The effectiveness of cutting-edge technology in capturing and processing important data in real-time, is dramatically transforming the way business is done today, the way services and products are conceived, and how consumers are participating in this process. Fintech is responsible for lubricating this transformation. It has brought about a revolution and unleashed an era of innovation, competition, and productivity from the perspective of the generation of jobs.
Fintech’s contribution to the economy is worthy of appreciation and encouragement and its contribution to the economy is invaluable and inestimable. Fintech is not limited to digitizing money. It is actually, about monetizing data. It is very much related to creating and capturing the value-add from important data that was earlier restricted because of the available technology in the past.
As per imarticus “The Fintech industry is not a very new one and has been through its fair share of ups and downs. In spite of a little while of a slump in the middle, there are many ways in which the Fintech industry has strived and turned its trade positive in order to come to be thriving in the present times.” The chief reason for the phenomenal success of this industry is that it provided its services not just to the large or big shot businesses but also, to the insignificant and small business owners including the disadvantaged sectors of society like minorities, immigrants, and women too.
The Boom in Fintech Investment
Even though Fintech is regarded as a young section in the digital economy, it is gaining traction and becoming really influential and popular in the payments and banking sectors. Moreover, there has been a remarkable boost in global investment in this in-demand industry. Fintech industry increased remarkably by around 64 percent from 2017 to Q2 of the year 2018. The Fintech sector took a leap and was estimated to value around 26 billion USD as per CB Insights in 2018.
Fintech businesses are gaining traction and thriving so investors are well-aware that the sector is pretty lucrative and that the return on investment would be quite impressive. This industry would be continuing to grow and become robust by the day which is primarily the reason why several experts firmly believe in and recommend pursuing suitable Fintech certifications to gain entry into this booming industry.
Advantages of Fintech for the Economy
Fintech solutions provide enormous advantages to all businesses particularly, existing small businesses and new businesses. Moreover, we know that SMEs are critical for economic growth. However, some of them could encounter a lot of difficulties while getting funding to survive or thrive.
Fintech could come up with brilliant and efficient solutions at a lower scale that would prove to be beneficial to small businesses and would expose them to a host of funding options. We know that innovative Fintech products could be customized as per the specific requirements of the small businesses.
These may include merchant & e-commerce financing, peer-to-peer lending, online trade finance, online supply chain financing, and invoice finance. You may get in touch with for perfect solutions.
Innovative Fintech solutions could help small businesses with enhanced working capital management, improved cash flow, and more secure and stable funding. For instance, Alibaba is in the habit of monitoring and evaluating online transactions for identifying commercial avenues and then provides loans through Alipay to small businesses.
Along with access to capital and financing, Fintech could be helping businesses via improved customer relationship management, better payment systems, and both invoicing and collections. Fintech solutions would be including e-invoice management portals and supply chain financing.
Fintech facilitates conducting transactions via their tablets or mobile phones thus, boosting efficiency and improving overall customer experience. Moreover, data aggregators could successfully synchronize valuable financial data coming from diverse sources and effectively assimilate bank accounts from diverse financial institutions, thus, helping in the reduction of compliance costs for your business.
Fintech brings about a dramatic reduction in information asymmetry prevalent in the marketplace. It not only contributes toward the improvement of the capacity to complement investors, borrowers, and lenders but also, provides a really level ground that would allow retail investors to have the opportunity of enjoying greater participation in the marketplace. In this context, you must remember that Fintech intermediaries would be responsible for bringing superfluous liquidity to the marketplace.
Moreover, Fintech would be driving improvements in conventional financial services and promoting disruption via innovative products, as well as, services that could be offering benefits to the consumers along with some other sections of the economy. Today we are working hand-in-hand with the Fintech industry for preparing our economy and financial system for the future.
How Do Fintech Firms Assist Credit Unions & Banks?
There are some reasons why the magical mix of legacy banking organizations and Fintech solutions promise you a truly winning synergy for the years to come.
- Fintech helps in boosting the health of conventional financial institutions by improving both profitability and performance. When credit unions and banks start regarding Fintech firms as their partners rather than as firms that are selling products, their horizon would broaden and opportunities would be expanding.
- Fintech solutions would be effective in improving customer preference and retention associated with legacy financial institutions. Fintech firms would be introducing the incredibly powerful tool of data enrichment.
- Fintech solutions would be providing an opportunity to improve your loan portfolio diversification.
- Fintech partnerships could be helping in effectively solving industry-specific issues such as transferring money, securing the entire credit card processing, and processing loans faster. With a robust Fintech partnership, conventional financial companies would be benefitting from leveraging the cutting-edge secure network that could be effectively managing lengthy and time-consuming tasks effortlessly and pretty quickly.
Fintech solutions are of great help to you and are extremely helpful and productive in various sectors. Fintech data has the ability to provide traditional financial organizations a meticulous and in-depth insight into how precisely their customers are actually using their money. This speaks volumes about the power and efficacy of data enrichment provided by the Fintech partnerships. Fintech firms are harnessing the intrinsic power and ability of the cloud in successfully delivering services and product offers customized to the specific requirements of individual clients in real-time.