Finance Technology or FinTech is an economic industry, which is composed of the companies that uses technology as a prime factor in an effort to provide the financial services in more efficient and well managed way. Such companies are considered to be primarily start ups, in the financial sector, which are in fact challenging the traditional ways of the financial business and are motivated to provide something different for a complete changeover concerning financial sector.
In fact, the digitisation has turned the world and the revolution in the digital world has impacted financial services and has set up a revolution in the financial sector. Reporting all over pouring in, suggests that the FinTech sector is on the rise with each passing day. The startups are challenging the old concept of financial institutions and are breaking down the barriers set up by the established banking institutions.
Importance of Data Management and Communication
Peer to peer platforms along with the mobile payment systems and several data and analytics products introduced in the market has pushed a new revolution in the financial market and are in fact changing the way the transactions are being done on a regular basis. The concepts of data management and communication as adopted by these FinTech companies are paving a new world for the customers, which is way easier, quicker and profitable. With the communication being laid upon in a better way and interaction between financial institutions and customers being emphasised to understand the needs of the customers, the new entrants are offering a new dimension in the financial sector.
The importance of data management can be understood in a better way, considering the financial crisis of the year 2008, when the world went under one of the biggest financial crisis in every part of the globe. Most of the efforts were a result in the form of failures on the importance of data relationships. When the financial crisis occurred in the year 2008, it became almost impossible for all to tie down the link of data and in fact understanding the whereabouts was almost impossible. The gaps as left in the quality and completeness of such data ensured that most of the influencing agencies and decision makers were unable to take any important and accurate measures to prevent such a financial crisis or to cut down the effects of it.
Thus, considering all such aspects, it was decided later on that the data management will be emphasized and fully effective and highly resourced and integrated framework will be developed in an effort to develop the robust data architecture. With the fast paced technology and careful approach works towards the data management, the financial services sector is on the verge of the data governance programs, which provides a sustainable and robust solution and defense mechanism to the future crisis.
Finance Technology Revolution
With the rapidly changing technology and more involvement of the technology in the financial sector, the financial sector is gaining a different look, where the services are reasonably low priced and are quicker. With the people now turning their attention towards the financial sector more positively in a bid to seek the better solutions to their needs, the archaic practices will be a thing of the past. With the boom owing to the FinTech companies, there is no more option for other established banks and financial institutions, but to adopt the new measures and come up with something extraordinary to stay afloat and thus in a way contributing to the finance technology revolution.
In the upcoming days, more of a financial technology revolution can be expected with several companies currently waiting in the wings to get their approval. Several FinTech Startup concepts, each day are being launched. Presently, the current account, which is being delivered through the prepaid debit card through the android app, will be connecting everything in one like ‘Savings, borrowings, loyalty schemes and all other aspects of the banking as desired by you”. The new concept is thus currently waiting nearby to be launched and change the world of financial sector.
Dealing with the finance technology revolution, this is an era of the service integration and creating a transparency in how the finance sector works. With the increasing use of the coordination among all the competitors in the financial sector, one can come up with the creation of something bigger & better and low priced. A single unified account, which will use the APIs, is very near, in place of maintaining different accounts and thus allowing people to use banking at lower price and more conveniently.
The finance technology revolution has already begun and currently is in the running phase. This finance technology revolution is bound to stay here for a longer time and with the latest technology being incorporated in the daily working process of the financial sector, the things will improve more.
Even, learning through the previous mistakes as of 2008, the big companies are concentrating hard on the data management and the concept of the data management is gaining a strong foothold in the financial sector. The companies are beginning to understand the concept very well and are of the efforts to do it right in the best possible manner.
This is the banking revolution and we have entered into a new era where the financial services comes cost effective, convenient and unified. The last few years have been significant in the banking sector and significant changes have been noticed in the payment, tax, banking, investment and other such aspects. The days are not far, when the smart phones will be on par as a technical innovation and will be our personal adviser and personal banker, assisting us all the time.