FinTech simplifies financial transactions for consumers or businesses, making them more accessible and generally more affordable. It can also be applied to companies and services that use artificial intelligence, big data and encrypted blockchain technology to facilitate highly secure transactions between an internal network. When fintech emerged in the 21st century, the term was initially applied to the technology used in the back-end systems of established financial institutions. Fintech now includes different sectors and industries, such as education, retail banking, fundraising and non-profit organizations, and investment management, to name a few.
Ultimately, the goal of fintech is to make financial services less expensive and more flexible per transaction. The biggest promise potentially lies in reaching the so-called unbanked and unbanked. Fintech is an acronym for “financial technology”. It's a general term for any technology used to augment, optimize, digitize, or disrupt traditional financial services.
Fintech or financial technology means offering financial services over the Internet. This fintech innovation can include everything from mobile banking applications to mobile payment applications, blockchain and cryptocurrency, stock trading, etc. In simple words, all companies can use fintech for their services and improve or automate their work and procedures. Wondering why? Because with this you can simply offer exclusive financial services to both businesses and consumers at the same time.
Fintech companies can often offer the same solution at a lower price compared to traditional financial institutions. By leveraging technology to automate tasks, fintech companies can save money by employing people to do the work. They also save money by not having physical branches to serve their customers. In general, fintech companies tend to have relatively low overall costs, allowing them to pass on the savings to you.
Today you can find commission-free bank accounts and commission-free stock trading apps. That means more money in your pocket.