For starters, let us get to know what Fintech actually is. Fintech stands for Financial Technology and can refer to any technology that an organization or a company uses to automate its financial services and processes. Fintech is a relatively new and often nebulous term that many people fail to understand. However, it will be a major driving force in the coming years due to advancements made in Artificial intelligence and the various upcoming technologies that are taking a platform in the global world. Everything that we are able to do in the modern world from checking our transactions at online shopping sites to making quick payments using apps like Paytm, they are all part of the evolution of Financial Technologies or in simple words Fintech. One major advantage that Fintech offers is that it no longer depends on which institution’s resources are bigger, but it now depends on who can come up with the fastest and innovative digital services and technologies that can address the ever-growing consumer demand. Companies and startups have started to respond to third party demands and are trying to come up with mobile transactions platforms, cloud computing, blockchain technology in order to produce something that reduces transaction time for customers and making sure that cash and balance are maintained properly.
The use of technologies like Cloud Computing that many institutions are now adopting to deliver financial services is highly beneficial. This is because, firstly, data collection and aggregation is one of the core principles on which it is programmed, and secondly, one of the most important issues is the growing cyberattacks on various IT firms. Cloud computing has a high resilience against attacks and has a defined security architecture to which traditional methods of services are particularly vulnerable. Clients make numerous demands to banks hence what the current scenario among Fintech organizations is that developing a chatbot, messenger, or some kind of technology that can communicate effectively to customers and the communication channels so developed might also be helpful in promoting new products. However when looking at the other side that Fintech brings the use of cryptocurrencies in digital transactions can affect payment systems and price volatilities moreover the growing regulatory compliances that companies have to follow will slow down the emergence of Fintech hence it can be safe to assume that a complete shift will take time.
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