FinTech and its Impact on Our Lives | Financial Technology and its Uses

Hello Dear Lions,
I am coming with another post. In this post i am going to submit my entry for the Zealy Adoption Campaign by @leofinance. There are so many Adventures on the campaign. Basically I am writing this post for The Finance Bro Adventure Quest.

---

The Finance Bro Adventure

Long Form content is a key Feature on Leo Finance.

This Adventure is for those who are into Money-related content creation, or those who want to learn about these topics! After all, Leo Finance wants to provide our users the tools to become financially savvy and achieve financial independence.

GUIDE 📚

This is the largest adventure and it will require research from you, make sure to pace yourself and take the Quests step by step.

• You don’t have to be an expert to finish this Adventure, but you will need to do some research (and cite your sources).
• Do not use AI for the article.
• Beware of grammar/spelling mistakes. If the article is unreadable or has too many spelling mistakes it won’t count for this task.
• Do not plagiarize. If you use sources, cite them at the end using the format [ ] ().
• Use any relevant tags, including tags related to the title of the post.
• You have to connect your LeoFinance account to your Zealy account, otherwise there’s no way for us to approve this quest.

---

In this post I am going to share my Analysis about FinTech. Before writing this post I got knowledge about it from different places. In this regard I have studied articles from different platforms. So let's start now.

What Is Financial Technology (Fintech)?

Financial technology (better known as fintech) is used to describe new technology that seeks to improve and automate the delivery and use of financial services. At its core, fintech is utilized to help companies, business owners, and consumers better manage their financial operations, processes, and lives. It is composed of specialized software and algorithms that are used on computers and smartphones. Fintech, the word, is a shortened combination of “financial technology.” When fintech emerged in the 21st century, the term was initially applied to the technology employed at the backend systems of established financial institutions, such as banks. From 2018 or so to 2022, there was a shift to consumer-oriented services. Fintech now includes different sectors and industries such as education, retail banking, fundraising and nonprofit, and investment management, to name a few. Fintech also includes the development and use of cryptocurrencies, such as Bitcoin. While that segment of fintech may see the most headlines, the big money still lies in the traditional global banking industry and its multitrillion-dollar market capitalization.

Broad FinTech

Broadly, the term “financial technology” can apply to any innovation in how people transact business, from the invention of digital money to double-entry bookkeeping. Since the internet revolution, financial technology has grown explosively. You likely use some element of fintech on a daily basis. Some examples include transferring money from your debit account to your checking account via your iPhone, sending money to a friend through Venmo, or managing investments through an online broker. According to EY’s 2019 Global FinTech Adoption Index, two-thirds of consumers utilize at least two or more fintech services, and those consumers are increasingly aware of fintech as a part of their daily lives.

Fintech in New Technologies

New technologies, such as machine learning/artificial intelligence (AI), predictive behavioral analytics, and data-driven marketing, will take the guesswork and habit out of financial decisions. “Learning” apps will not only learn the habits of users but also engage users in learning games to make their automatic, unconscious spending and saving decisions better. Fintech is also a keen adapter of automated customer service technology, utilizing chatbots and AI interfaces to assist customers with basic tasks and keep down staffing costs. Fintech is also being leveraged to fight fraud by leveraging information about payment history to flag transactions that are outside the norm.

Cryptocurrency

Cryptocurrency (Bitcoin, Ethereum, etc.), digital tokens (e.g., non-fungible tokens, or NFTs), and digital cash. These often rely on blockchain technology, which is a distributed ledger technology (DLT) that maintains records on a network of computers but has no central ledger. Blockchain also allows for so-called smart contracts, which utilize code to automatically execute contracts between parties such as buyers and sellers.

Fintech Users

There are four broad categories of users for fintech:

• Business-to-business (B2B) for banks
  Clients of B2B banks
• Business-to-consumer (B2C) for small - businesses
• Consumers

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

Example of FinTech

Fintech has been applied to many areas of finance. Here are just a few examples:

• Robo-advisors
  These are apps or online platforms that optimally invest your money automatically, often for little cost, and are accessible to ordinary individuals.
• Investment apps
  Its like Robinhood make it easy to buy and sell stocks, exchange-traded funds (ETFs), and cryptocurrency from your mobile device, often with little or no commission.
• Payment apps
  Payment apps like PayPal, Venmo, Block (Square), Zelle, and Cash App make it easy to pay individuals or businesses online and in an instant.
• Personal finance apps
  Such as Mint, YNAB, and Quicken Simplifi let you see all of your finances in one place, set budgets, pay bills, and so on.
• Peer-to-peer (P2P)
  Lending platforms like Prosper Marketplace, LendingClub, and Upstart allow individuals and small business owners to receive loans from an array of individuals who contribute microloans directly to them.
• Crypto apps
  Crypto apps including wallets, exchanges, and payment applications, allow you to hold and transact in cryptocurrencies and digital tokens like Bitcoin and non-fungible tokens (NFTs).
• Insurtech
  It is the application of technology specifically to the insurance space. One example would be the use of devices that monitor your driving in order to adjust auto insurance rates.

---

So that's all for this post. I am so glad to be a participant of the Zealy Adoption Campaign. You can also Participate on this Campaign. Join the campaign through my link :- https://zealy.io/c/leofinance-4960/invite/Sm_CZ5DjGnDXcVGdk_PSe

There is a total of $10,000 USD Prizepool in this Campaign. So don't be late to participate in this amazing campaign.

_{article source: 1, 2, 3, 4, 5}

• _{Free images from Unsplash}

Thanks for reading my post. Thanks for supporting me. I will be back with another exciting content soon. Till then good bye and have a good day.

Sincerely yours,
@vagabondww

Posted Using LeoFinance Alpha