Technology improves a lot of things, especially when it is used to make something that is usually time-consuming and difficult less so. One aspect of life that is changing rapidly is the financial services sector. Finance, banking, insurance, and other industries that would be tabbed as financial services have embraced mobile technology for its ease of use and efficiency. The development of computer applications that make it easier to invest, diviest, and manage financial services and money are becoming prevalent throughout society. Let’s take a look at FinTech.

What is FinTech?

Short for Financial Technology, FinTech is the establishment of financial services that individuals can use to take care of their finances. Over the past few years more options have been developed that free people up from having to depend on high-fee services to manage their financial health. Additionally, FinTech is being used by established financial institutions to help provide customers value by enhancing their ability to have access to financial instruments and services in a secure online format. 

Initially, FinTech was used by financial institutions to more efficiently manage financial institutions’ back end systems. As the industry expanded, however, most applications created today are designed with the customer in mind. If you want to manage your bank account, your credit card, your insurance, or your stock portfolio online, you are using FinTech.

What FinTech Services Are There?

Over the past decade more and more FinTech applications have been developed. There are mobile banking apps, there are apps used to quickly send payment to retailers and other individuals, there are even apps that allow users to take complete control of their investment portfolios. The most popular form of FinTech are the mobile payment apps PayPal and Venmo (a subsidiary of PayPal).

Other forms of FinTech have been steadily emerging. Today there are crowdfunding platforms like Kickstrarter and GoFundMe that are used to fund projects of all kinds. All these apps operate outside of the traditional banking structure. Cryptocurrency has become a popular investment, so a whole application ecosystem has popped up. Additionally, applications using blockchain technology to manage financial transactions are considered FinTech.

FinTech is Not Only For Individuals

Nowadays, businesses can take full advantage of FinTech, as more developers are creating tools designed to be used by businesses. Companies can take advantage of these digital tools to secure loans and access financial resources needed to keep business moving efficiently. Many FinTech integrations can be found in today’s most dynamic management platforms, allowing businesses to interact with financial institutions, pour through financial data, and more. By keeping a finger on the pulse of your organization’s finances, without it costing you a lot, you will be able to tighten up your business’ finances, and let its money work to improve operations and your ability to make strategic investments.

Technology is playing a massive role in the way business works. If you would like to learn more about FinTech and what options are available to your business in this space, call the IT experts at Network Synergy today at (203) 261-2201.