Financial technology, also known as FinTech, is the application of advanced technology to provide a whole range of financial products and services. Its purpose is to offer a payment experience that is more efficient, convenient and versatile for the consumer. This variant of technology works in various business segments, such as lending, mobile payments, and money transfers.
The unstoppable popularity of financial technology has been extremely favorable to consumers all over the world in unprecedented ways – for example, in reducing costs and serving customers previously not attended to.
The following are some of the more specific ways that financial technology benefits consumers:
Improved Payment Systems
Financial technology allows a business to increase its accuracy and efficiency when it comes to invoicing and payment collections. Additionally, this professionalized service allows the company to improve its relationship with its customers, making it more likely that they will come back for repeat business.
Higher Rate of Approval
A lot of small business ventures are beginning to turn to alternative lenders, such as those involved that employ financial technology, because they are generally more accessible and have higher rates of loan or financing approval. Typically, the time it takes to apply and even to receive the cash for an approved application is no more than 24 hours.
Businesses that employ financial technology can make use of all the benefits that come with mobile connectivity. This can substantially boost the number of customers who are able to leverage the service, on top of making transactions quicker, easier and more convenient. When consumers can manage their finances using their smartphones, tablets or laptops, business can fine-tune their services and create better customer experience.
A lot of the most cutting-edge systems depend on robo-advice that helps people improve their financial management practices. This could be a speedy and low-priced option for sourcing handy investment data and also to minimize a person’s risks. But as expected, this service can never match the value of any advice provided by a real live human expert.
Applying the latest security approach is a must to make sure that people are truly confident in financial technology and all its benefits. With people relying more and more on mobile technologies these days, large security investments have been made, if only to guarantee safety for consumers’ data. Some of the more recent security options popularly used in this sector are biometric data, encryption and tokens.
Financial technology has undoubtedly found its its way into people’s electronic wallets and portfolios. Considering the entire variety of mobile banking services, along with budgeting and investing apps that are popular nowadays, you probably have at least one financial tool on hand at the moment. And the reason is probably not surprising.