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Digital Wallet Solutions, Mobile Wallet Platform

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FinTech is no longer a jargon of the banking industry. Instead, it has become a familiar term in technology in general. The Global investments in FinTech ventures has doubled to a whopping $112 billion as compared to $51 billion last year. This is more than an evidence to prove that the digital revolution is at the doorsteps of financial services sector.

This revolution is having a huge impact on all the banks and financial institutions globally. But what actually FinTech is? Let's see.

What is FinTech?

The term FinTech is derived by joining two words which are financial services and digital technology. In a nutshell, FinTech simply prompts the use of digital technology by startups to come up with innovative products and services such as mobile payments, alternative finance, online banking, big data, and overall financial management.

FinTech was introduced as a technology that was used at the back-end systems of financial institutions and banks. However, since then its definition has changed significantly. Now it encompasses several applications that are consumer based. By 2019, you can trade stocks, manage funds, and pay for your insurance and food via this technology.

The FinTech for banking has impacted numerous applications and revolutionized the way consumers access their finances. Its impact ranges from mobile payment apps like Square to investment and insurance companies. This profound impact of FinTech can also be seen as a potential threat to the brick-and-mortar or traditional banks.

In today's digital era, customers are not keen to go for services provided by the traditional financial services industry. Instead, they prefer services that are quick and safe. This is the reason why FinTech and FinTech is gaining popularity and causing disruption in the banking and other financial services.

Now, let's see FinTech's impact through some stats. According to a study that took place in 2016, a vast majority of Americans (84 percent) use FinTech for managing their finances. Moreover, the majority of them use between one to three apps in order to manage their finances. In addition, around 69 percent use these apps at least a few times a week and around one-third use it on a daily basis.

Currently there are approx. 1.7 billion people worldwide without any bank accounts. FinTech comes as a savior for all those people by providing an easy option to participate and access the financial services without any need of a bank account. FinTech is the best option to carry out financial inclusion since it's developed to provide consumers a direct access to their finances through simple yet cutting-edge technology.

How FinTech is changing the financial industry

Smart Chip Technology

Smart chip ATM cards have significantly helped in minimizing the financial loss that occur in the case of mishaps. It comes with EMV technology that is embedded in the chip. This technology uses a one-time password for each transaction. This increases the security since the code is valid only for one transaction; so, even if somebody steals it, he won't be able to do anything.

Bank officials generally advise their customers to memorize their pin to avoid unnecessary hassles and troubles. Bankers are constantly looking for ways to combat thefts and frauds by providing top-notch security to its customers. As compared to smart chip, the magnetic stripe technology uses the same pin for all the transactions, thus making it more susceptible to frauds.

Biometric Sensors

FinTech in banking industry has given birth to many innovations and biometric sensors is one of them. Biometric sensors along with Iris scanners are two technological advancements that ATMs are witnessing. Moreover, these advancements are path breaking since it would simply eliminate the need to carry your plastic card. Furthermore, you won't need to remember your pin.

Apart from providing convenience and ease, these advancements will also make ATMs secure than ever since you'll be able to access your own account without any password. The biometric ATMs use integrated mobile applications, fingerprint sensors, palm, and eye recognition to identify the account's owner. To make the identification more accurate and secure, ATMs also use micro-veins which completely eliminates the errors made by ATMs in customer recognition.

The usage of biometric technology brings a huge sigh of relief for all the customers who get panic even at the thought of losing their ATM card. It's because due to this, they would be able to access their funds even when they have lost their card.

Online Transactions

Monetary Control Act (MCA) was setup in 1980 with the primary purpose of promoting an efficient payment system in the entire country by encouraging competition between private sector payment service providers and the Federal Reserve.

The Automated Clearing House (ACH) assisted in efficient processing all the electronic interbank payments taking place in the whole country. These electronic payments include insurance premiums, social security, salary, dividend payments, bill payments, and direct debits of mortgage.

The Federal Reserve report for the year 2016 reads that the number of online transactions processed in that year 2015 were more than 3362 million, which is way more than 1189 million transactions that took place in 2012. A similar kind of rise was also seen in the credit card payments. Furthermore, there was a steep rise of more than 45% in the number of payments redirected from the merchant sites as compared to 2012.

The same trend was followed debit card users too. There was a massive increase of more than 90% in debit card users. In the year, 2012, there were about 2.1 million debit card transactions which rose to over 270 million debit transactions in 2015.

Omni-channel & branchless banking

FinTech financial services is transforming the entire banking system from a branch-specific process to various digital channels such as online, social, and mobile. It also reduces the bank's dependency on its brick and mortar branches to function.

As a result, we see many banks reducing their number of branches by adopting the omnichannel banking. Only in the European Union, around 9100 bank branches were shut down by the end of 2016.

Customer service chatbots

FinTech providers have also come up with customer service chatbots that have really become popular in the recent past. Chatbots are nothing but bits of software that use machine learning and natural language processing that enables them to constantly learn from human interaction.

Chatbots are highly efficient as they streamline customer interactions like query handling and directing customers to the required departments.

Chatbots can also perform other functions such as that of Bank of America's chatbot Erica, which can provide investment advice to its customers. Whereas, the chatbot used by UBS can scan customer emails autonomously thus reducing the total time taken in the task from 45 minutes to mind-boggling two minutes. Similarly, a chatbot used by Japan's leading bank can help customers to find relevant piece of information on their website.

Chatbots have become an integral part of all the banks since it not only reduces costs and enhances the customer satisfaction but also allows agents in the call centers to focus on value addition.

Artificial intelligence (AI)

Over the years, AI has become an integral part of the FinTech banking services. AI along with Machine learning is vital for fraud detection. The software that banks use for fraud detection generates alerts whenever there's a potential fraudulent transaction. Later it is backed up by the human investigation that finally determines if the attack was real or false.

However, with time the detection of attacks is becoming difficult since the attacks are becoming more sophisticated as the day passes. Due to which a lot of time and money is consumed. Moreover, the risk of customer data loss is always there. To combat this issue, banks are now adopting AI technology.

According to McKinsey, the adoption of machine learning-driven statistical modeling, data aggregation platform, and process automation can totally transform the AML operations by simply infusing new efficiencies.

For example, the data aggregation platforms can account data and mine unstructured transaction to offer 360-degree customer view. This view assists in faster transaction validation. Moreover, with machine learning algorithms, the banks can leverage historical data to predict and determine patterns of a fraud attack. This will reduce the manual effort by approx. 50%.

E-Wallets

The immense growth of E-wallets is another indicator of the rise of FinTech financial services. Samsung Pay, PayPal, Android Pay, and Apple Pay and are some of the major e-wallet companies in the world. These wallets are used for a plethora of purposes namely P2P payments, top-up & utility bills, international remittances, booking tickets, and many more.

There are also some standalone wallets such as Starbucks and Walmart Pay. E-wallet have managed to attract users due to their tempting offerings which includes exciting offers, lucrative cashbacks, and reward points, and many more. Due to their huge success, many banks are now realizing its importance and are recognizing e-wallets as a collaborative measure to embrace the technological advancements.

Mobile Banking

The increase in the use of smartphones has forced banks to come up with mobile applications that offers convenient FinTech banking services. Today, most of the banks have a mobile application which has a user-friendly interface. Banks have also come up with mobile apps that recognizes the fingerprints of the user. The application performs this function without any biometric app or hardware.

A mobile application provides quick access to funds. With a mobile application, the user can perform several banking functions such as quick bill pays, check deposit, account balance, statements, and many more.

Conclusion

The advent of cutting-edge technologies coupled with customer's demand for safe and more user-friendly banking experience has led the banks and financial services to readily adoption of FinTech finance technology.

Today FinTech is bigger than ever as it includes everything that we just mentioned in this blog. In coming years, it is all set to become ever bigger with retail banking software, financial core banking software, and many other components coming under it. Only time will tell how big of an impact will FinTech have in our world.

Product manager of Digipay.guru, one of the leading digital wallet solution. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.

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What is FinTech and how it has impacted banking?

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FinTech is no longer a jargon of the banking industry. Instead, it has become a familiar term in technology in general. The Global investments in FinTech ventures has doubled to a whopping $112 billion as compared to $51 billion last year.

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Technological improvements are playing an essential role in all industries, allowing businesses and individuals to complete tasks with a few clicks of a mouse, saving time and money. With the advanced techniques and customer demands, the world has gotten more competitive. Fintech technologies , which have recently been renovated, are governing financial sectors such as banks, insurance, payment providers, and so on, as they change the financial ecosystem and digitally shift the basic process of payment ways.

All of us are aware that digitalization has altered the way service providers in the banking industry target customers with mobile applications without difficulty. Almost all sectors of the financial services industry had a constant perception of technology-driven mobile apps. The convergence of finance and technology has resulted in a sensational development that has begun to accelerate development and has revolutionized the financial industry's predicament.

What is Fintech?

Fintech is the combination of financial principles and techniques. Businesses provide financial services using technology in a variety of ways, including digital payments and blockchain. Fintech refers to any organization that performs financial services using mobile devices, the internet, or cloud services. Fintech has seen significant advancements, changing the way customers access their finances. Traditional banking procedures and financial industries have been disrupted by fintech, posing a challenge to traditional brick-and-mortar financial institutions.

Initially, the technology was mainly applicable to back-end processes, but fintech is now more consumer-focused. Fintech will have an impact on stock trading, fund management, insurance management, food payments and more.

Nowadays, when customer satisfaction is more important than ever, fintech has created solutions that better meet client needs in terms of comfort, affordability and personalization.

Investing systems enable customers to keep their assets in a single location while also allowing them to manage their financial accounts at any time and from anywhere in the world via a centralized management pane.

Automation can be increased by using data analysis tools, particularly in asset rebalancing. Internet bot-enabled platforms are being utilized to advise customers on better asset management and investing strategies.

People all over the world can now use their mobile phones for applying for a loan . New data sources and improved risk algorithms are allowing loans to be extended to previously unaffordable groups.

Customers can also request credit reports numerous times per year without disclosing their credit score. This makes the entire lending industry's backend considerably more open.

Online trading applications have enabled anyone with an internet connection to invest in the stock market, evaluate risks instantaneously and share information inside the online system itself.

Customers are now able to handle their money online. Banks and start-ups in this field are developing online wallets and profiles to sustain services, resulting in an improved and quicker user experience, which primarily contributes to the world of digitalization.

Insurance firms are utilizing digital solutions to improve the client experience. Users can undertake actions such as acquiring additional services and filling out claims straight from the app at any time, without having to go through the time-consuming process that was previously required.

Functional Aspects of Fintech Applications

Let us now look at the functionality of Fintech apps and how they improve our lives:

Customization

With the use of technology such as artificial intelligence and machine learning, financial applications can now better comprehend the goals and wishes of their customers using real-world data. Finding a means to customize a demand for financial services based on the user's preferences improves the overall experience.

Integration

For Fintech apps, integration consists of two components: the capacity to integrate with multiple other systems and cross-platform synchronization. Individuals and businesses both require a variety of services, such as mobile payments, crowdsourcing and financial resource management. If you have a financial application that operates on many platforms, it is recommended that your setup be shared across all of these platforms to provide a uniform experience.

Authentication

With money being such a delicate subject, we require trustworthy and safe apps; users will be apprehensive of utilizing a brand new app that has exceptional security features. Two-factor authentication is the best method for protecting digital accounts. For these types of apps, two-factor authentication is the most commonly utilized security solution. Third-party services, such as Google Authenticator, Digi Pass and others, enable SMS verification or the installation of a unique app on the user's smartphone.

Data collection and analysis

Users want to be able to monitor and evaluate their financial transactions and transaction records regardless of which Fintech app they use. Users may now simply follow their financial movements and check their transaction history. Having the information available in a single dashboard and with visuals or visual representations always improves the user's online experience and allows them to easily comprehend swings in their financial habits with trustworthy insights.

Data security

Data privacy and security are critical for any financial organization, particularly in this day and age when cybercrime is on the rise. Various corporate application development organizations assist financial institutions in protecting their data with blockchain technologies, thereby assisting them in controlling the issue. With the banking sector facing new issues, blockchain business applications could be the way to data security.

Customer attraction

Fintech startups have a high rate of success in raising capital. However, when it comes to acquiring new customers, they confront a significant barrier, as every new bank has its Fintech app to manage operations and lessen reliance on others. To attract new consumers, a financial institution needs a mobile app.

Poor knowledge

Because Fintech firms do not adhere to the traditional ways of financial institutions, the methods employed to serve customers vary. These Fintech institutions have the potential to disrupt financial entrepreneurs. However, unless sufficient training is provided to all users, faults might prevent these businesses from attaining their full potential.

Fintech Has the Potential to Improve the Future of the Finance Industry

The concept of fintech has been thriving in the financial business sectors all around the world. There have been considerable advances in the performance of globally known financial companies as a result of the creation and widespread use of Fintech app development. Analysts predict that in the future, Fintech will be one of the most in-demand technologies and solutions.

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How fintech application development is transforming the finance industry - Silicon Prairie News

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This is an op-ed contributed by Robert McMillen and does not necessarily reflect the views of Silicon Prairie News. Technological improvements are playing an essential role in all industries, allowing businesses and individuals to complete tasks with a few clicks of a mouse, saving time and money.

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As the demand for digital and mobile financial services has grown during the pandemic and in developing countries specifically, financial analysts look at how fintech fuels economic growth. One finding is that higher digital financial inclusion in payments goes hand in hand with increased fintech consumer financing.

The fintech industry is found to boost annual economic growth by up to 2.2 percent, mostly by focusing on digital banking solutions. However, the payment infrastructure depends on the country's context. Digital payments are widely used in advanced economies, whereas most payment methods in emerging economies solely use cash. And here lies the key to unlocking faster development in emerging economies.

This piece looks at the reasons and outcomes of fintech investments in financial services of developing economies.

What explains the rise in fintech services

Wherever we live, the perks of various digital financial services are great for improving our economic position and investing in the future. Examples include credit, e-commerce transactions, store purchases, remittances, cross-border payments, insurance, digital lending, and saving management-all together giving us greater financial and economic freedom. But particularly in emerging economies, fintech makes people with previously limited access more financially aware and better at handling their personal finances.

Current trends show that the usage of digital banking services is higher where a culture of financial services has already existed but where access to traditional financial institutions is constrained. There is also greater competition amongst traditional providers in these regions, and banks' operational inefficiencies are associated with the supply of mobile money services. Here lies an exciting market and investment opportunities for new financial products.

So, by offering economic freedom, fintech fuels growth in developing countries. Today, the most positive effects of the financial services they offer are found in countries such as China, the United States, India, and Mexico. What these countries have in common is a high level of cell phone penetration, wide internet connectivity, and ways of leveraging mobile technology. As more population groups are given access to purchasing and selling products as providers and consumers, social development is strengthened. It also entails the beginning of a tech community and new job openings, in addition to more investment opportunities.

The cycle of fintech investments

Greater inclusivity, productivity, and infrastructural changes are some tangible outcomes of fintech. The variables reduce poverty and (gender) equality and strengthen a country's workforce. Improving access to financial flows for startups and businesses can also reduce the gap between sectors as between social classes.

Without a bank account, people in rural areas and marginalized groups have difficulties purchasing and selling better products. But, with the ability of mobile pay, they receive access to many more goods and services than before. This helps reduce the gender gap. According to the World Bank, 57% of women globally lack access to financial products, preventing financial independence and the opportunity to open a business.

A growing fintech community also means a faster way for the younger generation to become professional leaders at an earlier stage. Over time, an entire workforce and a new generation of technological proficient citizens will contribute to solving small and big challenges at every society level with the help of fintech.

The cycle of fintech investments related to payment services will open up new business opportunities for e-commerce and on-demand services. Micro-payments, such as small credits and e-loans, help individuals with little to no budget to bootstrap businesses-online as well as in-person. Lastly, the increased activity of micro-businesses drives economic growth by unlocking consumer spending.

From the provider side of things, fintech means a cheaper and feasible implementation of traditional products and services. Digital payment methods better identify the recipient and sender and erase system inefficiencies, meaning existing banks will increase their reach when investing in fintech solutions. Indeed, fintech allows for secure, fast, and low-cost payment services from every angle. The recipe is quite straightforward. But what are the gains for governments and institutions?

How fintech is transforming the public sector

Beyond a more technological and financially literate, and inclusive population, it's ultimately a country's overall infrastructural improvement that makes for a growing economy-and it's easy to notice in the public sector. By providing more seamless transactions, fintech allows efficient government-run operations at an affordable cost, internally and externally. Public services are one transformative area where fintech enhances access to crucial social areas such as healthcare and education by developing more innovative systems. As digital financial services expand credit access and diminish the necessity of cash agents, fintech solutions make loans more accessible and allow consumers to connect directly into the national payments system.

And the more people can register a business online and access financial services, the easier it will be for governments to contract small and medium-sized companies, not just business giants.

But as nothing comes without a cost or a risk, the focus needs to lie not only on the adoption of fintech and its opportunities but also on reliable and safe implementation. Expenditure, tax revenue, and possibly enabling corruption-cashless programs are still hard to implement effectively. Nevertheless, more digital-based subsidized programs are not only beneficial, but a sought after area technology experts are desperate to fill.

In the long run, a sustainable business environment must include all relevant actors: banks, telecommunications companies, manufacturers, fintech, and retail companies; bringing all sectors together. Some regions, such as Asia, South Africa, and Latin America, are known for having a better fintech infrastructure than others. However, as the industry is gradually evolving all over the world, so will more and more populations benefit from more accessible financial services as institutions become aware of the public and private advantages.

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Fintech for Development: How Digital Financial Services Boost Economic Growth

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As the demand for digital and mobile financial services has grown during the pandemic and in developing countries specifically, financial analysts look at how fintech fuels economic growth. One finding is that higher digital financial inclusion in payments goes hand in hand with increased fintech consumer financing.

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How FinTech is upending a traditional industry - SBN

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Babst Calland's Moore Capito looks at how FinTech is revolutionizing the financial industry, the opportunities it presents and challenges it poses.

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Paige PuntilloJanuary 28, 2021

Since the rise of financial technology, a crop of fintech start-ups capitalized on big data technologies and emerged tech-enabled business finance models disrupting traditional financial institutions and their existing models. With technology opening up new doors, anyone with an internet connection can make payments, transfer money, take out a loan, or become an investor themselves. Fintech business models are shaking the industry compelled long-standing incumbents to embrace new technologies or fall behind.

Through the eyes of traditional institutions and the media, this shift in financial services has labeled fintech start-ups as a "disruptor." But, is financial technology really disruptive? Globalization, growth, and digital adaptation was inevitable. Fintech did not change finance; the world changed. Demand from the underbanked and the digital consumer rose, and incumbents were slow to adapt, opening opportunities for fintech to grow and progress the system.

We are now witnessing mobile banking, online lending platforms, automated trading and investing, algorithmic risk management, digital currencies, and expansive options for investors all driven by cutting-edge technology. As fintech innovation deconstructs the walls of the traditional banking system, digital technologies are simultaneously changing consumer's behavior and expectations.

Fintech firms and those adopting fintech models are merely riding the digital wave to meet consumers with the same digital experience offered by Google, Amazon, and Facebook. Alongside our societal tech-transformation, sectors within the finance ecosystem such as banking, payments, lending, investments, and insurance are evolving with fintech leading the way.

Fintech's driving factors:
Lowered Barriers of Entry
The rise of digital technologies lowered the barriers of entry and brought us the golden age of start-ups and entrepreneurship. In the finance world, the antiquated U.S. banking system that exclusively held so much power was reluctant to adapt to technologies opening the opportunity for fintech firms to disrupt the financial ecosystem. The unmet demand for digital financial services, small business financing, and digitally driven customers emerged a new marketplace for fintech start-ups to enter.
Customer Centricity
With more options and competition in the market, businesses have shifted their focus to the customer, their needs, and how they can meet them more efficiently than their competitors. Furthermore, consumer behavior has progressed with the adoption of tech to the digital experience, and so have their expectations, including those of their financial service providers. Compared to traditional institutions, fintech leaders focus on customer-centric operations identifying, specializing, and excelling in niche products or services, providing enhanced accessibility, convenience, and tailored products.
Big data and risk management
Another driving factor of the fintech revolution is the big data and machine learning technologies that reveal advanced insights such as behavioral patterns as a factor for measuring creditworthiness that are increasing capabilities while decreasing risk. The introduction of tech-enabled financing models like crowdfunding and peer-to-peer (P2P) lending has allowed fintech lenders like LQD Business Finance to flourish and have enabled widespread access to funding for borrowers, which is expected to rise over the next ten years.
Major investments in fintech
As society follows a digital transformation, an increasing number of businesses and consumers are adopting digital payments, transfers, mobile banking, marketplace lending, and many other fintech services, driving demand and growth of the fintech market. The global fintech market has reached over $100M in value and is expected to surpass $300B by 2030. An increase in funding and investments in fintech are supported by predictions of further advancements in banking, payments, lending, financial planning, and insurance. Investors and technoptimists are buying in and expecting to see fintech growth and widespread/pervasive adaption.

AI intelligence continues to grow and reduce costs

First adopted by fintech firms, artificial intelligence (AI) improves operational efficiencies and significantly reduces costs spreading the embrace throughout all financial institutions. According to BFSI Market Research Report on the financial industry, AI will reach $130M with a 28% annual growth rate by 2026. With AI's ability to work with unstructured data and machine learning algorithms, it is reshaping how financial services operate, meet customer-centric needs, and tighten cybersecurity.

As big data was a driving entry point for fintech start-ups, artificial intelligence and machine learning was the window of opportunity for digital lenders. Instead of manually processing, assessing risk, and underwriting loans like traditional lending institutions, fintech lenders utilize AI to analyze creditworthiness and manage risk. For example, LQD Business Finance, a fintech lender, uses artificial intelligence and machine learning technologies to create automations within their underwriting process. LQD Business Finance analyzes creditworthiness with AI and predictive analytics by intaking a more inclusive range of data and behavioral factors which increases accuracy and reduces risk while qualifying a wider range of businesses for adequate valued financing.

Following the success of fintech disruptor's, AI technology is becoming widely adopted in the banking sector. Among the first, Bank of America found success with their virtual assistant, Erica, who uses predictive analytics and cognitive messaging to complete customer requests and provide financial guidance at a much faster speed than a human. Erica quickly set the standard for banks and other financial services that are adopting chatbots, automated routine banking tasks, and other smart systems. Gartner predicts that by 2022, 70 percent of all customer interactions will involve AI tools like chatbots and machine learning messaging. This not only enhances the self-service customer experience, but automated procedures significantly reduce manual labor costs. Per the Autonomous report in the financial industry, AI technologies are expected to reduce 22% of financial service operating costs by 2030 saving upwards of $1 trillion in the next 10 years. The cost of purchasing or developing AI technologies is significant to take on; nonetheless, the embrace of AI is indicative of the impact it has on cost optimization.

Artificial intelligence advancements are additionally playing a key role in cybersecurity. With predictive analytics and real-time data integration, AI is enabling firms to detect financial fraud threats, protect customers' payment card industry (PCI) data, and secure fintech's financial assets.

AI is well poised to increase the reach and scope of financial institutions. Across all financial sectors such as payments, lending, insurance, and asset management, AI can enhance security, profile risk, evaluate credit, and provide digital assistance such as robot transactions, financial advisory, and other scenarios like managing dividends. Institutions and investors are embracing artificial intelligence to the point where it will become imperative to survive.

Blockchain technology predicted to change the finance landscape

The global financial system that moves trillions of dollars a day has been exclusively operated by centralized financial intermediaries and is crowded with problems. With inefficient costs due to fees, delays, onerous paperwork, regulatory costs, fraud, and manual processes transferred into a digital space without real reinvention, financial technology's intervention has been critical to the economy's endurance and is continuing to lead the way with blockchain technology.

Originally developed by cryptocurrencies, blockchain technology is a distributed ledger that stores and moves anything of value and runs on all participants' devices without a central ledger in control. For example, Bitcoin, an anonymous cryptocurrency database, exists and is maintained across all global participants; there is no single party that authorizes transactions. Each user transaction forms a data block with a timestamp that enters onto the database chain that cannot be altered once added; and the more participants and data entered, the more secure it becomes. Recently, a man with $250 million worth of Bitcoin forgot his password, but without a gatekeeper to grant him access into his account, he is set to lose it all. Blockchain's decentralized security is a sad story for this man, but this revolutionary technology has created cybersecurity within a database that has never been as highly achieved nor accepted in fear of fraud. Compared to other industries and the entire economy, the financial services sector suffers the most from fraud; and as fintech further integrates financial services into the digital world, demand for cybersecurity is on the rise and blockchain might just be the solution.

The adoption of blockchain technology can further provide more transparency and decrease the need for financial intermediaries such as banks and governments and potentially provide underserved populations with wider access to various financial tools. With blockchain's distributed ledger technology, assets, equity, deeds, or anything of value can be transferred and stored securely, privately, and from peer-to-peer creating accessibility and a newfound trust like never before. Today, anyone, individuals, sole proprietors, businesses, can make agreements and transactions without the need of traditional gatekeepers and human labor such as contracting, settling, documenting, and other record-keeping tasks.

Blockchain technology is receiving a lot of buzz and investments from its role behind cryptocurrencies; however, its adoption and productivity within financial services are just beginning. Many firms in the financial industry are investing in the promise of blockchain solutions and the security and efficiency optimization that blockchain-based applications will provide. Since blockchain technology runs on cryptography and exists digitally among participants' devices rather than a brick-and-mortar bank's operating business hours, transaction availability, speed, and costs can be highly optimized. And, blockchain's decentralized nature allows all data entered to be viewed and tracked making transactions transparent and traceable which accounts for more security and inclusivity.

Blockchain can further change the financial industry through payments, transfers, lending, etc., and many incumbents like Goldman Sachs and JPMorgan are investing in the possibility of the technology. With advanced security, heightened accessibility, and optimized operational efficiency, the development of blockchain remains on the distribution path set to change financial transactions worldwide.

The proliferation of fintech data computing is declining costs and reshaping many finance sectors. With optimized customer service, enhanced security, and increased access to financial tools we are experiencing an increasingly competitive financial market and firms grasping for the most sophisticated and innovative financial services and platforms. Established incumbents and robust fintech start-ups are beginning to collaborate their powers, and fintech is will continue to impact financial services such as asset management, insurance, regulatory technology, complete digital banking, and borrowing and lending.

Asset and investment management services are embracing AI and machine learning and experiencing a shift from tech-enabled wealth managers to cloud-based, automated robo-advisory platforms. Using behavioral and predictive algorithms to assess real-time transactions, investment advice platforms can better identify and quantify risk and form a more holistic view of customers while reducing operational costs. With a transformation on the delivery of financial advice, the pressure is on wealth management firms sending them to adapt to tech-driven models and accept the possibility of standalone robo-advisory becoming mainstream.

We are also finally seeing the emergence of regtech. While the finance industry is one of the most heavily regulated, it also experiences constant changes from dynamic financial technology models and regulatory frameworks following. Regulatory compliance is the last to see its injection of tech-driven models and cost optimization. With big data and cloud computing, regtech is emerging to improve regulatory systems and help financial institutions efficiently adapt to changing law systems reducing regulatory costs and risk. Regtech tools can indicate fraudulent activity minimizing risk and avoiding data breaches.

The borrowing and lending industry has also evolved with fintech's introduction of alternative finance lending models: P2P lending, crowd investing, and small business alternative loans, and has become a playing field for multiple participants. Access to funding has become much more transparent, accessible, and less centralized. Supported by computing power and improved underwriting algorithms, alternative lending models are scalable and deliver better acceptance rates, faster loan approvals, and maximum customer satisfaction. While still smaller in size than incumbents, alternative lending platforms have steadily grown each year and the global fintech lending industry is estimated to reach over $300 billion by 2023.

The digital era has arrived. Whether incumbents were ready or not, it is time to embrace new technologies and join the revolution and the race to be the Googles and the Amazons of the finance world. Cutting-end technology, evolving customer expectations, and emerging fintech business models are reshaping finance as we know it and leading the way to a tech-enabled paradigm shift in modern finance.

LQD Business Finance, an alternative lender, was founded on the future of financial technology and is engineering/creating a paradigm shift towards accessible financial security through transparent, flexible, and efficient financing options. When George Souri, founder and CEO, realized the lack of financing options available to the lower middle-market, he became determined to develop a fintech lending model and proprietary technology to solve this problem. LQD Business Finance's, algorithmic computing technologies now serve businesses with a wide range of short-term business loans and working capital solutions with the highest level of fintech accuracy, sophistication, and efficiency.

LQD Business Finance, among others, is leading the paradigm shift in the financial lending sector and the business finance world driven by fintech innovation.

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How Fintech is Changing Business Finance

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Paige PuntilloJanuary 28, 2021 Since the rise of financial technology, a crop of fintech start-ups capitalized on big data technologies and emerged tech-enabled business finance models disrupting traditional financial institutions and their existing models. With technology opening up new doors, anyone with an internet connection can make payments, transfer money, take out a loan, or become an investor themselves.

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As technology continues to transform the way we live and work, it has now become a key part of our daily lives from how we shop, communicate, and even travel. In the world of personal finance, consumers demand the same, easy digital access to their bank accounts from their mobile devices. When it comes to FinTech and banks, digital banking is transforming traditional financial services by making them simpler, cheaper, and more accessible. According to a study by PwC, in the next three to five years, 82% of financial services providers are expected to adopt Fintech solutions even further. But what exactly is fintech and how is it disrupting and improving nearly every area of finance and the banking industry? Here's a quick look.

What is Fintech?

Fintech (abbreviated from Financial Technology) has been around for decades, but it gained popularity and recognition through the release of smartphone apps. Before the advent of mobile apps, banks required customers to physically visit their branches for some of their services. But a new wave of fintech startups came out to meet this need and offer consumers financial services over the internet. Fintech firms create financial applications that make the process of banking much more convenient. Instead of having to visit a bank branch to get your paycheck, a tax refund, or check your account balance, customers can perform all these transactions and more from their phones and their computers. Today, the Fintech sector is rapidly expanding, and its reach is greater than ever. Fintechs may conjure images of startups and industry-changing technologies, but traditional companies and banks are partnering with fintechs and utilizing their services for their own purposes.

How is Fintech changing banking?

In addition to technology, digital lenders are providing customers with "digital lending" services. These include loans to consumers and businesses, as well as leasing and real estate services. Since 2014, there has been a 900% increase in funding, with Fintechs raising more than $112 billion in investment funding, which is helping financial services providers compete more efficiently and increase their revenue. It is clear that customers prefer quick, convenient options, and banking is no exception.

What is the impact of Fintech on banks?

The omnichannel customer experience: Customers are increasingly communicating with businesses through digital channels. These interactions have changed rapidly, and banks need to adapt their procedures to digitize them as much as possible to make signing contracts and customer service easier. This area is a perfect example of how banks are responding to fintech innovations: exchanges between consumers and banks are carried out via all types of devices, such as smartphones, computers, or tablets, using social media, email, chat, SMS, and other methods. Customers can have consistent and transparent online interactions regardless of the device they use, thanks to different "smart" branches that easily integrate with various digital services. As a result, Fintech startups can provide software that allows banks to adopt multichannel messaging which can be combined with artificial intelligence and machine learning. The goal is to make both operations and communication easier.

Chatbots: Chatbots are without a doubt widely accepted by various banks due to their functionality which serve as a platform for conversational banking or fluid communication processes. Since the implementation of chatbots, agents have been able to efficiently handle customer concerns over the phone. Modern Chatbot technology provides a prompt response that directs the customer to the appropriate services, ensuring customer satisfaction. Chatbots are a useful Fintech for banking solutions that assist 24 hours a day, 7 days a week. Customers are guaranteed feedback regarding their financial services needs or concerns with a hybrid system, even if there is no human contact.

Data Usage: Fintech helps banks make better use of data. Many banks have adopted fintech solutions and taken control of their operations which has increased the speed banks provide services, as well as offer improved flexibility and client commitment. Fintech solutions never disappoint when it comes to data. It becomes easier for them to organize and have a deeper understanding of who their customers are and what they need when they use fintech solutions. Fintech banking services and solutions, such as artificial intelligence, chatbots, and machine-based learning, help customers manage their needs more efficiently. Bank employees are also in a better position to focus on other activities and solve more complex problems because of this. Fintech is a type of digital transformation that enables financial institutions to meet the complex demands of today's banking world.

Timesaving: In any type of business, time is crucial. For a bank, it is even more critical. Fintech banking services solutions enable banks to provide timely services to customers who have adopted the technology. A bank or financial lender can easily calculate a customer's credit score, the interest rate on an applied loan, and set a repayment date using machine learning technologies, among other things. This can be accomplished without the assistance of a bank manager. Fintech peer-to-peer, AI, machine learning, and other technologies reduce time spent on financial operations. Finally, customers can quickly access the services they require in no time.

Fintech vs banks: how are traditional companies adopting Fintech?

Fintech allows companies to stay abreast of current trends in the marketplace. If a financial institution wants to take advantage of new technology, partnering with Fintech companies can facilitate that process. Traditional banks are moving beyond their common comfort zone to modern solutions that ensure bright growth, which is changing the industry's shape. With continued advancements in technology, customers will be able to access better services, more easily, and at a much more affordable cost.

To get a feel for how Fintech can help you, the Ria Money Transfer App is one of the best and quickest ways to send money. With just a few taps, you can send money to be collected in cash at any of our 470,000 global retail locations. Or if you prefer, you can also deposit money directly into your recipient's bank account. Why not give it a try? Download the Ria Money Transfer app today for iOS or Android to get started.

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The Future of Banking: How Fintech is Reshaping the Industry - The Ria Blog

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As technology continues to transform the way we live and work, it has now become a key part of our daily lives from how we shop, communicate, and even travel. In the world of personal finance, consumers demand the same, easy digital access to their bank accounts from their mobile devices.

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