Introduction

FinTech refers to Financial Technology. Financial Technology is the application of new technological advancements to products and services in the industry of finance. It enhances or automates financial services and processes. It is engaged in the rapidly growing broad industries serving both the consumers and businesses. Its applications can be seen from mobile banking and insurances to cryptocurrency and the investment applications.

 

Uses & applications of FinTech

Financial technology has wide-spread applications. The main uses of it are discussed below-

 

Crowdfunding platforms,

 

Blockchain,

 

Cryptocurrency,

 

Mobile payments,

 

Insurance,

 

Robo advising applications,

 

Stock trading applications,

 

Budgeting applications

 

Crowdfunding platforms

Crowdfunding is a newly developed process of raising funds with collective efforts of family, friends, relatives, etc. This can be done primarily through online social media. It is almost the opposite of business funding.

 

 

Blockchain

A Blockchain is a system that records information in such a way that makes it hard to change or hack or cheat the system. Each of them is a ledger of transactions forming a block. It has a direct effect on the next block through the cryptographic technique called hashing. There is no third party involved in this method. It also provides a trusted transaction. It helps to reduce costs.

 

Cryptocurrency

Cryptocurrency is the digital form of money. This money is designed to be safe and secure. This currency is engaged with the internet who uses cryptographic technologies. Bitcoin is the first cryptocurrency. Bitcoin was created in the year 2009. It is the best-known cryptocurrency. It uses decentralized technologies. Ethereum, Ripple, Litecoin are also common cryptocurrencies besides Bitcoin.

 

Mobile payments

Mobile payments refer to the payments operated under the financial regulation and it is performed through the mobile device. In this facility, a consumer uses mobile to pay instead of cash or cheque or credit card. These are secure, fast, and convenient. It is enabled in the stores by NFC technology.

 

Insurance

Insurance is a contract in which financial protection and is received by individuals or entities against any loss from an insurance company. it is presented by a policy. There are various kind s of policies like life, health, homeowners, etc.

 

Robo advising applications

 

 

Stock trading applications

One of the biggest innovations in financial technology is the development of stock-trading apps. When the investors have to do a stock exchange directly like the NYSE or Nasdaq, the investors can buy and sell the stocks at just with a tap of a finger on their mobile device.

 

Budgeting applications

After the revolution in Financial technology, the development of the financial services apps has been prompted. The consumers can easily track their income, expenses, and other budgeting tools that have revolutionized the way for the consumers to think about their money.

 

Who uses FinTech?

FinTech is used in the Mobile Payments, Insurance, Cryptocurrency and Blockchain Technology, Stock Trading and Robo-Advice, Digital Lending and Credit, AI Virtual Assistants, Budgeting Assistance Apps.

 

Why use Fintech?

Information technology plays a huge role in financial services. The most important reason is the use of it on the electronic networks that exchange information.

Currently, the financial services are all molded based on creating a faster and more efficient service for the customers. It focuses on more mobile-based options as it is quicker. Since the cloud-based information technology is often used. So the importance of information technology has been incredibly vital.