Published On: Tue, Dec 19th, 2017

Financial Technology (Fintech): A Game Changer

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Fintech

What is Fintech?

Fintech is the latest trend of 21st Century that has urged financial systems to make a transition toward more advance and innovative sources compared to conventional means of discharging services.

To ensure greater access to people, the use of mobile phones for the delivery of financial services is one example of Fintech, influx.

To enhance and improve financial services with the help of technology is the aim behind financial technology or Fintech. It is whole new industry producing contemporary and technologically sound product, processes, application and business paradigms. Accessible via internet to uplift the standard of financial institutions.

Financial technology has witnessed enormous growth over the years since 2008 crisis. And today, around 40% of workforce in London is linked with Fintech services, According to mayor of London. The core areas where Fintech has been incorporated in full swing are, insurance services, trading services and risk management.

‘Fintech’ Applications

Not merely just technology but other areas pertaining to financial sector are also part of this evolution. Including crypto-currencies, Retail banking, Financial Awareness i.e. Education. It has caused a disruption to previously used approaches. As now it is leading toward automation compared to previously heavy workforce oriented services.

In this context, financial decision would be based on thoroughly identified and analyzed client’s preferences. It will involve modern means of assessment for e.g. artificial Intelligence, analysis of behavior with prediction, data oriented market research. The decisions based on client’s behavioral tendencies will make services more efficient. And would also help clients to better understand their, spending and savings.

Fintech has seen major breakthrough’s since it has widespread benefits for whole financial segment. Start-ups have received staggering funds and today North America leads the Fintech start-ups with Asia following. Main areas of Fintech innovations include: crypto-currency, blockchain technology, smart contracts, open banking, Insurtech, Regtech, Robotech, Unbanked or Underbanked and Cybersecurity.

Fintech is usually preferred by banks for their, inter and intra bank services. It also adds value to small business services and ultimately a potential for customers. The give access of information to all the stakeholders with advance analysis and comprehensive services encompassing all needs and requirements is the demand.

‘Fintech’ prospects in Pakistan

In Pakistan, we have also felt the necessity of Fintech. It will help us in catering burgeoning cost and also, the health of business to large extent will be positively influenced. Here customer interaction platforms have been developed by means of technology. Banks are much concerned about this and have positions related to innovations and digital initiatives. They are subject to design, execute and coup up with the Fintech services. Large numbers of merchants are offering their services online and transactions worth Rs 9.4 billion is being observed on e-commerce.

State bank of Pakistan has also shared some details regarding the internet banking. According to their reports, twenty five financial service providers are working with internet and mobile app based services.

HBL has also introduced biometric mobile app to buffer the concerns of its clients, as a threat from spams, hacking, and date misuse.

A startup has also identified the key area of tech advisors, who will inform regarding the availability of ATM to clients around their location and also the discounts allowed.

In Pakistan the essentials of Fintech has been admired widely and financial institutions are earnestly pursuing it. Now, letter of credit will also be given access via internet and long hour waits would be over.

Bank Islami also has introduced biometrics and due to rising demand of sharia compliance modes of finance this will attract large pool with its ease of access. M-wallets were also launched for microfinance lending but so far has maximum limit of Rs 50,000.

Startups are working to bring forward technologically rich financial instruments and mechanisms but it should be worked upon with focus and better understanding to meet the need analyzed, adequately.

 

About the Author

- Business Graduate, Blogger Enthusiast, Article writing and Research.