Fintech is an all-encompassing term used to refer to technology in the financial services sector.
Technology has long been a part of the financial services industry, but only recently has the term fintech emerged to cover all of the developments within the space.
So that we can get a better understanding of fintech, let’s take a look below at how it is already looking to increase the growth of financial markets globally.
What is Fintech?
Fintech used to refer to the technology which was used primarily to run traditional financial services organizations. However, the term is now more recently applied to any disruptive technology, used to enhance and upgrade customer experiences along with usual banking process requirements.
During the last decade, investment by financial institutes significantly rose from $1.89 billion in 2010 to $27 billion in 2017, with an increase in such spending set to continue growing. The share of this growth is currently centered around African and Asia Pacific markets.
So how is the use of many different types of new disruptive technologies assisting traditional banking organizations along with the emergence of its all-new ‘digital’ contemporaries?
Improve decision-making
This is one area in which fintech can help businesses immensely, particularly with the increased availability of AI technologies. Businesses can now reap the huge benefits of AI-powered and new kinds of improved data analysis to help them create new strategies. By using these new, innovative tools, financial businesses and other banking organizations can make better-informed decisions about internal strategies, such as process and marketing and equally importantly, how best to target their existing and potential client base.
Transparency
Some experts tell us, one of the major benefits of fintech, specifically in regards to blockchain and AI fintech, is the increased transparency for internal data processes and also for customers. Fintech projects create auditable money trails and can help identify any fraudulent activity, with more speed and accuracy than any human.
So how can these disruptive technologies assist customers? Let’s take a look below at how the emergence of new innovative technologies is set to assist consumers requiring loan facilities.
“Fintech projects create auditable money trails and can help identify any fraudulent activity, with more speed and accuracy than any human.”
Lending
Lending technology has also developed rapidly within the fintech arena, and offers businesses and consumers more opportunities to borrow than was previously possible.
Lending and loan software improvements have also impacted traditional lending institutions by providing the tools to automate processes which can significantly save time and money by reducing the need to undertake unnecessarily redundant tasks.
Let’s take a final look below at how Fintech and new innovative disruptive technologies are poised to make an incredible change to the banking industry as we know it.
Finally…
According to industry business knowledge, the next few years look to be increasingly important for the fintech industry.
Advances in artificial intelligence, the way banking institutes handle data, along with increases in analytics technology looks set to drive more innovation in the global world of finance.
“Advances in artificial intelligence, the way banking institutes handle data, along with increases in analytics technology looks set to drive more innovation in the global world of finance”.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.
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