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The world and the ways of doing things have been changed tremendously in recent years thanks to the rapid development of the technology itself. Since digital devices have become quite common among individuals, many technologies revolving around these devices have become a center of attention among many tech companies.
One area that has been influenced significantly by digital technology over the past few years is the finance industry. To be specific, digital transactions, e-wallet service,and cryptocurrencies are among the several technologies that have swept away most of the conventional methods of financing. In fact, the modern world has entitled all the technologies within the financial industry that are responsible for bringing the revolution as ‘Fintech’ or ‘financial technologies’.
Talking about the fintech, there are various companies and organizations that are working on it and amid such companies is the London-based Fintech Company led by Matthew Ledvina. He is a managing director of the company and it’s his vision to bring further developments in the field of finance. In addition, he always keeps himself updated with the fintech related happenings occurring throughout the globe.
What is Fintech?
In many parts of the world, the fintech has become a part of the lives of many people but only a few know what fintech is all about. But it shouldn’t be that surprising at all because it’s not a long time since the term has been introduced.Nonetheless, according to the experts, “fintech or financial technologies is a set of innovative methods that individuals can use to perform various financial activities such as making payments, shopping for loans, etc. In addition, the fintech mostly focuses on devices that can process digital data such as computers, smartphones etc.The financial institutions and companies nowadays are focusing to bring new innovations to attract more customers.
Benefits that Fintech Has to Offer
According to the experts, fintech offers benefits to both the customers and the service providers. The use of fintech allowed companies to offer better financial services to customers at reduced costs. Moreover, it has become easy for customers to access the services while on-the-go and the need to visit the physical location of a financial institution has been reduced significantly. In earlier times, customers have to make a visit to banks to meet their banking needs such as depositing money, making withdrawals etc. But with fintech such as mobile banking, an individual can perform banking tasks literally anywhere with the use of a Smartphone or a computer.
Many companies such as the Amazon offer customers the service of e-wallet and other financial services that have facilitated the way they manage their money. Furthermore, there are various financial services that have allowed people living in areas with less or no banksto access numerous banking services. As a result, fintech is helping to lower down the proportion of unregulated financial activities within the economy of a nation.
Potential Risks
When talking about technology, one will hardly decline the fact that it is like a coin having two different sides. Pertaining to financial technologies, the same is completely true as there are some risks that come alongside. To start with, the lack of transparency among certain services is an issue as there may be anun certainty of the costs or fees that customers have to pay in exchange for using the service.
The second foremost risk corresponds to the security of digital data. There are cases when the security of a company’s digital data has been breached and resulted in the theft of customer data like bank details etc. Moreover, as the financial deals or interactions occur on a mobile phone or computer, there is a lack of a paper record that can be used as proof. Subsequently, it may become hard for the customer to prove in case a discrepancy arises.
It is almost impossible to overlook the positive changes that fintech has brought to the finance industry and thus made the lives of people easier. However, it is important to watch for the potential risks that it comes with. Thus, it is the responsibility of the fintech companies to bring innovations that are secure and are more reliable.
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