Among the biggest leaps of the 21st century is the widespread use of financial technology. While not exactly new, its presence in the mainstream is relatively recent, but its effect is something that can’t be denied. Only a few years ago, doing banking matters meant needing to physically go to a bank and process your papers, and then wait for five to ten business days for it to finishing processing.
Nowadays, a bank to bank transfer can happen in mere seconds, making something inconvenient the easiest it’s ever been.
This is, of course, all thanks to the developments in the financial technology industry. If you are not familiar with the term, financial technology (or fintech) is basically a field in technology that focuses on improving and automating systems used by financial companies. Originally used by companies to make financial transactions faster, it is now being used by people all over the globe. Online transactions such as paying bills, purchasing something at an online shop, or even transferring funds- are all within the domain of financial technology.
More Widespread Than You Initially Thought
While the common uses for financial technology are pretty obvious (i.e. personal banking), its more specific purposes also allow for interesting uses. Most banks now utilize a banking app that allows you to access your account through your smartphone, providing you with complete control over your banking matters. There are features such as fund transfers, creating a savings account, adding users, requesting physical cards, or even currency exchange services. And as more business implement cashless payments, more and more of these banking apps will also allow you to pay through your phone, even if you’re in a brick and mortar shop.
Another interesting aspect of financial technology is how it can connect you to more conveniences than you ever imagined. Most financial companies partner with other financial companies or service providers to create a seamless user experience. Online shopping websites create links with banks, making payments safer and more seamless. Even uncommon services such as a hydraulic hose or electrical repair now offer online booking and payment options, creating a truly cashless and almost contact-less service experience.
The Future of Fintech
Of course, technology is something that constantly evolves, and over time we can expect to see more innovations and developments in the financial industry field. But what can we expect in the future? Here are a few humble predictions regarding the future of financial technology.
– More user base.
Every year, more people are using fintech services, and this trend will probably continue until the next few years. This is something that most of us can see coming, as smartphones are becoming cheaper and cheaper, making them accessible for people of all walks of life. Not to mention the many corporations advocating for online transactions, creating online discounts and sales every month or so.
– Increased security and privacy.
Safety has always been a concern when it comes to financial transactions, especially online, where information theft is common. The fintech industry is also working on increasing the security and privacy of their services, so it is safe to say that we can expect better security and stricter security implementations in the future.
– Diverse and easy investment options.
Small-scale investments have always been possible but not convenient- however, this changed with the innovations in fintech. We can now trade stocks and currency on the go (provided you’re on schedule), and we can expect that this experience will be made even easier in the future.
– Better user experience.
When banking apps started, they were reminiscent of early 2000’s HTML webpages that loaded slowly and had a propensity to crash. But as more and more focus is put on making the user experience better, we can expect that banking apps of the future to be more fluid and easier to use.