The intersection of financial services and digital technology is rapidly transforming the industry. Whether you’re looking to advance your career in a traditional financial institution or start your own fintech business, an understanding of modern tools and trends is essential.
Finance professionals who work in banking, credit unions, investment firms and insurance agencies should understand how fintech works. The technology impacts nearly every aspect of the industry from fraud monitoring to accounting processes and customer-facing activities like personal loans, mortgages and savings accounts. It also impacts the way we learn about personal finance and the complexities of the financial market.
In the beginning, fintech companies focused on behind-the-scenes processes at monetary institutions but have since expanded into consumer-facing services in the areas of payments, lending, investments and crowdfunding. For example, e-commerce platforms like Shopify, payment solutions for online businesses such as Stripe or Square and global money transfer networks such as PayPal all utilize fintech technologies. These solutions allow people to pay each other without having to go through a bank, and they enable online and brick-and-mortar businesses such as gyms, restaurants and plumbers to collect and manage money more efficiently.
Other types of fintech include peer-to-peer lending, which bypasses banks to connect borrowers and lenders. These kinds of solutions have been a catalyst for increased financial inclusion in parts of the world where populations don’t typically have access to mainstream banking systems. Finally, investment and wealth management fintech companies use data-driven analysis to help people find the best saving and investing strategies for their needs. https://greyjournal.net/hustle/work-tech/navigating-the-new-challenges-for-fintech-startups-in-a-changing-economic-landscape/