Fintech (Financial Technology)
In the business field, it is said that there should be a discussion about this program or that others should be guided, whose future is very bright. The scope is very wide. whose salary packages are very good so that a person can live his life comfortably after getting a job. It should not happen that even after getting a job, a person needs to do another job to meet the expenses of the house. There are more job opportunities. If all these aspects are kept in mind, it is very important to discuss Fintech. And we also have to see that there are institutions in our country that are offering this degree.
If we talk about their salary packages in 2021 and 2022, the fintech officials were getting 130000 Dollars in annual salary.
Fintech:
Fintech is based on two words, Finance, and Technology. If we want a technical definition then we can say " Fintech is the innovative use of technology in financial services.
Do you ever wish that paying the bills for lunch and groceries can be as easy as taping on your phone then you only required a mobile application and a bank willing to make it happen. You may hear about this term when you were sitting among the technical friends and if you don't hear it, you definitely use it. Chances are you are using fintech for decades without even knowing it If you were ever drawn money from an ATM or checked your bank statement then you are already a part of fintech.
If we take the example of banks then banks are the key player in the Fintech and telecom is also an important part of the fintech. Mobile phones are the gateway to the consumers but there is another key player without which this industry can not thrive and that is a regulator. The regulator determines how both banks and fintech operate and impact their very survival.
Many people may not be familiar with fintech. And some people who know little may not have any idea what fintech is. And many people think that in fintech because the word tech has come. This is something for developers, software engineers and computer specialists. It has nothing to do with the common man. Although fintech is only related to the common man. These are the mobile applications we use today. Like Uber, McDonald's. This is your fintech. As many banking applications as you have. They are also your fintech based apps. fintech is developing so fast. That i personally believed that within few years your old school of accounting and finance will be over. Obviously, its base will remain the same. But the present age and the coming age is of finance technologies. You will only think for ten seconds۔
How many applications do people around you use in a day? You have JazzCash, Easypaisa, and all banking applications. You have riding apps and the Foodpanda app. All of these are based on fintech. of your shares, of your investments, and of blockchain. All of these are fintech.
What is fintech and why is it important in today's world? Basically, you know how the revolution is coming. Similarly, things are moving towards automation. Similarly, our financial system is our accounting, our payroll is our banking software. Everyone is automating themselves. they are shifting to artificial intelligence. Where you make only one entry and its full effect goes to the entire system. How your banking channels are working. this is all fintech. This is the merger of finance with technology. In simple words, your accounts are digitized. We are bringing what we eat in digital form. That is the fintech. Unfortunately in Pakistan again as usual we are lacking behind in the fintech.
We have no idea how far behind we are. I think no degree has been offered in Pakistan yet. Degrees in fintech are currently being offered all over the world. not only for the master's but the bachelor's as well. Degrees in fintech are being offered in Canada, USA, UK, Australia, etc. Degree in fintech is being done in three domains.
Different Domains of Fintech:
Now you must be confused about how fintech can offer three domains. This three-domain is like this. In the first domain are our IT developers and software engineers. Who will develop the entire application? And will create a system. As many banks as there are systems. It is developed by developers. So if they don't have fintech information. So obviously they can't work. This is their domain too.
The second domain belongs to people who are our accounting people. For example, our debit, credit, minus, plus, etc. are all our finance tools. And can be implemented in accounting. balance sheet and financial statements etc. All this work is of financials which comes in the field of accounting and business. And those who look at charter accounting and finance matters come into this second domain.
In the third domain come those who do all the policy-making. For example, if I talk about Foodpanda. You may have noticed that there are many different offers on it. If you buy a KFC deal from Foodpanda, you will get it for only 200. All the calculations are behind it. Obviously, the company cannot have any loss. It cannot be that the company is feeding you KFC by paying from itself. Let our application run. There is a whole science behind it. There is a whole work behind it.
All this work is called actuaries. It also has a master's degree called Actuarial Science. In it, you learn about policymaking. All this work is done by Actuarial Scientists.
So your software person is also involved in this, your actuarial science person is also involved in this, and your finance and business people are also involved in this. So this is the result of the joint efforts of these three types of experts.
Accounting system based on Blockchain:
Blockchain is surely born into fintech and is already bringing quite a lot of interest. Blockchain for fintech is a very powerful tool. But until the regulators don't allow it to be deployed in full, recognizing digital signature, a timestamp by blocks in a blockchain is going to be hard that this is going to be actually fully deployed.
Lets think exactly, for example, the payment with a credit card. Before the payment with a credit card arrives in our bank account, there are 12 companies with 12 databases. They bring the data one to the other before it arrives to the bank account.
With the blockchain, it is up in a single transaction. So, in many cases for remittance and for rebalancing accounts even between a single bank, a blockchain solution allows to remove errors. There are branches in different time zones. At the end of the month, the one time zone branch writes the transaction in the previous month, the headquarter writes the transaction in the next month and when the month goes to level, there will be a lot of confusion. The accounting system based on a blockchainblockchain will guarantee that all is aligned perfectly.
Posted Using LeoFinance Alpha