3 reasons why Fintech is important | by Raj Shamani | November 2022
Financial technology, better known as fintech, is the use of new technology to improve and automate the delivery and implementation of financial services. As the world goes digital, fintech has proven its usefulness in all sectors. From local businesses to giant corporations, it offers seamless transactions and accessibility for everyone, everywhere.
On my podcast Figuring Out, I had a wonderful conversation with Akash Sinha, CEO and co-founder of Cashfree Payments, India’s leading payments and API banking company. He has worked with a fintech company before, so we discussed the topic a lot. This got me thinking about how fintech has become crucial in our journey towards an advanced future. So keep reading to find out 3 reasons why I think fintech is important.
Compared to traditional financial institutions, fintech is a much cheaper alternative to banking. Fintech organizations do not need to pay rent for different branches or hire advertising, account registration or managers. They can operate at relatively low fixed costs, which also benefits the customers.
Being cost-effective allows the fintech companies to offer excellent deals and offers to their customers that traditional institutions simply cannot. Most fintech firms allow you to open and operate your account at no cost and charge no additional fees on basic transactions. It offers a flexible, transparent and unified solution so that people can take advantage of all the benefits.
A smartphone with an active internet connection is the only necessity to use fintech services, which makes it much more accessible. It has revolutionized the financial sector globally by addressing people who lack access to traditional banking services.
With the development of e-wallets, financial services have become more inclusive. Apart from helping individuals, fintech is even helping governments by providing regular services to regions without such facilities. Most fintech platforms offer a variety of services in a user-friendly interface, making it easy for anyone to use.
There seems to be a bit of polarization around people’s opinions about the safety and security of fintech. Despite its few vulnerabilities, it is much more secure than conventional financial institutions. Traditional firms can often be more vulnerable to digital attacks due to the lack of up-to-date IT infrastructure.
At the heart of fintech is technology, which allows it to adopt the latest technology and cyber security measures quickly. It features biometric verification and offers instant alerts, location-based security and more such measures to ensure your hard-earned money is safe.
Fintech has become a dominant force in our economy and financial sector because of these undeniable benefits. Whether you manage your personal finances or want to future-proof your company, it is unthinkable without fintech.
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