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Fintech is a combination of the words ‘financial’ and ‘technology’ which refers to ways of making financial processes and traditional financial services more accessible using software. It is used to describe new technology that seeks to improve and automate the delivery and use of financial services. Essentially Fintech was developed to help companies, business owners, and consumers better manage their financial operations and processes.
Financial technology has grown massively since the creation of the internet. Fintech which applies to the back office of banks or trading firms, now describes a broad variety of technological interventions into personal and commercial finance.
Examples of Fintech
Fintech has been applied to many areas of finance, for example some of the below:
- Roboadvisors are applications or online platforms that invest your money automatically into stocks and shares.
- Investment applications make it easy to buy and sell stocks, ETFs (Exchange-Traded Funds), and crypto from your mobile device.
- Payment applications now make it easy to pay individuals or businesses online and in an instant.
- Personal finance applications which help to manage your finances and pay bills with the click of a button.
- P2P (Peer to Peer) lending platforms allow individuals and small business owners to apply for, receive and manage their loans.
- Crypto applications including wallets, exchanges, and payments for example Bitcoin and NFTs.
How cloud impacts the financial sector?
The role of cloud computing in the financial sector is expanding and below we look at the impact it is having on the financial sector.
- Improved customer experience: banks can provide a better customer experience by offering anytime, anywhere access to banking services.
- Faster processing speeds: cloud platforms are designed for fast performance and can handle large amounts of data quickly and easily. This allows banks to improve their transaction processing speeds and reduce latency problems.
- Reduced costs: banks can save money by moving their applications and data to the cloud. The pay-as-you-go pricing model of public clouds makes it more affordable for financial institutions to use these services.
- Greater scalability: cloud platforms can scale up or down as needed, which gives financial institutions the flexibility they need to best serve their customers.
- Enhanced security: the public cloud is a more secure environment than most on-premises systems, and it offers multiple layers of protection against data breaches and cyber attacks.
- Compliance with regulations: Banks can meet regulatory compliance requirements by using cloud platforms that are compliant with financial industry regulations.
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