Changing the Financial World with Fintech
Most people have heard of a new financial product without really being aware they were skirting the edges of an explosive new avenue in the field of technology. Fintech, (financial technology) is changing the way consumers and institutions conduct their financial business.
Mobile banking and stock trading applications have put the finances of consumers right in their pockets. Virtual currencies like bitcoin have changed the way people think about their dollars and cents, along with the digital wallets offered by Google and Apple. Companies like PayPal offer consumers an additional way to easily conduct a financial transaction that could have never occurred even a couple of decades ago. Fintech has also changed the way people think about the area of lending as well. Peer-to-peer lending sites such as Lending Club and Prosper offer an entirely new way for a borrower to obtain personal loans and a new way for investors to receive a return on their money.
Of course, along with new tools come concerns regarding security, particularly when finances are involved. Although peer-to-peer lending clubs sound like an attractive investment, they can disappoint if a borrower decides to default on their loan. Transactions made through PayPal have occasionally gone sour from less than reputable buyers on sites such as eBay. Some consumers may have a difficult time keeping access to sensitive financial data on their mobile phone with only a few passwords in between their financial data and a phone thief. Consumers have a major part to play with regard to their financial security. Using strong passwords, thoroughly researching loans before investing and knowing the tactics of unsavory buyers or sellers on sites like eBay or Craigslist can go a long way to ensuring the safety of financial transactions. Of course, tech companies are also working hard to refine the security safeguards critical to ensuring continued use of their products.
It''s hard to predict which Fintech startups will turn into long-term players in the financial world. Google and Apple are trusted names and most likely will do well with any Fintech products they create. Lending Club is still fairly prosperous and Betterment, a site that provides automated investing services is also holding its own. TransferWise, a London-based company offering a platform for foreign exchange, is expanding its market into the U.S.
It''s exciting to see creativity and innovation expanding to even higher levels with the further refinement of technology tools and concepts. The growth and expansion to be found in the world of technology seems to have no limits. For more information on the future of Fintech, please contact us.