Benefits of financial technology1297111
The opportunities brought through the new technological era have changed the way businesses work, products are perceived, and how consumers take part in this process.
Financial technology, also called FinTech, is making this transformation easier and smoother. The dramatic impacts of FinTech and it’s possibility to give full swing to an alternative era of competition, innovation and productivity within the economy is unlimited in this context, and worth being encouraged.
When talking about FinTech, you should realize that is it not only about digitising money, but more about monetising data. Quite simply, FinTech is around the way you create and understand the value add from data that had been previously limited through the technology obtainable in past.
Today, businesses possess a well-structured access to almost unlimited data, particularly with the development and popularity of social networking that sophisticated algorithms that are able interrogate quickly and grow new products and services.
The chance of FinTech solutions has an impressive volume of good things about all business, especially new and existing small companies. Small and mid-sized enterprises play an important role for economic growth and jobs, but a number of them can struggle to secure the financing required so they can survive and grow.
Moreover, the FinTech solutions are efficient at lower scale, thus providing smaller businesses with additional usage of considerably more funding options. Modern FinTech products could be more appropriate to the needs of small enterprises. And here we speak about marketplace lending, invoice finance, e commerce finance, online trade finance and internet based supply chain finance.
Besides getting financing and access to capital, fintech explained can also help all kinds of businesses via modernised payments systems, customer relationship management and invoicing, and a lot more.
It is also worth mentioning that FinTech is allowing customers to manage and control their transactions through their smartphones or tablets, therefore improving productivity and effectiveness as well as the customer experience.
The same way the net has empowered people all over the world through use of unlimited information, FinTech provides more balanced information in the marketplace and minimizes risk and achieve more efficient allocation of scarce resources.
FinTech may also enhance the traditional financial services and promote disruption through the help of innovative products and services. This may offer benefits to consumers and other sectors in the economy.
Should you need more details on Fintech Fixes & Fortunes, see what Dan Rosen, General Partner, Commerce Ventures, explains on the topic.
