For planning a startup venture, there are three factors which constitute the working of your business; concept, operation, and finance. In today’s smart world, these three factors and the success of your business needs a strong basic framework to progress. This is innovation in the field of science and technology. When technology innovates the financial aspect of your startup or any other institution, it becomes functional as Fintech or Financial Technology.
Properly defining, Fintech is the inclusion of technology as a back-end support to financial services for ventures in any sector and thereby leading to innovation in rendering products and services to the customers. Best common examples of sectors where Fintech is the spearhead of operations include retail banking, education in finance and economy, digital currencies, investment, money management, and marketing.
How banking is revolutionized by Fintech
The era is gone when customers have to impatiently wait till the bank clerk searches entries and make entries in the heavy transaction ledgers. We no longer become frenzy in checking our passbook entries for that one doubtful transaction, but refer our mobile messages instead. The possibility of human errors was also more, with the customers having to be extra conscious to avoid loss of their money. Banks are smart now and technology is driving it in every aspect, from transactions, marketing to record-keeping. Fin-tech has made banking a day-to-day activity in our lives.
We transfer money on the go using mobile banking, get our balance and account statements on the mobile with just a miscall and register ourselves for any application with a click. All these are possible by the entry of Fintech as a money management tool in banking. Desktop and laptops have replaced ledgers, mouse and keypads have replaced pens, machines have replaced counters and mobiles have replaced branches.
Where once human conscience, direct customer feedback, and product sales helped banks to improve their services and sales, automatic systems are doing the same for them now. You enter into your online banking site and carry out any transaction, send requests online and shop in whichever store you want. Every minute detail reaches the bank and gets documented.
Modern money management tools incorporate the smartness of technologies like:
- Remote sensing
- Artificial intelligence
- Automatic market watching and analysis
- Data-driven marketing strategies
- Predictive functioning using customer behavior
Now, humans do not learn to improve their functioning, instead, apps learn and study their customers and humans use them for creating better machines for better banking services.