With all the craze going on around the term Fintech, you would think that getting the hang of it will require no guidance at all. However, if you are still struggling to grasp the term, don’t worry; so is the rest of the world. Here are the answers to some of the most frequently asked questions about the matter.
What Is Fintech?
This is a term coined out of the words Financial Technology that denotes the practice of innovative tech getting involved in multiple aspects of the finance industry. It has changed its appearance drastically over the years, as bigger and better tech innovations arise and are incorporated into traditional banking, lending, insurance and similar finance sectors.
What Are Fintech’s Biggest Advantages & Challenges?
Fintech has been seen as a massive source of innovation and improvement of everyone’s experience in finances, and this is due to its advantageous nature. One aspect where this is most evident is with mobile devices. Mobile payments have greatly changed the way the public views this modern gadget, and all its potential. Namely, by 2020, 90% of smartphone users will have made a mobile payment.
New business models are also considered to be a great opportunity for the Fintech concept, even though existing financial sectors have been just as eager to fit into the concept.
Challenges are just as likely to arise from this concept and all its leading establishments. One key issue is the lack of proper regulations among the governments of the world, since not everyone was able to get in contact with the concept within the same time frame.
Getting the proper funding for their projects, tests, and analyses is another issue that could pose a threat to Fintech. Some add cyber security to this list of challenges, although most of the Fintech entities claim to reach and surpass most security standards, and are constantly working towards newer security solutions.
All in all, Fintech doesn’t seem to be going anywhere anytime soon, despite said challenges and disadvantages. While there are differences in its adoption rates across different countries worldwide, stats continue to show growth and development.