Why You Should Join Fintech Innovation - And How it'll Benefit Your Life
What do we think of when someone mentions fintech? Self-checkout lanes in supermarkets. Online banking services, mobile payment apps, and biometric security measures. Even driverless cars will one day manage money for us—no need to go to the bank anymore! That’s what comes to mind for most people. However, fewer understand the great impact fintech innovation has on our daily lives. As these digital innovations become more accessible, they have become embedded into our everyday experiences due to their cost efficiency and ease of use.
Here’s How Fintech Will Change the Way We Live
The way we access finance has been evolving for decades, and the rate of that change has accelerated as automation, digitalization, and AI have become more commonplace. On a macro level, how we manage our finances has become more standardized to the point that it is no longer necessary for us to physically go to a bank or financial institution to access our funds. In addition, the need for physical cash has become less apparent as card payments and digital wallets have become more popular. As such, paper money will likely become obsolete within the next decade.
Banking Services will be More Secure.
One of the most obvious changes fintech has brought us is a heightened sense of security. Online banking has replaced visiting the bank in person, and online banking services have seen a massive shift toward biometric authentication. Biometric authentication is used to identify people based on specific physical characteristics such as a person’s fingerprint, voice, or retina pattern. Unlike passwords, biometric data cannot be hacked or stolen by cybercriminals and is considered one of the most secure authentication methods. In addition to biometric authentication, financial institutions have also implemented advanced fraud detection algorithms to detect suspicious transactions.
Payments Will Be Made Automatically
As we’ve become more reliant on digital services, many industries have shifted towards a “subscription economy” where services are provided automatically as part of a paid membership. This has been seen in everything from gym memberships to online music streaming services. Subscription services have also become a fixture in the financial realm, with many banks offering automatic payment services to simplify bill payments. In addition, as financial services have become more digital, automatic payment features have been integrated into many different industries, including insurance, government, and telecom.
Digitization of Securities and Commodities
Another significant impact of fintech has been the digitization of traditional assets such as stocks, commodities, and real estate. In the past, supplies and other securities had to be traded in person at a physical exchange or through the postal system. Physical delivery was also necessary for commodities such as gold and silver, now sold digitally. Real estate has also gone digital, as blockchain technology has enabled property deals to be executed online.
Conclusion
Fintech is a broad term that encompasses innovation in financial services. The convergence of finance and technology aims to improve the financial services industry. As digital innovations become more accessible, they have become embedded into our everyday experiences due to their cost efficiency and ease of use. Fintech has significantly impacted our lives, and as these innovations become more advanced, they will likely become even more commonplace.