The financial technology is something that not a lot of us are clued up on, or how it even impacts our world, makes an impact on our finances. More so how do we leverage the service in order to use it to our benefit?
FinTech is a term used in a segment of the technology start-up scene, which in this instance would be the financial industry specifically in banking. Where is it disrupting the sectors such as; mobile payments, money transfers, loans, fundraising and including asset management.
The traditional methods of banking institutions are fast becoming a thing of the past, for years the most common and accurate way of indicating whether consumers qualify for a banking loan or credit was by tracking online data and traditional online credit intelligence. Today FinTech has made is possible for every entrepreneur to set up their business and expand it, without even stepping into a conventional banking institution, which makes the costs far cheaper than any bank.
One would ask themselves, what makes FinTech so different, why even start interacting with it as a business? There are various ways in which FinTech has quietly explicitly flipped the conventional ways of banking on its head. Today as a small firm you can easily access “Crowdsourcing” where entrepreneurs with big ideas are able to get funding quickly and easily from anywhere in the world, from people you’ve never met. Another advantage is transferring money across borders; this has been the bane of everyone’s existence since the dawn of time, however, FinTech innovators have now reworked and reframed transferring money, making it far less inexpensive than ever before. The above-mentioned attributes are just a few ways in which FinTech is more agile and adaptable compared to traditional banks that are burdened with overhead commitments.
The rise of FinTech has offered a world of opportunities, the industry itself has increased to $12 Billion investment in 2015, it is fast becoming an explosive industry which is yet to take off in Africa. If you would like to know about companies within that space visit www.fintechafrica.com