Many entrepreneurs believe that the word ‘FinTech’ is being overused in the financial sector. For the uninitiated, it stands for Financial Technology, simply called fintech or FinTech. Fintech is obviously important, because it redefines how people use financial services and has changed the way businesses operate in this sector. Here are some quick facts worth knowing.

Why is fintech important?

We live in the age of internet, and more than 50% population of the world has access to web-based resources and services. Fintech is important for two major reasons. Firstly, it allows businesses and financial services to rethink automation and the use of technology, and secondly, it makes the financial sector much more accessible for the masses. Experts like Nadeem Shaikh believe that the application of this will not be limited to the backend anymore. Think of the ways technology and internet has changed the banking sector for instance. Initially, it was about core banking services, but with time, the approach has changed. In years to come, we will see more of consumer-oriented solutions, and the start is commendable.

What to expect in the future?

Financial advisors and tech experts think of fintech as a sector with limitless possibilities. From insurance and stocks to banking, every aspect is likely to evolve and change in the next decade. It will also impact how other sectors interact with financial services. More than being just backend oriented, fintech will change the way end-to-end services work, and a lot of it is already automated. From using software as a service (SAAS) options to software that are being tailored for the specific needs of a financial company, the choices and options are endless for brands.

Engaging customers and clients digitally with fintech

This is likely to be the first concern of all companies that are remotely linked or associated with the financial sector in years to be come. Gone are times when you could expect clients and people to come to your office. Today, you have to offer them digital engagement and ways to automate tasks, and artificial intelligence is already playing a big role in this regard. How people avail services and the way the engagement is retained are valid aspects that need introspection, and at the same time, compliance, data security, and keeping a check on cyber crimes will become relevant concerns.

Fintech is the future, and the sooner companies adapt to the new changes, the faster they can have tangible advantages.