Fintech for future services
Mr.S.Saravanan, Professor ,SIMS.
When we use debt card for online purchase or when use Paytm for recharging our mobile phone, or when we make money transfer using digital wallet or when global banks do currency transfer – everyone are using fin tech.
What is Fintech?
Fintech is application of technology in delivering customer service with reduced cost and time.
There are four major areas Fintech has changed the traditional business
- Fintech in Payment
- Fintech in Debt Market
- Fintech in Investment
- Fintech in Business to Business
- Fintech in Payment:
PayPal was the first company to make payment solution simple for online shopping. Today Fintech startup companies are pushing payment to next level. Startups in tech fields have reduced the cost of moving money across the globe with close to zero percentage with ease and fast. The middlemen (Banks) monopoly in transfer of money has gone because of the digital wallets, Whatsapp money, PayTM etc.
- Fintech in Debt Market:
In 2008 financial crisis started because of non availability of information in credit and the customer. Now new Fintech companies have used peer to peer technology platform where customer and lender meet with open information for better debt markets.
- Fintech in Investment:
Investment has been the prime factors for any financial companies. The companies who control the investment instruments had huge control over the markets. This investment instruments were traditional in nature and had very little scope for growth, but with the invention of crypto currency like Bitcoin, Ethereum, Litecoin had changed the way individual investment and return are made in coin exchanges. (Digital currency investment are not encouraged by RBI in India)
- Fintech in Business to Business:
B2B financial companies were mainly focusing on upgrading the backend information technology infrastructure for better maintaining existing business. But the focus has changed to front end digital technology enabled customer services. The new technology like big data, machine learning has transformed the businesses.
Fintech has wider scope for future financial services companies and customers for better delivery with reduced cost and time.
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