Understanding FinTech and Its Impact on Businesses

The purpose of technology is, in a nutshell, to improve a task to make it less difficult and/or more efficient to complete. This has lately been demonstrated in the information technology that powers the financial services industries. Finance, insurance, and banking have all seen their processes benefitted by “FinTech.” Let’s examine FinTech to gain a better appreciation for it and its capabilities.

Defining FinTech

Financial technology, or FinTech, describes the services and solutions that are now available to assist individuals and businesses alike in properly managing their finances. This application of technology has exploded with options in the past few years, providing more options for people without the solutions themselves carrying a substantial price tag. Many established financial institutions have also implemented FinTech to give their customers secure access to various services and tools.

As you might imagine, this demonstrates quite a shift from the origins of FinTech, which was basically a tool for financial institutions to use behind the scenes. With the industry’s growth, the customer soon became the intended user, and now, these solutions provide access to bank accounts, credit cards, stock portfolios, and insurance policies alike.

What are the Most Common FinTech Services Today?

As more FinTech-powered applications have been developed, the potential uses for these tools have been expanded upon considerably. In addition to the assorted solutions listed above, there are now apps that allow users to send payments quickly and easily to retailers and other users. To name a few examples of these, think PayPal and its subsidiary, Venmo.

Other varieties of FinTech have also popped up. FinTech also includes crowdfunding platforms like Kickstarter and GoFundMe, assisting users to collect donations for business ideas and other goals. Cryptocurrency is an example of FinTech that has become so popular, it spawned its own application ecosystem.

FinTech Can Also Be Used by Businesses

Today, developers have created a litany of FinTech tools and applications designed for business purposes. Using these tools, companies can secure loans and otherwise access the financial resources they need to manage to ensure efficiency is preserved in their operations. Many of today’s dynamic business management platforms also integrate with FinTech applications, assisting businesses as they interact with financial institutions and crunch the numbers, as they say.

Monitoring your organization’s finances without incurring too much cost is key to properly distributing and investing your available resources. FinTech can help you do so, and BNMC can help you properly make use of it. To learn more about the options your business has to consider, reach out to us at (978) 482-2020 to start a conversation.