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Back in the days without the power of the mighty internet, people seeking loans had to go to the bank to apply for them.

Financial technology, often shortened to FinTech, is changing that. FinTech is making it easier to save, borrow and invest. FinTech is bringing the power and resources of a bank to your mobile device.

Adopting FinTech completely changes a business for the better. Here are six ways the Fintech industry is impacting businesses:

1. It Offers Better Customer Service

FinTech experts know how vital customer service is to a business. FinTech gives businesses a faster way to interact with customers, clients, and users through real-time data exchange by using artificial intelligence (AI).

AI can help with delivering faster customer service, create a better customer engagement level and provide unique information in a short period of time.

2. Lending Becomes Easier

FinTech is changing the traditional loan-giving system that most banks follow. It's making use of a peer-2-peer (P2P) lending system which aims at reducing the cost levied on the money borrowed. FinTech has made the system of giving and receiving loans so easy that it can be done with the click of a mouse.

Getting the approval of personal loans has become a whole different ballgame. Traditional banks take time processing bank loans because of the criteria set by them of verifying credit score, salary, credit history and the ability to repay a debt. Fintech ventures meanwhile can get a personal loan approved in a matter of minutes, thanks to the combination of AI and great software.

3. It Amps Up the Accessibility Factor for Businesses

FinTech delivers the benefits of accessibility and speed to its customers by offering the combination of the speed of technology and the analysis of finance.

Businesses gain better accessibility through better insights with big data computing analysis and use these insights to make better business decisions.

FinTech also makes itself more accessible to customers. They have access to financial information and transactions on their mobile devices and laptops at all times. All this has led to the rise of mobile banking, peer-to-peer payments and new ways of evaluating credit applications.

4. It Improves Online Payment Gateways

Thanks to FinTech, payments and financial transactions can be done within a span of a few seconds through a secure and easy-to-use interface.

Online insurance companies are using FinTech on their platforms for secure payments.

5. It Brings The Power of Blockchain

By 2020, more than three-fourths of FinTech firms are going to adopt blockchain as a part of their systems.

Blockchain cryptocurrency helps with more secure payments and also helps to make financial trading easier.

FinTech can also use blockchain in regulatory services. Since blockchain cryptocurrency is impenetrable, it can remove risk and complexity associated with regulation. Data that is once imprinted onto a blockchain cannot be deleted or modified.

This is another reason that cryptocurrency is so popular.

6. Improved Retail Experience

FinTech has helped improve the online shopping experience by creating secure payment gateways that are easy to use. Every shopping app is now tied up with a payment gateway to make the shopping experience fun. It's almost as easy as exchanging goods for cash at your local supermarket.

The rise of FinTech can be linked to the way it is meeting market demands and rendering the dated methods of business as useless. FinTech caters to the market demand of giving tech-friendly options that are self-directed but easy to use.

Shiv Nanda

Writing since July 2019 · 1 story contributed