Benefits of financial technology7322428
The opportunities brought through the new technological era have changed the way in which businesses work, services and products are perceived, and exactly how consumers get involved in this technique.
Financial technology, also called FinTech, is which makes this transformation easier and smoother. The dramatic impacts of FinTech and it’s potential to give full swing to a different era of competition, innovation and productivity within the economy is unlimited with this context, and worth being encouraged.
When talking about FinTech, one should realize that will it be not merely about digitising money, but more about monetising data. Put simply, FinTech is approximately the way you create and understand the value add from data which was previously limited through the technology available in past.
Today, businesses use a well-structured use of almost unlimited data, particularly with the development and interest in social websites that sophisticated algorithms of which are able interrogate in a short time and be new services and products.
The chance of FinTech solutions offers an impressive quantity of advantages to all business, especially new and existing small companies. Small and medium-sized enterprises play an important role for economic growth and jobs, but a few of them can find it difficult to secure the financing required to enable them to survive and grow.
In addition, the FinTech solutions are efficient at lower scale, thus providing small enterprises with increased usage of far more funding options. Modern FinTech products might be better suited to the needs of small enterprises. And here we speak about marketplace lending, invoice finance, e commerce finance, online trade finance and web-based supply chain finance.
Besides getting financing and access to capital, fintech explained will also help all kinds of businesses via modernised payments systems, customer relationship management and invoicing, plus much more.
It is additionally 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.
Exactly the same way the internet has empowered people worldwide through use of unlimited information, FinTech offers more balanced information in the industry and helps to reduce risk and achieve more efficient allocation of scarce resources.
FinTech could also improve the traditional financial services and promote disruption through the help of innovative products and services. This can offer advantages to consumers and also other sectors of the economy.
If you need more information on Fintech Fixes & Fortunes, see what Dan Rosen, General Partner, Commerce Ventures, explains on the topic.
