Think about how you can access pretty much anything so easily that your location hardly matters. You can send money to someone in another country, you can order anything to your doorstep in a matter of days, even minutes and hours. These changes are a result of our desire for innovation. With each new development, our standards as consumers rise and we begin to demand more.
Turn the clocks back 100 years, everything we have today would be unimaginable, we even laugh at how inefficient the inventions of those times were. Yet, even the inventions of hundreds or thousands of years ago were leading to what we have today. This rate of development will be endless, generations 100 of years from now will laugh at the technology we think is great. If you want to keep up during this time, you should acknowledge this change and adapt to it.
Now the term “Fintech” (born out of a combination of the words “financial” and “technology”) is a broad term with many different aspects. Some examples that will ring a bell are PayPal or GoFundMe, Cryptocurrency, online banking… get the idea? The true wide spreading of fintech comes when major companies get involved. Tech companies like Apple, Amazon, Microsoft, and Facebook are major players in this field. Each of these highly trusted companies now offers a banking outlet. Why? Haven’t they done enough? Nope, and they see the potential this business has for the future.
So why is this concept of fintech important? What does it mean to you? Here are some aspects of fintech that contribute to modern society:
Ease of Transaction
No matter who you are or where you are, you can buy nearly anything in an instant. Even the need to go to physical stores seems to be less relevant in this day and age. Additionally, what relevance does cash have other than the knowledge that your bank account didn’t change from a purchase? Need to pay someone back? One swipe and it’s done.
Cost-Effective
Businesses and individuals can avoid hidden fees present with traditional banking. Instead, sending and receiving payments comes at a more reduced cost while being transparent about where the fees go. Why is that? Because fintech services are not deposit institutions, they operate virtually and are flexible.
Customized Experience
Fintech services tend to be able to figure out the interests of their consumers. Think about how Instagram or TikTok shows you content that is relevant to your interests. This is the same concept, and while one may think “oh they want me to keep consuming” they are giving you access to the things you deem necessary.
Security
You’ve most likely heard the term “blockchain” and probably rolled your eyes because you have no idea what it means. Going back to the ease of transaction feature, the blockchain is what makes this possible. When you send money somewhere, it is stored in this database for the transaction to be tracked and verified.
Still Only The Beginning
The features of fintech today are already amazing, but there is still confusion for some as to what it does. The good news is, that the state of fintech is at the bottom of a hill. Innovation will take place, people will become more educated on its features, and our experience of consumption will be far easier.
Conclusion
Fintech is challenging the “traditional” ways we have always done things, but it is replacing them with features that suit the needs of our world today. Of Course, it can be intimidating as everyone becomes used to certain ways of doing things. Remember, people in the ’90s and early 2000s thought the internet wasn’t going to last. Innovation is what allows this world to stay connected and live our best lives.
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