Financial technology has been clawing its way up ever since globalization became inevitable. Financial technology is bringing closer together and making the entire financial transaction process seamless.
As opposed to popular belief, the evolution of fintech did not happen in a single era. It is believed that fintech’s first era was when the US had the first transatlantic cable that facilitated electronic wire transfer in 1886.
The second stage of the fintech revolution was kickstarted by the installation of the first ATM in Barclays in 1967. Over the next few years, the emergence and introduction of online banking systems started shaping the future of financial technologies. When PayPal was launched in 1998, it kick-started the new era for payment systems.
The next stage of financial technology advancements came after the great financial crisis in 2008. The entry of bitcoin, the emergence of blockchain all paved the way for innovation in the fintech industry.
Now in the age of mobile apps here is how fintech has been growing in the digital age.
- Fintech is cutting down travel
Paytm did not bring anything new to the table. It simplified the entire bill payment system and took the industry by storm. Before the online payments system were here, everyone used to visit the small shops for mobile recharge and now it is just a click away.
It involved travel and if you are unable to travel you had to depend on someone else to do it for you. In the case of electricity bills or insurance premiums, consumers had to visit the office physically, stand in a long line and get it done.
Fast forward to a world where Paytm and other digital payment are ruling the financial technology industry. We can pay all of our bills in a single click without getting out of bed.
- Multiple reward programs
Google Pay provides scratch cards with coupon codes or cashback, Paytm provides Paytm First Points, cashback and even discount vouchers for payments like mobile recharge, electricity bill payments, etc….
- The all-important payment gateways
When the e-commerce boom started in India, the need for financial technologies in the form of payment gateways also skyrocketed. Though the e-commerce giants introduced cash-on-delivery to woo Indian consumers and grab a market share, the ability to pay while purchasing was paramount.
Apart from just paying, the companies had the responsibility to keep their customer’s payment details confidential. This required huge technological support and fintech companies came up with appropriate solutions to keep the payments secure and reliable.
- Crowdfunding platforms
Crowdfunding platforms are a testimonial to the role of financial technology and its positive impact in the digital age. A lot of businesses are off the ground only because of crowdfunding platforms.
With the help of crowdfunding financial technology, even an ordinary citizen could invest even 100 bucks in a business that they believe in. Even first-time movie producers are turning towards crowdfunding platforms to start a movie.
- Blockchain and Cryptocurrencies
The financial technology industry is an ever-evolving one. As the digital adaptation picks up, financial technology will also evolve along with it.
Blockchain and Cryptocurrencies are the new kids on the block. Needless to say, Cryptocurrencies such as Bitcoin and Dogecoin have created millionaires within a span of days. On the darker side, a lot more people have lost their life savings on it.
Photo by Roger Brown from Pexels
Once this wave reaches the masses, there is no doubt that governments will start investing in their own digital currency. The Chinese government has already started to develop their own central digital currency since almost 90% of its citizen’s daily transactions happen through QR code.
Though blockchain is not exactly a financial technology, they are an integral part of maintaining order in the world of digital currencies just because of power decentralisation.
- Getting loans is just a click away
Long gone are the days where you will have to carry your documents and visit every bank in person to secure a loan. All you need to do nowadays is can all your documents, upload them and wait for your loan to get approved!
Financial technology or fintech has transformed our lives forever ad we can never go back to the olden days without fintech. Yes, fintech is a double-edged sword. Though we have gained much with fintech, we have lost millions in cyber fraud and even lives have been ruptured. Even with the strings attached, fintech has been a boon for the world and the ease of doing transactions is a raging hit across the globe.
We at NautOne believe that if done right, financial technology can be much more secure and accessible to both businesses and consumers.
You can get in touch with us by calling us on +91 8072696474 or by mailing us at firstname.lastname@example.org.