The financial landscape is evolving quickly as a result of Fintech, often known as financial technology. Fintech is altering how individuals and businesses receive financial services, and the estimated value of the worldwide Fintech market in 2018 was $127.66 billion. This number is projected to increase by 24.8 percent annually to reach $309.98 billion by 2022.
Financial technology includes various technologies and services, from mobile payments and money transfers to digital currencies and online banking. Fintech companies often offer these services at a lower cost than traditional financial institutions, and they can also reach a wider audience thanks to the power of the internet. As a result, Fintech is having a profound impact on the financial sector, and, likely, this impact will only grow in the years to come.
Zil, a cloud-based online banking platform, is one example of how Fintech can shape the future of banking.
What Is Fintech?
The term “financial technology,” also referred to as “Fintech,” is used to refer to new technology that aims to enhance and automate the provision of financial services. At its foundation, Fintech uses specialized software and algorithms that are employed on computers and, increasingly, smartphones to assist businesses, business owners, and individuals in better managing their financial operations, business activities, and lives.
Fintech currently refers to a range of financial activities typically performed without a person’s help, such as money transfers, checking your account balance on your smartphone, applying for loans without visiting a bank office, raising funds for a startup business, and managing investments. One-third of customers use two or more Fintech services, and these consumers are becoming more conscious of Fintech as a part of their daily life, as per EY’s 2017 Fintech Adoption Index.
Importance Of Fintech Companies
Financial institutions were forced to operate inside their comfort zones throughout the economic crisis, limiting their services. Customers wanted to innovate at the same time since the technology was driving them to manage their money and transactions more efficiently. In order to satisfy this requirement, numerous businesses began to provide alternative banking and payment alternatives. Their offerings improve clients’ access to their personal accounts and are in step with current developments.
According to the most recent data, more than 40 percent of companies are eager to try out services like sending money simply by using the recipient’s email address, making contactless card payments, or utilizing mobile banking through secured apps. To put it mildly, the response offered to Fintech companies is positive. But more than anything, Fintech is required because it gives customers—like those with bad credit or small startup businesses—a priceless opportunity that traditional banks would not. Fintech allows people to access financial services that they otherwise would be excluded from, and this is why it is so important. With Fintech, anyone can have a chance at achieving their financial goals.
Fintech And Banking
The banking sector is undergoing a change because of Fintech, or financial technology. Banks are using Fintech to automate back-end procedures, including keeping track of account activity and avoiding fraud. Additionally, they are utilizing it to create consumer-focused solutions, such as applications that enable you to monitor your account balance or make payments. Additionally, Fintech is being used by customers to access many bank services, such as receiving investment advice or making mobile payments. Everyone engaged enjoys a more effective, user-friendly banking experience as a result.
Zil, the cloud-based banking platform, is gaining huge popularity among business owners and freelancers as an effective way to conduct financial transactions. Through Zil, many business owners now realize that online banking is a much better option than traditional banking when you want your business to grow. With Zil, you can access your bank account anytime, anywhere. You can check your bank balance, pay your bills, manage payroll, send and receive ACH and wire payments, print checks, etc.
Fintech is having a profound impact on the financial sector. This impact will only grow in the years to come, as Fintech companies can offer lower-cost services and reach a wider audience thanks to the power of the internet. If you’re not already using Fintech services, now is the time to start. Zil is one such company that offers low-cost money transfers and other banking services. Sign up today and see how we can help you save money and access new markets.