As with technology generally, financial technology (FinTech) is revolutionizing businesses and making it easier for them to manage their money and accept payments from anywhere in the world. It is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance. Today, Smartphones are best known for internet browsing, data surfing as well as for mobile banking and other financial work. Now, you can send or receive money from one corner of the world to another within quick seconds with the help of financial applications. Each financial technology company provides easy to use interface to the general public along with enhanced advanced security in order to keep trust forever. In addition, they like to promote their apps along with websites with the help of different digital marketing techniques so that they can reach to maximum peoples. They also like to maintain surveys from the general public so that they can improve and develop their services.
Here are some examples of the sort of FinTech that’s playing a part in global business and commerce:
The days of dusty ledgers and filling in mountains of forms is becoming a thing of the past.
Modern financial software to produce important paperwork including salary reporting forms, handle routine finance administration such as payroll, and record key financial information used in analysis and cashflow projections, is revolutionizing large and small businesses alike.
Calculators producing reams of paper print-outs and even the compact desk type are fast becoming the stuff of history too, as more businesses adopt software-based financial admin and accounting methods.
POS is an important component of retail selling, and thanks to advances in connectivity it’s possible to provide a full, electronic POS facility even in remote areas such as the middle of a field.
Along with making retail transactions quick thanks to swift card payments, many POS systems are linked to stock so that inventories automatically update as products are sold. Information such as what’s selling, where and by whom is easily obtainable from POS records, and makes for efficient stock control and marketing analysis.
Hardware such as Square takes this flexibility a stage further, enabling a credit card swiper to be connected to a smartphone to make remote sales even easier.
Some business owners requiring funding are turning to peer-to-peer and other online lenders to overcome the limitations of using a traditional bank.
While banks tend to have their specific boundaries and often ask that prospective borrowers physically visit them, online lenders allow loans to be arranged purely via their website and are often flexible in how they fund a business.
This can be invaluable when, for example, a business requires some quick funds to restock if there’s been an unexpected surge in sales or to respond to demand such as buying automating machinery to swiftly scale up production. Peer-to-peer lending helps a business be more flexible.
Companies such as Kabbage and OnDeck can provide online loans and have funded businesses to the tune of $550 million and $1.7 billion respectively.
Kreditech – a German-based lender – is another example. They use constantly altering algorithms to assess loan applicants within a matter of seconds, allowing them to use the latest information to assess new applicants and existing customers returning for more funding.
It’s a sign that time-honored credit scoring is possibly on the way out.
All businesses conducting business online need a platform to take payment, but some merchant accounts would be too costly for smaller players.
Paypal Inc. is one of the best American company operating worldwide online payments system. They also serve as an electronic alternative to the traditional paper methods like cheques and money orders. You can easily set up your Individual account or either business account which provides you more additional benefits. It works for online vendors, auction sites, and many other commercial users as well as you can transfer money to friends or some sort of charity (donation) through this payment network. The applicable charge is 4.95% per transaction and the designed interface is very easy to handle which lets you to transfer money in quick seconds without any hesitation with the help of your secured background credit or debit cards. You can also link your bank accounts with it for your received money withdrawal. Along with it, Skrill, Payoneer, Alertpay are also best payment processing systems. Along with PayPal, other platforms such as Stripe make online payments easy and secure.
Perhaps one of the cleverest forms of FinTech – and a prime example of how accelerating technology is being harnessed to create a new service – is that provided by BehavioSec.
It alerts businesses if there’s any suspicious activity, such as unauthorized use of their computers, tablets, and smartphones, by measuring behavioral characteristics. The way people use computer trackpads, gestures, swiping screens and how they type are as unique as their fingerprints, so can be isolated from those entitled to use a given piece of tech.
Virtual wallets such as Skrill that allow users to pay online without giving out credit card details, and others such as CoinBase that can be used to store and pay for items with Bitcoin and other cryptocurrencies (they can be used to pay for a multitude of items now), are becoming commonplace.