Written by Harikrishna Kundariya, a marketer, developer, designer, IoT, ChatBot & Blockchain savvy, co-founder, and Director of eSparkBiz Technologies.
With a massive transaction volume, today's finance is way more extensive than everyone ever thought of. Financial services shape the modern world and help countries prosper. At the core, how the Fintech industry performs paves the way for financial services enablement in the digital age.
Fullerton Markets fully understands the value of Fintech. In fact, we constantly innovate to enhance and automate our financial services and ensure our clients can take full advantage of what the markets have to offer.
For this reason, we want to share with you what Fintech is all about, so you can appreciate how his domain will be beneficial to your financial journey.
What is FinTech?
Fintech is considered to be an impactful domain, and many brilliant ideas have surfaced lately. But what exactly is Fintech and which technologies are helping finance to accelerate and meet different requirements?
Fintech is a portmanteau of two terms - finance and technology. For a long time, finance was paper-based and manual, making it vulnerable to human errors and problems. This resulted in slow and less-efficient growth.
But as people started using technology and with the onset of Fintech app development companies, the benefits emerged, and adoption became widespread. Some good ideas in the way of making finance easy, fast, and accessible were introduced by using technology in the finance sector. These pioneering ideas became instant hits and opened doors for a new technological domain which we call fintech.
Fintech includes tons of tech innovations that are aimed at simplifying the financial space for everyone.
Pillars Of Fintech
Having known about fintech, let's dive into the pillars that drive fintech ahead.
1. Technology Advancement
Fintech is based on technology, and it is one of the core drivers of its success. Inventions in the tech space and its implementations make finance better. One of the earliest technological advancements was shifting to ATMs and computer-oriented accounting software for banking systems.
The majority of fintech's progress relies on the technological advancements that emerge in the market. Innovations that are cost-effective and easy to implement drive the use of technology in the finance sector.
2. Customer Experience
Today, everyone seeks financial services, and they are not limited to the elite few. Moreover, most service providers operate on fragile margins, so they need to have a better customer experience. Without the right technological tools, providing a customer experience at a large scale is well nigh impossible.
Digital Customer Experience (DCX) can be considered a pillar of fintech because the usage of any fintech application largely relies on the benefits and experience it provides to the users. DCX ensures availability, functionality, and speed -- the three core UX factors for any application, which are all the more critical in fintech.
3. Data Availability
Without data, you cannot imagine a fintech application. Nothing can be done if you don't have data, whether it is a capital market application or just an accounting service.
Today, data is power, and the ones who have more data will surely succeed. Data availability is essential for fintech because you cannot rely on machines entirely. Higher data availability will help you make better financial decisions, and that is what everyone needs in the financial sector.
Technologies Shaping The Future Of Finance
Blockchain technology has covered a long way from its theoretical mentions in 1991 to becoming the base of decentralized finance. It is a technology that can disrupt the entire financial sector single-handedly.
Leveraging blockchain, companies can create tamper-proof fintech applications. This is really important because cyber hacks can tamper with any data piece, and the meaning of any data is completely lost.
Blockchain protects financial data at all costs, and it provides the highest levels of security. Any data that resides on a blockchain cannot be edited or deleted; it can be just viewed and validated. This proves a perfect base for banking and financial service applications where companies want to minimize fraud and stop manipulation.
Blockchain can be a proven datastore of important information, and it can secure finance applications like never before.
Cybercrime rates are 600% higher than before, and protecting sensitive data is a priority for everyone. Financial service providers need to enhance their cyber security measures to protect themselves and their clients.
There are automated cyber security applications that can be triggered for any attempt of data manipulation and tampering. Such applications will help fintech and finance by making the information secure and unmodifiable. This becomes a great benefit for companies that use software applications to keep track of their finances, and also for stakeholders, as all the data is transparent and no covering is done.
If due to some outage, any disaster takes place, a proper disaster recovery mechanism can be set up, and financial services can work uninterrupted.
Discover how Fullerton Markets protects its clients from cybercrimes while providing them with a reliable trading platform.
Cloud computing is another technology that can help boost fintech business. Most fintech apps can become a hit quickly, and to scale at such rapid speeds; you need to have agile servers and other resources.
But fintech apps can also drop users, so you need to have an infrastructure solution that can both scale up and scale down on-demand -- in terms of software, users, and virtual machines (VMs). Apps developed with cloud-native technology fulfil these demands -- they scale out, not up. This is conducive to features like multi-tenancy, automation, and real-time updates, which are crucial for fintech workloads that have high transaction volume and need to be reliable at the same time.
Moreover, cloud computing helps developers to choose their resource power. Such setups are instrumental as fintech applications can cater to their customers round the clock and also save money.
As cloud computing progresses, it will help fintech applications to work seamlessly across all internet-enabled devices and thus increase the usage of fintech applications.
Artificial intelligence is a technology that is used widely today; it holds the power to decrease human efforts and reliability on humans. With artificial intelligence, financial services can be sped up and improved to a great extent.
AI-enabled chatbots can help complete KYC for customers and onboard them quickly. Moreover, AI models can predict each financial service's risk and help businesses perform operations at minimal risks.
Credit default is one such problem that most financial service providers face, but with the help of AI-enabled fintech applications, it can be minimized to a great extent. Using AI correctly, finance business can be simplified, and more people can be served in a better manner.
How Fintech Is Changing the Future Of Finance?
Increased Digital Transactions
Virtual currency in the form of credit and debit cards is used to shop and pay around the world. Moreover, many countries have specialized instant payment processing systems such as UPI, which has been a hit in India.
With the widely available fintech platforms, digital transactions are increasing, and the world is progressing towards cashless payment. This helps governments to cut down expenses on issuing paper currency and keeps the environment safe.
As for consumers and end-users, this means completing transactions quickly and conveniently. This is why Fullerton Markets provide clients with a variety of funding and withdrawal options for their convenience.
By Using Blockchain And CryptoCurrency
There are many fintech giants that have tapped on leveraging blockchain and cryptocurrency. These are new methods for payment and serve as the base of modern finance. With the right understanding, companies are using blockchain’s irreversible characteristics to their benefit by developing critical applications on blockchain principles. This helps to keep the company’s data secure.
Moreover, many stock exchanges are using blockchain technology to process transactions, and implement ways to protect small retail traders. When fully implemented, blockchain technology can efficiently track down fraudulent manipulations and stop them to a greater extent.
With these technologies in place, finance will significantly improve. Consequently, Fintech will become a domain that will grow exponentially in the coming years.
The same technologies will help Fullerton Markets become an Asian Financial Powerhouse. So keep an eye out as your committed trading partner provides you with enhanced and automated services geared to helping you achieve financial growth faster and safer.
Ready to grow your wealth in the world's largest financial market and enjoy unlimited bonuses at the same time? No better place to start than right here with us! Start trading with Fullerton Markets today by opening an account:
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