3 Reasons Why Fintech Is Important
Financial technology, better known as fintech, is the use of new technology to improve and automate the delivery and implementation of financial services. With the world going digital, fintech has proved its utility in all sectors. From local businesses to giant corporations, it offers hassle-free transactions and accessibility to everyone, everywhere.
On my podcast Figuring Out, I had a fantastic conversation with Akash Sinha, CEO & Co-founder of Cashfree Payments, India’s leading payments and API banking company. He has worked with a fintech company before, so we discussed the subject extensively. This got me thinking about how fintech has become crucial in our journey to an advanced future. So, keep reading to find out 3 reasons why I think fintech is important.
1. Cost-effective option
Compared to traditional financial institutions, fintech is a lot cheaper alternative for banking. Fintech organizations do not have to pay rent for different branches or employ advertising, account registration, or management staff. They can operate at relatively low overhead costs, which also benefits the customers.
Being cost-effective allows the fintech firms to provide excellent deals and offers to their customers that traditional institutions simply cannot. Most fintech firms let you open and operate your account at zero charges and do not levy any additional fees on basic transactions. It offers a flexible, transparent, and unified solution so that people can utilize all its benefits.
2. Inclusive and accessible
A smartphone with an active internet connection is the only necessity to avail fintech services, which makes it much more accessible. It has revolutionized the financial sector globally by catering to people who lack access to traditional banking services.
With the advancement of e-wallets, financial services have become more inclusive. Apart from helping individuals, fintech even helps governments by offering mainstream services to regions without such facilities. Most fintech platforms provide a range of services in a user-friendly interface, making it easy to use for everyone.
3. Safe and reliable
There seems to be a bit of polarization about people’s opinions on the safety and security of fintech. Despite its few vulnerabilities, it is much more secure than conventional financial institutes. Traditional firms can often be more prone to digital attacks for their lack of updated IT infrastructure.
The core of fintech is technology, which allows it to adopt the latest technology and cybersecurity measures quickly. It incorporates biometric verification and offers instant notifications, location-based security, and more such measures to ensure your hard earned money is safe.
Fintech has become a dominant force in our economy and finance sector owing to these undeniable benefits. Whether you are managing your personal finances or want to future-proof your business, it cannot be imagined without fintech.
Share your thoughts in the comments. And head to my podcast for more such content.
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