What is Fintech? In the words of Maxim Bederov – a successful financial entrepreneur, finance professor and IT specialist, Fintech is an innovative technology, used by different companies, businesses and enterprises to automate, streamline and improve financial services and operations. Earlier, the term fintech was used for the back-end operations of any financial firm. However, in recent times, fintech is used to define services that are more customer-oriented.
Fintech itself is a broad term, which refers to different ways of financial transactions. It could be through plastic money, cryptocurrency, bookkeeping, etc. Fintech uses a software that can be run on computers and even on smartphones. This allows people to deal their financial operations and transactions anywhere and anytime. Thanks to boom in fintech, you can now view bank account, transfer funds, withdraw money, etc. in blink of an eye.
Why Invest in Fintech?
Maxim Bederov emphasis that it has become of utmost importance to invest in fintech because it helps grow and develop interactions between two industries, companies and even countries. It creates access for financial services for all. People with little knowledge of finance may not understand the importance of fintech while enjoying all its perks at the same. Having said this, fintech has really developed and facilitated the trade and risk management systems, improving data analysis and processing and developing research tools for financial professionals.
Here we have listed down benefits of fintech and why it is so important in today’s growing world:
Fintech bring innovativeness to the financial sector.Financial professionals get to enjoy unconventional solutions for their financial problems. Furthermore, these solutions are specific and can be used for similar issues as well.Fintech companies are not only technology innovators but also engage advanced business models.
2. Customer Oriented
Earlier, financial systems didn’t have proper framework. It did not bring convenience to the end user, making the entire experience troublesome. Fintech solutions are customer centric and revolve around creating a better experience for the end user by offering cutting-edge innovative solutions.
The basic purpose of fintech is to provide ease and convenience to the customers. The maximum amount of focus is on the customers and resolving their issues. Easy to use and simple products are developed with the combination of advanced technology and better business models. When the financial solutions are simple, it attracts more customers and ensures their satisfaction level.
4. Easy Laws for Fintech Solutions
Fintech innovators can enter the industry without being scanned under strict laws and legislations. Although start-ups do require a proper license, and the purpose of financial solutions is to provide safety and security for funds and assets, but the laws for fintech innovators are relatively easier and do not require any strict procedure.
Importance of Fintech
Fintech is very important, especially for small business owners and startups. Sometimes, beginners and small business owners are unable to get anything from the financial service providers due to their high cost of providing financial services. In such scenario, fintech comes to the rescue for small businesses. With the support of fintech, small businesses can now increase their customer base, offer innovative financial solutions and achieve their business goals.
Below are the different services fintech offers to small business owners.
1. Maintenance of Accounts
Monitoring accounts, expenses, and invoices is a tedious task but with support of fintech it becomes much easier. You can now download apps which provide simple solutions to maintain your accounts. The customer interface is also very intuitive and simple. You can easily get along these apps as they do not require business owners to be tech-savvy.
2. Provides Financial Assistance
Fintech offers great financial assistance to small business owners. For example, car rental companies can now receive rent payment, accept credit cards, give lease and car loan and attract car renters online. These days, businesses don’t need to spend hefty amount of getting financial assistance and services. Now, business owners have awareness about financial assistance, thanks to fintech, and can make informed decisions for the betterment of their businesses.
Crowdfunding also comes under the header of fintech. Small businesses, finance professionals and others can now get financing for their new projects or new businesses through crowdfunding. Fundraising and getting loans from others has become much easier.
Fintech has a significant effect on finance professionals and others. Maxim Bederov believes that fintech is here to take financial sector to another level. Advanced digital solutions to modernize financial transactions and operations will lead to improved customer experience and easy solutions. Everyone get to benefit from it.
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