Financial technology (also referred to as FinTech) is the use of innovative technology to provide a wide range of financial products and services. Its purpose is to facilitate the experience of convenient, fast and multi-channel payment to the consumer. This type of technology is effective in many different business sectors, such as mobile phone payments, investment management, money transfer, fundraising and lending.
The rapid growth of financial technology has been extremely beneficial to consumers around the world, such as the ability to serve unprecedented customers, reduce costs, and increase competition.
Let's take a look at some of the benefits related to financial technology:
Better payment systems – this type of technology can make businesses more accurate and efficient in invoicing and collecting payments. Also, the more professional service will help to improve the customer relationship which increases the possibility of them returning as a repeat buyer.
Approval Rate – Many small businesses have started using alternative lenders such as those who participate in financial technology because they have the potential to increase accessibility and accelerate the approval rate for financing. In many cases, the application process and the time to receive the capital can be completed within a 24-hour period.
Greater comfort – Financial technology companies take advantage of fully mobile connectivity. This can lead to a significant increase in the number of people who can access this type of service as well as increase the efficiency and convenience of transactions. While giving consumers the option to use smartphones and tablets to manage their finances, businesses can simplify their services and provide a better customer experience.
Powerful Advice – Many of the latest systems rely on robo advice to give people guidance about their finances. This can be a quick and low-cost option to obtain useful information about investments, as well as to reduce a person's exposure to risk. However, this type of service will not be able to provide the most profound advice that might come from a professional advisor.
Advanced Security – Using the latest security techniques is essential to ensure more people are confident in using this type of financial service. The need to take advantage of the latest mobile phone technologies has made a significant investment in security to ensure that customer data is kept safe. Some of the recent security options that those in this sector use include biometric data, token, and encryption.