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Financial Technology, also known as FinTech, is used extensively to describe net technology that improves and automates the delivery of finest financial services to all the businesses and corporates. FinTech or Financial Technology is used to help companies or corporations manage operations, financial processes, back end processes, and lots more. These all can be done by using specialized software, algorithms, and other elements. These elements are used on computers, laptops, smartphones, and every gadget. In general terms, FinTech is a word combo of Finance and Technology, and it is known as Financial Technology.
The concept has emerged in the 21st Century, and thus, the term was initially used for the back end technology systems of the financial institutions. From that time, the technology focuses on customers and their demand fulfillment. FinTech or Financial Technology now includes various sectors like education, retail banks, investment management, fundraising, and lots more.
Moreover, FinTech also includes the development and usage of cryptocurrencies like bitcoin. In general, Financial Technology can be applied in any innovation or business transaction. It may also include the invention of digital money for bookkeeping and accounting. Since globalization, the internet revolution, and growth in technology have led to an increase in the use of financial technology. Originally, the FinTech term is used to describe computer technology for the back office of financial institutions, banks, investment companies, and lots more. FinTech is described as a variety of financial activities, like money transfer, depositing a cheque with the phones, bypassing bank branch for the application of credit, raising investment money for the startup business and lots more.
As per the financial studies and reports, almost one-third of consumers used multiple FinTech services, and fortunately, these kinds of consumers are ever-increasing day by day. These consumers found out the FinTech services, and solutions do play a vital role in streamlining their daily financial and banking operations.
FinTech solutions have a great future, and hence, it is ever-growing within the financial sector globally. Hence, these solutions are also beneficial for SMEs (Small Medium Enterprises) and also corporates too. So, let us explore several interesting FinTech ideas an entrepreneur can use for the growth of their business and smooth running of the same.
Better Bills
Small and Medium-sized businesses find it a daunting task to manage their bills and other expenses. Maybe they are stuck paying more bills and for expenses. So, they again get stuck in paying extra for incomprehensible items in a bill. So managing and benchmarking the solutions and services play a vital role in a business. With FinTech solutions, a business can manage overall expenses and bills.
Hardware and Software
Digital Banking and FinTech have gone a very long way. Nowadays, most of the transactions and banking solutions are carried out with the internet and digitally with banking hardware such as ATM machine. However, there are still several banking operations carried out by human beings.
Some of the things may sound like fetched lately, but there are several prototypes tested like ATMs, video conferencing, and other solutions can centralize all the financial and investment transactions. Moreover, interaction with a remote virtual assistant can make a positive difference in a business. Likewise, conversational Artificial Intelligence (AI) plays a big and vital role in increasing customers and sales.
Tax preparation
There are several software and applications available in the market that helps a business to prepare for tax and other financial solutions. However, these applications are eligible only to cover moderate scenarios of the business. Moreover, 30% of tax computations are done with the help of software. In the United States of America, there are more than 300K people have a stabilized job in taxation. Likewise, these people and businesses are generating almost $.10 billion in revenue. So, there are several enormous opportunities for small and medium-sized companies to crack and identify the problem of managing complex taxation procedures.
Platform as a Service
One of the latest trends and ideas for the FinTech is that Conventional PaaS platform works well with the FinTech Industry. This is because PaaS platforms perform the work of configuring as well as maintaining applications, thus taking all the tedious work of developers and coding men. Not only to streamline the FinTech solutions of the business, but PaaS platforms also streamline other business like credit risk management, team collaboration, payments processing, client servicing, and lots more. Moreover, the company can get innumerable benefits like Environment Adaptability, Agile Approach, Standardised Middleware, Database Management, and lots more.
Blockchain Movement
Just like Artificial Intelligence (AI), BlockChain Technology is gaining significance all over the world. It is helping every sector to grow faster at a pacing rate. The sectors include telecommunication, finance, marketing, digital media, education, and lots more. Nowadays, companies are focusing on the cryptocurrencies and hence, the potentiality of the blockchain is growing day by day, and there will be a flow of lots of innovation and creativity in this field. Moreover, millennials admire the idea of digital currencies. Likewise, blockchain technology is ideally suitable for FinTech and other SMEs.
Cryptocurrencies
A large number of banks and other financial institutions consider cryptocurrencies as part of their business. Crypto technology helps businesses to transfer money, loan paying offs, facilitating payments, investments, and lots more. It is indeed shaping the future of the FinTech industry.
Digital assistants
Advanced Artificial Intelligence (AI) and virtual assistants have brought the robotics to all the new level. Virtual assistants are slowly replacing humans, and they do almost all the business operations like scheduling meetings, closing financial accounts, cost accounting, marketing, sales, or anything. Moreover, these virtual assistants play a vital role in interacting with customers and smoothen the customer service at large. Further, it increases clients’ loyalty, reduces the process timing, and lots more. Virtual Assistants can be used extensively in financial services to find smarter solutions to unique problems. It also manages complex tasks like funds management, credit scoring, plans a budget, and lots more.
Complete automation
Complete automation is one of the key points when it comes to FinTech industry. It enables intelligent automation, and it is the combo of non-stop innovations in Artificial Intelligence, Financial Business, and Robotics into the business process automation. Automation gives unparalleled benefits to the company, such as higher customer satisfaction, stronger financial position, faster product and solutions delivery, higher returns, and lots more.
Personalized insurance
The modernized customer has a good time in easy using everything at a touchpoint. So, they want a simple and easy insurance operation. Customers and users want to avail all the offers and services they want at the time they need. So, new and latest technologies like IoT (Internet of Things), Artificial Intelligence and lots more allow smart gadgets and devices to collect more information. FinTech solutions help the companies to find and save the information carefully flexibly.
Compliance as a Service
As technology, business and companies are getting advanced day by day. This situation enables an increasing number of rules and regulations. Often the legal compliances and rules are left over as compared to the number of contracts. In all the nations like the United States, Europe, Africa, there are different rules and regulations. In order to verify them all, it is mandatory to have a strong check on every contract, papers, and processes. Moreover, some of the techniques can be applied are Correlation – Identify overlapping regulations, Validation – Identify highly vital processes and identify and rectify mistakes and ultimately comes the feedback part – visibility and views of the users related to the contracts.
Now you are well aware of the FinTech ideas and trends adopted in the year 2019. These trends and rules are going to change the future of the Financial Technology sector. If you are having though of how to adjust the corporate strategy, you can focus on several points like:
- Consider altering the business and corporate working patterns to fulfill the ever-increasing changes of the digital platforms
- Take complete benefit of Machine Learning and Artificial Intelligence as they can help you to cut the costs significantly
- Apply the robotics concept that helps you to manage customer and users requests faster
- Client-oriented processes to streamline business
- Omnichannel services are necessary
- Cybersecurity is utmost important, and it is mandatory to follow the rules and regulations significantly
- Ensure that your legal teams have expertise in fulfilling compliance with today’s customers’ demands and needs.
- It helps businesses and corporates to take a comprehensive and customer-oriented approach to enable customer satisfaction and smooth running of the business.
Blockchain, Artificial Intelligence, Machine Learning, Chat Bots, Cyber Security, Next Generation Banks, Mobile Applications, and lots more can streamline the business operations. Moreover, they can help the financial institutions, banks, and finance companies to become stable at a larger level and also help to satisfy customer’s demands.