Fintech is taking over the world! Globally, it is a billion-dollar industry that is disrupting global businesses. It goes beyond banking and extends across a variety of industries. In this article, we’ll talk about the many ways this fast-growing technology is shaping today’s businesses.
1. Non-Financial Businesses Offer Financial Products
Gone are the days when financial products were exclusive to the finance sector, such as banks. With fintech, other industries are incorporating financial products into their business model. Amazon and Shopify, for instance, are now lenders to their suppliers. Many businesses are tapping into innovative ways to become financial intermediaries. Fintech is one of the key product drivers in many companies.
2. Making the Most out of Data
Because of fintech, we are living in an age of enhanced data utilization. Businesses are using customer data to improve their businesses. Through lifestyle and demographic data, among other data categories, businesses can gain more valuable insights about their customers and consequently, they are using this to improve their services and become more competitive.
3. Offering a New Way to Accept Payments
Fintech also gave rise to new modes of payments. Credit and debit cards are still the preferred modes of payments, and in some countries, cash is still a staple. However, because of fintech, there are more advanced ways for many businesses to accept payments. For instance, QR codes can now be used to settle payments with the help of mobile phones that are used as scanners. Cryptocurrency, such as Bitcoin, is also gaining popularity. If you own a business and you would like to uncover the many ways to offer new payment methods, you can do this if you learn fintech online.
4. Making Financial Services More Accessible
People with disabilities have limited access to financial services, including banks. In a report from The Guardian, the author notes that disability is one of the most common barriers to financial inclusion. Many ATMs are now equipped with an audio function so that visually impaired customers can use the machines without any problem.
5. Investments are Flowing
If you have a business and you are looking for the best ways to diversify your portfolio, one of the best things to do is to invest money in fintech. In 2018, fintech companies raised approximately $40 billion from venture capitalists. There is no sign that this trend is slowing anytime soon.
6. Growth of Artificial Intelligence
The popularity of fintech is also paving way for the rise of artificial intelligence. For instance, it is common for banks to use AI to automate processes and evaluate loan applications. Through its automation benefits, businesses can streamline processes, and in the long run, save money with the help of AI.
In sum, fintech is a huge trend across many business sectors. Its applications go way beyond banks. From offering new payment methods to the use of artificial intelligence, there are many ways your business can use fintech to deliver better services, improve customer experience, and boost profitability, among other benefits.