You may have seen or heard of someone who makes money by trading on the internet. Alternatively, you may have noticed an advertisement for Expert option or another program that allows you to make money online but were unsure what was going on. The purpose of today's post is to provide a basic knowledge to FINTECH
WHAT EXACTLY IS FINTECH?
Financial Technology is abbreviated as FINTECH. So, what does Financial Technology entail? The solution is straightforward and can be derived from the word alone: "finance" and "technology." As a result, FINTECH refers to any firm that employs technology to enhance or automate financial services and operations. The term refers to a rapidly growing industry that provides a variety of services to both consumers and businesses. Fintech has an almost infinite amount of applications, ranging from mobile banking to insurance to cryptocurrency and investment apps.
You may not realize it, but you've already interacted with fintech. Perhaps you took a picture of your paycheck and uploaded it to your bank's mobile app, or you used Mint to figure out how much money you had set aside for entertainment each month, or you and a friend split the bill during dinner using Venmo. Later, you paid for a drink at a bar with your phone using Apple Pay. When it was time to return home, you hailed an Uber and paid for the ride using a stored credit card or even Bitcoin. Alternatively, in Uganda, you might have placed money on your safeboda app to settle a payment for products delivery or a trip, or transferred money using your phone using an app.
checked for your bank account details using an app. Basically, it refers to everything from cashless payments to crowd funding, robo financial advisers and virtual currency.
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You may not know it, but you and your friends have most likely interacted with fintech in some manner, with studies putting the worldwide adoption rate at two-thirds, according to Ernst & Young's 2019 Global FinTech Adoption Index. According to reports, three out of every four people have interacted with fintech in one way or another.
With an estimated 1.7 billion people in the world without bank accounts, fintech has filled the gap that existed when using the traditional system of having a bank account and making money transfers through the back, resulting in the emergence of emerging technology that many big companies invest heavily in, such as Apple pay, Chipper, Jumia, and the list goes on. So, in a nutshell, fintech streamlines the process by making it easy to manage your loan, transmit money, and pay payments using your phone.
It should come as no surprise that Fintech acceptance and use are fraught with dangers. This is mostly due to the fact that, unlike typical bank operations, fintech provides additional financial money lending services that do not include peer to peer lending and borrowing, which raises the risk of scams and defaulted loans. Consider Kenya and Uganda, which offer M-pesa and mobile money systems in which telephone companies lend money to consumers with no guarantee of repayment. Most debtors default on their loans, and others choose to alter their phone numbers in order to avoid paying the debt. Another danger is the loss of data privacy. as more financial services become available When individuals go cashless and pay with Apple Pay or Venmo, cybercrime increases significantly. During the Covid-19 epidemic, a significant spike in cybercrime-related incidents was recorded when numerous people went cashless and paid with Apple Pay or Venmo. As a result, fintech firms have made investments to improve their consumers' data privacy.
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DO I ACTUALLY REQUIRE FINTECH?
I too had this same question up until I read and understood what fintech really is. If you have If you've read thus far, you should at least have a basic understanding of what it is and what it includes. You should also be aware that you are already utilizing fintech in some manner in your daily life. Fintech has progressed and changed throughout the years. Fintech enables activities that used to take days, weeks, or even months to complete, such as obtaining a credit report or making an international money transfer. Platforms like Upstart and TransferWise can accomplish these tasks in a fraction of the time it would have taken even five years ago. Fintech has been advocated as a means to speed up procedures that were traditionally time-consuming, such as the distribution of economic stimulus money.
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Fintech has the potential to promote financial inclusion in some regions of the world, where governmental or institutional backing of the unbanked is absent.
In a nutshell, yes, you need fintech for the fact that you may not be able to avoid its usage and that it has substantially improved the floor of money and services a cross the globe with Kenya reporting a 2% reduction of poverty due to the use of Fintech like M-pesa. Noticeably, the eminent adoption of Bitcoin as legal tender in El-Salvador indicates the progessive nature of the subject.