Financial technology, or FinTech, is the integration of technology to automate financial services such as mobile banking, investing, and loan services. It saves time and manual labor which is why many large corporations and businesses have implemented these services.
FinTech makes banking more convenient. Instead of waiting in long lines at financial institutions, financial transactions can take place anywhere, at any time. This includes real-time investments, and stock market trading.
Fintech also stimulated the creation and rise in popularity of cryptocurrencies such as Bitcoin. The digital lending process has seen a rise in usage as well. This has proven to be particularly useful for small and medium-sized enterprises, for obtaining capital for their ventures.
The implementation of a lockdown by many governments worldwide, due to the COVID-19 pandemic, accelerated the usage and development of financial technology. Robotic Process Automation, also known as RPA, is one of the newest trends in FinTech.
RPA uses artificial intelligence to automate the processing of personal bank information, including changing personal details or viewing a bank application status. Another innovative trend is AI chatbots which can conveniently help customers with their problems in real-time, therefore eliminating face-to-face customer service.
In short, FinTech is the incorporation of technology in financial services, to make it better, faster, and more accurate. This has made trading money, getting a loan, and investing more convenient. It has led to the automation of financial services in national banks, corporations, and small businesses and it will continue to expand further.