Author: Özge Nur Karakoyun
Publication date: 13.02.2024
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FinTech is financial technology expressed by the combination of the terms "finance" and "technology". In particular, it's used to describe new technology that aims to streamline, digitize and automate traditional financial services. So, FinTech, which has a wide range of services, covers a rapidly growing and centralized industry.
Why is Fintech important?
Providing digital advantage
One of the few important advantages of Fintech is that financial transactions can be carried out digitally. While traditional financial transactions can take days or weeks, with fintech these processes have accelerated to a few minutes. For example, transactions such as opening a bank account or applying for a loan can now be easily done through online platforms.
Facilitates access
Another importance of Fintech is that it facilitates access to financial services. In the traditional financial system, many documents and procedures are required for transactions such as opening a bank account or applying for a loan. However, fintech companies are simplifying this process, allowing more people to access financial services. Thanks to fintech, accessing financial resources has become easier, especially for people with low income or no financial experience.
Reducing costs
Another point about the importance of Fintech is that it reduces costs. While traditional financial transactions can often require high fees, fintech companies can offer services at lower costs. For instance, with the proliferation of digital payments, the use of physical money such as cash or checks has decreased, which has reduced costs.
Simplifying processes
Another advantage is the ease it provides in personal finance management. Thanks to Fintech applications, people can better track their income and expenses, make a budget and gain the habit of saving. Therefore, Fintech applications, with their user-friendly interfaces and instant notifications, allow us to be more conscious about financial matters.
What are FinTech Examples?
Online payment option
One of the first revolutionary moves in payment transactions and money management was the creation of the online payment option. In this way, the need to physically go to a location to make payment has been eliminated. In this respect, e-commerce has benefited greatly from the online payment option brought by FinTech.
Mobile payment
In our age where mobile devices have almost completely covered human life, payments can now be made via mobile. In this way, customers were able to shop and pay their bills via their phones.
Money transfer
One of the most important conveniences brought by FinTech is the ability to transfer money through digital banking and mobile applications. For example, it has become possible to transfer money from person to person within seconds. When we look at it today, most customers / users now transfer money via mobile.
Digital banking
So how does this type of money transfer occur? Of course, with mobile applications for digital banking. When it comes to FinTech, one of the first innovations that comes to mind is digital banking. Thus, the necessity of going to the bank and waiting in line for a long time has been largely eliminated. This allowed customers to save time and eased the staff's workload.
Cryptocurrency
Cryptocurrencies and blockchain, which have increased their popularity, especially in the 2020s, are also considered among FinTech examples. Fintech innovations have influenced trading platforms like Binance, where users can use advanced technology to easily trade digital assets.
Contactless payment feature
The contactless payment feature has become more popular especially with the pandemic. In fact, it is one of the innovations brought by financial technology, that is, FinTech. Thanks to this ease of payment, payments can be made without contact between the card to be paid and the POS device.
Fintech in a nutshell
Fintech plays a major role in increasing efficiency in financial transactions, reducing costs and providing a better service to customers.
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