Intro
At present, there are various banks where customers have to be harassed while taking various banking services. Especially when you go to get a loan from the bank, you will have to give a bag of papers as proof and you will be harassed so much that at some point you will think that there is no need to take the loan. Then the bank will give you a loan. In other words, various mortgages or other loans have to face a lot of problems in traditional banking systems. Moreover, it takes time to get other banking services. In all these areas fintech plays an important role and makes banking services easier. You can even get a hassle-free mortgage or other loan through the use of fintech when banks are integrated with it.
Fintech:
FinTech is an acronym for Financial Technology. Fintech plays a very important role in making P-to-P transactions, check deposits, money transactions, bill payments, wealth management, crowd funding, etc. easier, so it has received a huge response in the present time. We all know that various digital currencies (Cryptocurrencies) have been introduced as an alternative to fiat money. Like Bitcoin, Facebook recommended Libra etc. These are also examples of fintech. The emergence of startups around the world dedicated to providing fintech services has been remarkable in the past few years. In particular, Printec completes P2P transactions without the hassle of middlemen and also provides various mortgages or other loans to customers without hassles. Also fintech provides hassle free check deposit, money transaction, bill payment, wealth management, crowd funding etc. activities so it has gained popularity day by day.
Future in the banking sector:
It is impossible to say exactly what kind of impact fintech startups can have on the banking sector in the future. Because it could be, contraction of banking services. Because fintech institutions are able to provide banking services with much lower cost and efficiency. And there are many small fintech companies that provide these facilities. One of the goals of fintech is to reduce the cost of financial services to improve consumer welfare. Fintech platforms are not burdened with many additional costs like regulatory costs, branch establishment costs like banking institutions. It offers transaction completion with a small fee. Moreover, they use information technology which we usually see less in banks. For which these companies provide additional benefits compared to banks in transaction costs.
Also, one of the advantages of fintech is that it completes transactions instantly anywhere in the world 24 hours a day. That's why the transaction fee is much lower than the banks. Moreover, where banks take a lot of time in international transactions, fintech completes international transactions in a short time. Some of its other benefits are that it can diversify the portfolio. It can also use artificial intelligence to make decisions by reorganizing information through machine learning, which is largely impossible with human intelligence. Which we don't see in traditional banking system. Fintech can increase access to information by providing loans using mathematical terminology or algorithms and thus eliminate bias. For example, from reviewing social media information of loan applicants to easily analyzing the quality of their business. On the other hand, banks usually give loans to the rich more easily than in the villages and to the poor than the poor, and moreover, this loan process is time-consuming and troublesome.
Conclusion:
Everyone wants to enjoy the benefits in a short period of time. Where there will be no hassle and less time spent and less money spent. Today they are facilitated by fintech. If it is included with the banking sector, the banking sector will be able to provide those benefits to the customers and all the bank officers and employees will be freed from the troublesome work. As technology is improving, people will run towards technology. Whereas international transactions i.e. transactions anywhere in the world take a lot of time and the amount of fees is high in the case of banks. In that case fintech can complete transactions anywhere in the world in less time and with lower fees. Besides, if banking services are integrated with fintech, customers can benefit from it. It is understood that if banks are not included in this then they will lose popularity in future.
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Very interesting information! Fintech has great prospects for development in the future. I also know a very good new company that is based on developing different banking software using Finamp solutions