sit comfortably at home transferring cash, lending loans, paying for bills, and performing other transactions through your smartphone. Thanks to fintech companies who have put in their effort.
Being a great innovation in the financial system, the fintech companies also present themselves with amazing benefits that tend to attract more and more customers to the platform. Apart from it making the transaction so easy and fast, There are many other things that meet the eyes. So also, There are many fintech companies out there such as PayPal, Paystack, MercadoLibre, Interswitch, and many others.
Why wouldn’t everyone get on these platforms? Because no matter where you are, the language you speak, laws guiding your country, the fintech companies are always there to make amendments. Due to different cultures, laws, languages, fintech has to be able to bring them together; for example, you have an online platform or website integrated with multiple languages.
Fintech companies have put into consideration demographic and social needs. People who have faced a lot of setbacks in the traditional method have declined drastically and moved on to the modernized way. Most developing countries had found great use of these services after being disappointed by traditional banks causing a lot of social change.
Security and Protection
This one key thing the fintech companies have always placed in the spotlight. In fact, in every organization, there needs to be tight security and protection as these tend to build a lot of trust along with customers. Due to the advent of cybersecurity, the level of security has so much elevated as lots of scams are easily and quickly detected.
One major thing that has given fintech a great advantage is the speed. The rate at which transfer is being made despite the distance can be so fascinating. You can send a currency to another account operating on a different currency and it will automatically transform to that currency so fast. This can be seen in a lot of trading platforms.