Fintech is a simple abbreviation for Financial Technology that boomed up in the 21st century. This can also be described as the emerging technology in the financial services sector across the globe in this century. In the earlier days, the technology was applicable only to the back-end of the trade financial institutions and establishing consumer. In the later years of the 21st century, this term has expanded to include all the technological innovation in the financial sector which also includes innovations in the economic literacy, education, retail banking, investment and even crypto-currencies like bitcoins.
There are four broad categories of that use the fintech
- B2B for banks
- Their business clients
- B2C for small businesses
The trend towards the mobile banking and mobile trading would provide increased information, data also the usage of this technology would give more accurate analytics. This term financial technology is now being applied to almost all the innovations in the way people transact business. The term financial technology is now being widely used for the invention of money to double-entry bookkeeping since the internet revolution and mobile revolution. This explosive growth of the financial technology was originally referred to the computer technology applied to the back offices of the banks or the trading firms. Now that this technology has reached every inch of the society a broad variety of technological interventions into personal and commercial finance is now described.
Although the technological innovation in Information Technology landed in the 20th century, the trading and banking innovations have started to emerge soon after the end of the technological innovation. There are many applications now being developed on the mobile platform, and one such application provides the trading option for no fees. Also, peer to peer lending sites and Lending clubs are now being designed with a promise to reduce rates by opening up competition for loans to broaden the market forces. There is no such wonder that by 2020, all the tradition computer technology would be replaced by the mobile technology also there would surely be a tremendous growth in the mobile banking, mobile transfer, mobile trading over commodities and exchanges, digital wallets. Also, there would be financial advisory and robo-advisor sites and all-in-one money management tools. Mint and Level are some of the examples.
In the past, individuals and organizations used the unseen hand of the market – showed by the signalling operate of price – for making economical choices. New technological innovation, like machine studying, predictive behaviour statistics, and data-driven marketing, will take the think work and hocus-pocus out of economic choices. “Learning” applications will not only learn the routines of customers, often unseen to themselves, but will interact with customers in mastering games for making their automated, subconscious investing and saving choices better. On the back end, enhanced information statistics will help institutional customers further improve their investment choices and open new possibilities for economic advancement.
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