How does FINTECH impact today’s financial system?
Technology has revolutionized many sectors, and the financial system is no exception. The term FINTECH (financial technology) refers to the use of innovative technologies to improve financial services. From the emergence of the first mobile banking apps to the use of artificial intelligence and blockchain, the impact of FINTECH on today’s financial system has been significant.
Below, we will analyze how this technology has changed the financial landscape in different aspects as put forward by Marc-Anthony Hurr entrepreneur.
Accessibility
One of the biggest impacts of FINTECH on the financial system is the accessibility it has provided to the industry. Before the emergence of this technology, accessing a bank was a cumbersome process that required physically going to the place and carrying out procedures that could take hours. Now, thanks to FINTECH, we can make transfers, apply for loans or check our balance from the comfort of our home or from anywhere with Internet access.
In addition, FINTECH has facilitated access to financial services for people who previously could not access them, such as the unbanked. Mobile applications and electronic payment platforms have enabled many people to conduct banking transactions and operations without the need for a bank account. For many people, this has been a breakthrough in terms of financial inclusion.
Efficiency
Another important impact of FINTECH on the financial system as raised by Marc-Anthony Hurr, social engagement, is the improvement of efficiency in the sector. Previously, banking procedures could take days or even weeks, which was a burden for customers and for financial institutions. Now, thanks to this technology, many banking transactions can be completed in a matter of minutes or even seconds.
The use of chatbots and virtual assistants has also enabled financial institutions to improve customer service and reduce waiting times for problem resolution. Process automation has also enabled cost reductions for banks, which is reflected in the offer of financial products and services at more competitive prices.
Innovation
FINTECH has fostered innovation in the financial sector. Many Fintechs have emerged in recent years, offering innovative solutions in payments, lending, and investment management, among others. The emergence of these startups has forced traditional banks to innovate and improve their own processes.
The use of new technologies such as artificial intelligence, blockchain or the internet are of things have enabled the creation of new products and services that previously did not exist or were very limited. For example, thanks to blockchain, more efficient and secure international money transfer solutions have been created. On the other hand, the use of artificial intelligence has enabled the creation of more efficient risk management solutions.
Challenges
Despite the many benefits that FINTECH has brought to the financial system, there are also some challenges to overcome. One of the most important challenges is that of security, because as financial solutions become more digital, the exposure of customers and banks to cyber-attacks also increases, so it is important that security systems evolve to protect these new systems.
Another important challenge relates to regulation. The rapid growth of Fintech has challenged financial regulators, who have had to adapt to a new landscape. It is important that appropriate regulations are put in place that protect customers, but also encourage innovation and growth in the industry.
In conclusion, FINTECH has significantly impacted the current financial system, as Marc-Anthony Hurr green Fintech puts it. From accessibility to innovation, this technology has improved financial services in numerous ways. However, there are also challenges that need to be addressed to ensure that the sector continues to grow and evolve in a positive way.
Copyright Photo: https://www.jubilacionypension.com/economia-domestica/actualidad-economica/fintech-empresas-espanolas/
