What is FinTech? Indeed many of us have been wondering what does this term mean. It is a term that we lately hear very often. FinTech stands for Financial Technology and you can most probably guess, it has to do with applying technology on the financial sector.
Instead of directly explaining what FinTech is, we first need to discuss how the financial/banking sector evolved in the last decades with the use of technology.
FinTech has actually been around for over than 50 years. In the last 50 years, we saw many technological innovations in the Banking industry and the general financial sector. Things which today we might take for granted, were huge technological advances some decades back. Examples of such technological advances are credit cards and ATMs, more sophisticated real-time core banking systems, and eventually, in the last two decades, the internet and consequently internet banking.
So, today, financial institutions offer sophisticated internet-based portals for their customers, which can be used on a 24/7 basis and allow them to do just about anything. In addition to that, they also offer smart phone apps which are pretty much an extension to their Internet banking solutions.
However, in the last few years, something new has emerged in the FinTech scene and this is a a game-changing thing. It is something that changes the “traditional” methods of financial transactions. The keyword is integration or even better, interconnection. Not integration within a single financial institution, but integration across many financial institutions, regulated by authorities and with the use of:
- Open APIs and Open Banking
- Internet and mobile Internet
- Smart Mobile Devices
- Machine Learning
- Artificial Intelligence
- Data Analytics
- Digital Transformation
- and more…
All the above, and even more, make FinTech a hot topic again.
The game is changing.
Are you ready to adapt?
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Reference: TechHowTos.com (https://www.techhowtos.com)