Written by Mohsin Akram
Mohsin handles the finances at KUWAITNET. His skills and passion for photography makes him very popular among his coworkers.
FinTech or financial technology is hailed as the next big thing and praised as a completely contemporary, hybrid fusion of Wall Street and Silicon Valley. Although the hype may originally have outpaced reality, in the latest years the new movement has developed quickly to become a force in financial services space. Now it promises to fundamentally alter and disrupt the way businesses grow, manage, and meet customer requirements.
1.THE FINTECH REVOLUTION
FinTech represents a modern fusion of finance and technology. At its heart are the strength of digital currencies, advanced information collection and analysis, and other emerging technologies that can be leveraged to offer more rapid, convenient, and flexible financial services along with growth and improved customer service experience. By providing fresh development opportunities and enhancing the client experience, the FinTech sector has undergone a boom in recent years.
2. REMOVING TRANSACTION BARRIERS
One of FinTech's main growth possibilities is a straightforward reality: completing transactions is a problem. Whether you enter usernames and passwords or provide 16-digit credit card strings and verification codes, customers face countless obstacles when it comes to buying. These friction points add up to a $5 trillion problems; however, tech-driven innovations such as digital wallets, biometric safety measures and embedded in-app buying offer clear options to streamline the process and enhance client experience – an essential factor in driving sales, boosting conversions and winning the competitive fight for client confidence.
3. LEVERAGING BIG DATA
The fact that information is king in the contemporary marketplace is no secret, and FinTech has been a driving force in gathering and leveraging information to maximize effectiveness, monitor cash flow and evaluate customer engagement and behavior. Businesses now have the kind of sophisticated software and managed services at their fingertips that have been little more than a dream earlier, offering extremely valuable insights that deliver enormous investment returns.
In specific, machine learning is rapidly becoming an essential instrument for optimizing logistics, improving client experiences, and analyzing consumer behavior, even decreasing fraud risk. Simply by leveraging the fresh information, businesses can enhance their existing facilities as well as explore the possibility of extra, wider products offering.
4. IMPROVING CYBERSECURITY
As trade and finance gradually migrate into digital space, cybersecurity has become a growing problem. Considering that cybercrime is expected to become a $2.1 trillion by 2019, FinTech's capacity to improve cybersecurity and allow clients to protect themselves against cybercriminals ' disruptive tactics is game-changing.
Of specific interest is blockchain technology, already adopted by many of the most significant players in the economic and tech industries. Blockchain technology provides an effective way to decentralize and secure cash and other asset management without sacrificing comfort and flexibility.
While reducing cases of hacking and cyber fraud to zero may not be possible, blockchain provides an opportunity to alter how customers participate in transactions and continue to become a more strong instrument by which businesses can prevent certain centralized weaknesses.
5. DRIVING THE FUTURE FORWARD
The union of finance and technology has already created market and industry disturbance, and it is unlikely that this trend will go away. The capacity to offer extremely personalized, flexible, convenient services will be crucial to staying competitive as millennials grow to assert a greater stake in the worldwide economy. Whether it is to phase out credit and debit cards in favor of digital payments or to lend services using advanced machine learning to evaluate individual borrowers far beyond a straightforward credit score, FinTech is a fertile ground for innovation and development into the future.
Today's consumers are flooded with more choice than ever, and in a crowded marketplace, it is often hard to stand out and compete. By leveraging FinTech's authority, however, companies can take advantage of the instruments required to generate a more responsive, convenient customer experience and identify bold, fresh development and optimization avenues. The world of commerce is changing rapidly, and in order to succeed, businesses must learn to adapt quickly and turn disruption into an opportunity.
FinTech, Finance, Technology,
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