In recent years, nearly every industry has been directly or indirectly impacted by the rise of fintech. Not only has fintech changed the way that companies function with finances, but it has also helped to streamline a variety of financial services. Understanding the impact that fintech has had on the financial industry helps understand how it will continue to shift the workplace in the future.
What Is Fintech?
In its most basic terms, fintech refers to the different forms of financial technology. It encompasses the different types of technology that helps to streamline or digitize financial services and can help make each process more efficient. Some of the most common examples of fintech could include cell phone finance apps, online banking services, and online billing services. With financial services becoming more efficient than ever before, several areas in the financial services industry have been impacted.
Streamlined Processes
The most significant impact that fintech has had on the financial industry is the ability to streamline a number of processes. More services are available online that a customer can easily access through online accounts than ever before. This reduces the need for customers to either visit a branch or call the bank directly. Additionally, capabilities like online payment systems have made it easier for customers to not only make necessary payments but also helps make it easier for financial companies to collect overdue fees.
Increased Financial Capabilities
Another major advantage of fintech is the increased financial capabilities that would not have been possible previously. One great example of the increased financial capabilities is investment apps that can be downloaded directly to a cell phone. These apps have helped make it easier for anyone to make investment decisions and manage an investment portfolio from their cell phone. Because of excellent fintech services like investment apps, people have the power to take control of their finances in a way that may not have been previously possible.
Keep Customers Up-To-Date On Important Information
While this may not have as large of an impact on financial industries as other factors, fintech has also helped make it easier to keep customers up-to-date on important information. This has been made possible by things like online newsletters subscriptions, social media efforts, and email updates.
Without the rise of fintech, the financial industry would not be able to function as efficiently as it does today.