Everything about Fintech and its Different Uses in 2020

Fintech has been used to describe financial technology which is an industry that includes any type of technology in financial services starting from businesses to consumers. It illustrates about any company that offers based financial services by using software or other technologies along with mobile payment applications to cryptocurrency.

In other words, Fintech is all about any company that uses mobile devices, internet, cloud services or software technology to connect or carry out with various financial services. Many Fintech application development products have been designed to connect consumers’ finances with technology for better use though the term is applicable for business-to-business or B2B technologies too.

Traditional uses of Fintech

1. Crowdfunding platforms – Crowdfunding platforms enable the Internet as well as app users to send or receive money from others on the platform. This has also allowed individuals or businesses to pool funding from different sources at the same place. Rather than visiting a traditional bank for loan, it is quite possible to go to the investors for complete support related to a company or project. Though the applications may range from family and friends funding to patron funding and fan, several crowdfunding platforms have already multiplied with time.

2. Cryptocurrency and blockchain – Cryptocurrency and blockchain are some examples of fintech.  Cryptocurrency exchanges such as Gemini and Coinbase will connect users for purchasing or selling cryptocurrencies such as litecoin or bitcoin. Apart from crypto, blockchain services such as BlockVerify lessen fraud by keeping derived data on the blockchain. Though blockchain and cryptocurrency might have controversial uses of Fintech, they have taken certain parts of the investment in the last few years.

3. Mobile Payments – Nowadays, everyone uses a smartphone for making some kind of mobile payments. With this latest technology, different services have emerged that enable consumers to exchange for money and payments online on various mobile devices.

4. Insurance – Fintech has also interrupted the insurance sector and included everything, starting from car insurance to home insurance as well as data protection.

5. Robo – Advising and Stock-Trading Apps – Robo-advising has already disturbed asset management sector with portfolio management and algorithm-based asset recommendations that seem to have reduced costs and increased efficiency. Due to the rise of advanced technology that evaluates different portfolio options, financial institutions have already adapted to provide online-robo advising services. One of the major innovations in the Fintech app development industry has been the development of stock-trading apps. Earlier, the investors had to visit the stock exchange market directly but now they can purchase as well as sell stocks at the tap of a finger with mobile devices.

6. Budgeting Apps – One of the common uses of fintech is budgeting apps for the consumers that have already grown exponentially in popularity in the recent years. In the past, consumers need to collect checks, create their budgets or navigate through excel spreadsheets in order to maintain a track of their finances. But after the fintech revolution has prompted with the development of financial services apps, consumers can maintain a track of their income, expenses and other budgeting tools effectively that seem to have revolutionized the way consumers think about their money.

Who uses Fintech?

Many people will have a budget app or two on their mobile phones, it is important to know about other users of Fintech and it can be used in several ways.

• B2B or Business to Business – Before Fintech app development companies had been developed, businesses would need to visit the banks for getting loans and other financing options. With the advent of fintech, businesses can get loans, financing, and other financial services easily through mobile technology. Besides, customer-relationship management and cloud-based platforms services like Salesforce (CRM) offers B2B services that enable companies to interact with financial data for improving their services.
• B2C or Business to Client – Fintech has different kinds of businesses to clients or B2C applications. This will enable customers or clients to transfer money through mobile technology or internet and budgeting apps enable customers to manage their expenses as well as finances.

Thus, you may get in touch with our Fintech app developers at Induji Tech and take your online business to greater heights of success and earn huge profit out of it.