The movement towards better services – both for customers and the services sector – is the backbone of disruptive technology. After the world financial crisis a decade ago, regulatory frameworks have been established with financial institutions adjusting their own business models to comply.
With regard to financial services, financial technology or Fintech has played a critical role in accelerating flexibility and has evolved to offer some of the latest technologies that granted better management capabilities.
Fintech, which began roughly in the 1950s, has expanded its reach from credit cards and data analysis to new forms of risk assessment that aim to protect consumers and monitor business practices. Center Forward further notes FinTech adoption rose from an average global adoption of 16 percent in 2015 to 33 percent in 2017. The adoption of the technology is also gaining popularity across emerging markets such as South Africa, China, Brazil, India, and Mexico at a rate of 46 percent.
While the practices and development of tools began decades earlier, FinTech as a term and re-introduced movement is a relatively new concept; FinTech is defined as a technological innovation or intervention that facilitates business transactions. Some of these tools include the invention and use of digital money, automated bookkeeping, retail banking, mobile technology, and artificial intelligence, to name a few.
FinTech leads to cost savings
Any discussion regarding financial technology may seem highly technical and irrelevant to businesses or service providers but the application of FinTech has the potential to change the way businesses manage cash flows and day-to-day operations. FinTech has opened up a world of opportunities for better service delivery and in turn, price reduction for customers and better backend bottom lines.
To elaborate how FinTech can change the game for businesses, here are two ways FinTech solutions can be utilized to gain advantages by practically any organization.
To have a greater understanding of its applicability, the Financial Brand reports that mobile transactions are expected to grow by a massive 121 percent between 2017 and 2022 with physical branch visits expected to drop by 36 percent.
The bottom line is that FinTech opportunities should be maximized by businesses regardless of their operational size. In order to sustain and succeed in business, it’s critical that management embraces available technology and stay up to date for better operations.