What Everyone Needs to Know About Fintech

What Everyone Needs to Know About Fintech

by | Feb 1, 2022 | Tech & Innovation

Have you heard of fintech? I bet you have, but if you haven’t, this is the perfect place to get yourself properly acquainted. So, what is fintech?

Fintech is simply a fancy word that stands for financial technology. Financial technology, or fintech for short, describes the technology that seeks to upgrade and automate the use of financial services.

Fintech describes any firm or organization that provides automated financial services through software or other pieces of technology. This includes mobile payment apps and cryptocurrency.

Many fintech services are designed to link users’ finances with any technology that creates ease of use in any financial transaction. Fintech is now a global phenomenon seeing as how it has entirely changed the way customers access and use their finances. People are now able to pay tuition fees, pay bills, invest, and buy properties all online from the comfort of their homes using nothing but a laptop or mobile device with an internet connection.

Understanding Fintech

It is used to help organizations, business owners, and consumers to manage their financial operations better by employing software and algorithms that are used on computers and smartphones.

Fintech came into light in the early 21st century; the term was at the time, applied to the back-end systems of banking institutions. The paradigm has shifted since then. Now what you see is a more customer-oriented service. To name a few, the technology now includes various sectors like academia, retail banking, crowdfunding, and investment management.

Fintech also supports cryptocurrencies such as bitcoin.

Generally, financial technology can apply to any innovation in how people transact business. An example is the advent of digital money and mobile banking apps.

Fintech Users

There are generally four major categories of users for fintech:

  1. B2B for banks
  2. B2B and Business clients
  3. B2C for small business establishments
  4. Consumers

Mobile banking trends, increased information, data, more accurate analytics, and decentralization of access will create opportunities for all four groups to interact in heretofore unprecedented ways.

Does Age Have a Role to Play in Fintech?

The answer is yes! Customer-oriented fintech is mostly targeted toward millennials given a huge size and rising earning potential margins of that segment. The younger you are, the more likely it will be that you are conversant with what fintech is, and probably its inner workings.

Below are some of the most popular ways fintech is being used:

1. Crowdfunding Platforms

Companies like GoFundMe, Patreon, and others showcase the range of fintech outside of traditional banking.

Crowdfunding platforms allow internet connection and app users to send or receive money to one another on the platform and have allowed individuals or businesses to accumulate funding from a variety of sources all in the same place.

Look at it this way; nowadays, instead of going to banks to seek out loans and other financial support, some people go to investors for such support. They present their projects and get the necessary backing. The rapid increase in crowdfunding platforms is a testament to its success.

2. Blockchain and Cryptocurrency

Cryptocurrency is a unique type of fintech with the potential to change the financial sector globally. Cryptocurrencies provide a more liquid, fast, secure, and seamless medium of exchange. With the fast pace rise of fintech, it will be a thing of wonder to see how digital currencies and their blockchain technology further evolve in the following years.

3. Mobile Payments

It is not farfetched to say that nearly everyone in today’s world owns a smartphone. With the increased sophistication of smartphones, fintech is able to take advantage of this more smoothly.

Did you know that according to statista data, the global mobile payment market has surpassed the $1 trillion mark set back in 2019?

There are very popular online mobile payment services these days such as Venmo and Apple Pay.

4. Insurance

Yes, Fintech has managed to make inroads in the world of insurance! In fact, it is now being called insuretech, cheeky right? Insuretech covers everything from car insurance to home and data protection.

5. B2B (Business to Business)

Before the introduction of customer-oriented fintech, businesses sought out loans and other financing aids through banks directly. But now, businesses can easily go get loans or other financial services through mobile technology.

Furthermore, cloud-based platforms and customer-relationship management services like salesforce provide B2B services that allow companies to utilize financial data to help improve their services.

6. B2C (Business to Client)

It only makes sense that fintech has many business-to-client or ‘B2C’ applications. Applications that allow clients or users to transfer money via the internet or mobile technology such as PayPal, Venmo, and Apple Pay are widely used and trusted around the world. Then you have finance budgeting apps like Mint which allows customers to manage their finances and expenses.

Regulation of Fintech

Financial services are one of the most heavily regulated sectors globally. It is not a shock that regulation has arisen as the primary concern among governments as fintech companies slowly take over.

As technology is being integrated into financial services processes, regulatory issues for such companies have increased in number. In some cases, the problems are a result of the technology itself. In others, they are a reflection of the tech industry’s impatience to disrupt finance.

For instance, automation of processes and digitization of data makes fintech vulnerable to cyberattacks. Recent instances of hacks at credit card companies showcase the ease with which bad cybercriminals can gain access to systems and cause irreparable damage. The most important questions to ask for consumers in such cases will pertain to the responsibility for such attacks as well as misuse of personal information and important financial data.

Check out how you can protect your devices from cybercriminals.

Conclusion

Now that you’ve learned what fintech is all about, I am sure you now realize that it isn’t so difficult to grasp. Basically, it’s something that you and I have been using for quite some time now, and it provides so much comfort and efficiency. As technology advances, so will fintech. In the not-so-distant future, we are indeed bound to witness fintech blossom in its diversity and practical uses.

Fintech is indeed the future of finance, and the future is here!

Be sure to leave a comment down below to tell us what your thoughts are on fintech.

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Why You Should Start Focusing on Your Retirement Plan Now!

Why You Should Start Focusing on Your Retirement Plan Now!

by | Jun 26, 2021 | Personal Growth

About a lot of retirees have been analyzed to go bankrupt or insolvent not because they receive little or no pension at the end of their service at work, but because they failed to make the best retirement plans ahead of when they retire. So as to avoid the mistake made by other retirees, I decided to wrap my finger around my pen to put words into writing which will provide you with more benefits over other retirees. 

But before I take you on a ride to on the main topic, I will like to remind you what it means to retire. 

What is Retirement? 

Retirement is the period after you have permanently stopped your job or profession. This literally means to pull out or withdraw from work so as to enjoy the good life and start living your dreams, and also to involve in a life well deserved rest after years of back-breaking work.

So now tell me, if you haven’t adequately planned against that time, how would you stand a chance to rest when is time for it. you would probably be forced to go labouring so as to meet up with your demands.  However, this is why you need to plan ahead. 

What is Retirement Planning?

Retirement planning is the financial strategies of saving, investing and ultimately the distribution of money meant to sustain one’s self during retirement.

It is also the financial strategies by setting aside enough money while in service or the middle of your career which you can actualize your goals with after retirement. 

When is the Best Time to Start Planning for Retirement?

The earlier, the better. It is advisable to start making retirement plans right from the day you receive your first paycheck because it gives you enough room and the opportunity to have better planning ahead of you retire. Moreso, it enables enough accumulation of money before you get to leave service.

Reason Why You Should Start Focusing On Your Retirement Plan Now

1.  Retirement Plans Prevents You From Depending Totally on Your Pension

Most employees today or company seem to forget their employers when they retire from work. Leaving lots of retirees in shabby conditions because they rely only on the stipends from their employers. But when you choose to start saving for your retirement now,  your financial freedom account begins to grow. Hence you will be financially free when you eventually retire from service. Therefore makes you more in control of your destiny. 

According to Brian Tracy, among one hundred people who start work at age 21, by age 65 (when they retire), one will be rich, four will be financially independent, fifteen will have some money put aside, and the other eight will still be working, broke, dependent on pension, or dead. The category you will end up in will be determined by your retirement plans and savings before you finally retired. 

2. Investment Helps You Maximize Your Savings 

Every investment is a risk. The risk of either you gain or lose. So therefore when you start planning your retirement at the very early stage, it gives you room to take the risk of investment. Which there is a high possibility that it might double your earnings. But when you are not lucky by gaining, it won’t affect you a great deal. 

Rather, you will rest assured that you have enough time ahead compared to the risk of going into investment a few months or years to your retirement.

Check out these apps that will make you money or hobbies that will make you lots of money.

3.  Retirement Plans Prevents You from Becoming a Burden To Your Children

A wonderful solution to not being a liability on your children is through planning your retirement by saving and investing before you can pull out from work. Though there is nothing wrong with your children taking care of you after your retirement, the best of which a good parent will pray for is to be able to cater for at least 90 per cent of their needs after service, while your children whom you have always prayed for to become successful can cater for the remaining 10 per cent.

Your retirement plan should include what you want to be after retirement, is it a burden onto your children or a financially independent parent? 

4. Investment is the Fastest Route to Maintaining Your Home

A home is considered one of the most valued assets especially when it is big. So the question is how will you be able to maintain that same home you raised almost if not all of your children after you retire? Would you rather put it on sale when you can’t adequately afford its maintenance fee? 

5. Have an Insurance 

When you retire, you are probably not getting any younger again, and more medical attention is needed. And as we all know, age comes with increased medical expenses.

So by that time, you won’t have to worry about paying all your medical expenses by yourself alone since you already have life insurance to cover that.

Conclusion

it’s never too early to begin planning your retirement plan now. in fact, its advantages are notable and will be of great help to you in the future years to come. finally, what plans do you have for retirement?