FINTECH is creative and innovative tools that have been designed to make life better both for the end users and also for companies and industries that will benefit from it.
As the technology behind FINTECH continues to grow and be refined, the global financial sector is changing because of it. These are some of the ways FINTECH is changing the global finance segment.
Lending
One of the biggest and most profitable sectors of the financial industry is the lending sector. Most financial institutions have used the existing models to create new ones that better fit their business models and reach their profit targets.
The role of the bank has always been to act as an intermediary between the client with extra savings and the one that needs a loan to manage the transaction and the risk at hand. FINTECH is changing this business model with the advent of Peer to Peer lending (P2P) which in a nutshell seeks to remove the middleman entirely from the equation to connect both sides directly aiming at reducing the cost of borrowing. This type of lending has become so popular over the last few years.
Payments
Another major role played by banks is to facilitate the transfer of funds between parties. FINTECHs are working towards filling this space and providing better terms when it comes to transferring funds between users.
Most notable developments are in the areas of local and international payments.
Several companies are working every day to make transfers and paying merchants much easier.
E-commerce
As the retail business continues to suffer and shrink by the day, online stores are expanding and getting new clients by the day. As such, customers want to feel safe while buying goods online. This is exactly why customers are seeking shopping experiences that are not only quick but are also safe.
FINTECH players have been able to provide consumers with such a premium experience which includes hassle-free quick and easy shopping, no issue of phishing for passwords and without charging any interest on deferral payments. The collaboration of the #ecommerce players with fintech industry has reduced the payment drop-out rate by 10%.
Thanks to FINTECH innovations, access to financial