Financial technology is the latest innovation and technology which aims to combat conventional financial practices in the provision of financial instruments. This is an emerging field which makes use of modern technology to boost financial activities in finance. The key features of financial technology include improved management of resources, enhanced information management and the use of information science for financial purposes. This is a branch of finance which has seen tremendous innovations in recent times. As a result, this field has become an important component of the overall financial market.
A company providing financial services must adopt some essential technologies to be able to survive in the highly competitive industry. The first step to make financial services more efficient is to improve information management, thereby making decisions pertaining to strategic issues easier to implement. Efficiency improvements can come in the form of data capture, information management, information planning and decision support system, as well as automated decision support systems.
Another important aspect of fintech is related to its payment systems and online processing. One must take note that the internet has provided better options for payments and interaction through online banking. Therefore, online banking is another key aspect of financial technology. Apart from the traditional bank branches and credit unions, internet has also provided a platform for other types of fintech companies.
Another aspect of fintech which is gaining popularity is Forex trading. This sector is growing exponentially and therefore many people are making investment decisions in this sector. As a result, investment opportunities are being created and startups are emerging to provide better financial services to individuals and corporate clients. The following are a few examples of Fintech startups:
Many fintech companies offer personalized services to individuals. One popular example is Kabbage, a provider of personalized customer service solutions to small businesses. According to Kabbage, personalized service includes customer management, telemarketing, appointment setting, appointment reminders, order placing, and analytics and reporting. Kabbage uses predictive analytics and data visualization technologies to analyze customer data and provide personalized services.
There are several more fintech companies providing different kinds of financial services, including online stock trading, money transfers, forex, cell phone industry, travel industry, etc. The trend of fintech is expected to increase in the next five years. As a result, the number of startup companies will increase. The key drivers of this trend include lower business costs and increased profitability, and an increase in online transaction. This trend will eventually lead to more jobs in this field, and will eventually transform fintech into a major force in financial services.