The fintech have emerged as a very strong and one of the powerful industries in the financial market. In the past one year, the whole financial system of the country has been shook with the innovations introduced by the financial technology.
The fintech industry is growing at an exponential rate and the country has experienced a vast hike in the number of the business start ups involving the fintech. The investment in the fintech industry has been raised by 45% each year and so on the investment capital is growing day by day.
The fintech industry has played a major role in refining the financial system and banking infrastructure in the past couple of years. The fintech is responsible for the major changes and optimizations that have been made in the past years in the financial system of country.
Here are some of the major sections of the financial system that have seen the impacts of the introduction of the newly launched fintech business ventures –
- Loans system: The lending and borrowing of the money have never been so easy before the involvement of the fintech innovations. The interest margins have been squeezed and the lenders and savers could now enjoy the benefits of the fintech innovations.
- The revolutionized mode of payments: The blockchain technology and the bitcoins have made the greatest revolution in the financial system all over the world. The fintech technology of the blockchain and the bitcoin is yet to be introduced in our country. But these technologies have made the mode of payments robust and secured.
- The investment banking has also witnessed some important changes: The lending of the money and the payment methods are getting relied on the financial technology, and so are the investments. The investment sector has seen a change which is clearly the impact of the fintech industry. Crowdfunding is one of such changes. The investments are made by the technology through online mode into the common ventures by either lending money or purchasing equity of their company.
- The replacement of the conventional methods by the latest financial technology: All of the traditional and conventional methods of managing and operating the financial system have been now replaced with the technology. These financial technology have optimized the working of the banking and financial system in ways that were never imagined a decade ago.
- The introduction of the fintech has introduced competition in the financial system: Though there may not have been a lot of big players in the financial system of our country, but the offers and competition has increased up to great heights because of the fintech. The financial institutions are now getting client oriented and thus the competition to attain the attention of the customers and clients is increasing.
- The future of the financial system of the country is yet to face major changes: The beginning of the fintech has revolutionized the financial system, but there are much more to innovate and implement.