Technology advancement in financial services
The financial services industry is definitely ripe for some innovation. While there have been some advances like ATMs in the 60s, debit cards in the 70s, and online banking in the 90s, financials services has yet to experience a fundamental transformation. In today’s increasingly digital word, although financial services is one the largest markets of the economy, it remains mostly offline.
FinTech refers to the innovative technologies making financial services more efficient, personal, and secure. Here are some aspects of what is pushing FinTech forward:
Mobile Technology
Not only does it connect our world and provide easy payments on the go, it has the power to provide 3 billion people without a bank, access to financial services. This helps to overcome poverty, reduce income disparity and increase economic growth.
Big Data
The rise of mobile devices has lead to a massive increase in data. This allows companies to better understand and assess customer needs, and offer completely new and personalized services.
Machine Learning
Machine Learning algorithms allow companies to transform big data, this raw information, into instant risk assessments, decisions, and product customizations.
Blockchain
Just like the internet distributed information and made it widely accessible, blockchain technology is doing the same for value. It manages and secures trade, ownership, and trust while eliminating the middlemen.
How will FinTech affect your life? Say you want to start a business, you can now obtain a business loan without getting out of bed. Through blockchain technology, your business idea can be managed using smart contracts. Making agreements, distributions, partnerships, and production processes easier, more reliable, and secure.
Once your business is up and running a simple scan or your face or fingerprint will authenticate mobile payments in your store and from customers around the globe. After each purchase, the data received will be analyzed to help grow your business further.
When out with friends, splitting the bill becomes very easy and fun. After a long day, you can effortlessly check your investment portfolio and retirement accounts, ensuring that you meet your financial goals.
The financial transformation is here. FinTech empowers people to make better financial decisions and fosters economic growth.