how technology is changing financial services

Digital transformation has taken over our daily lives and has gone so far as to dematerialize our monetary exchanges and convert them into digital or electronic money. This economic model of a completely different kind was initiated by emerging companies known as FinTech (technology finance). Since its inception, the use of digital financial solutions has experienced real growth, so much so that by 2030 the annual turnover of the fintech sector is expected to quadruple.

But how do these financial platforms interfere with the economic environment? What are the secrets of their success with the general public?

The Age of Fintech: The Impact of Technology on Financial Services

Technological finance has been in our walls for more than two decades, but its use has increased with the advent of communication technologies (computer, tablet, smartphone) that have allowed us to easily send money online. These modern institutions offer an incomplete list of financial service offerings: electronic wallet, account management and management, mobile payments, savings and insurance subscriptions, crowdfunding, international money transfer.

Today, therefore, banking operations have been transformed thanks to digital technology for freer and more autonomous management. Fintech companies that operate with the status of a financial institution must obtain ACPR approval and are subject to the regulations governing financial institutions, although they are more flexible.

And if Fintech seems to threaten the dominance of conventional banking organizations in a wide range of financial services, it can also serve as a source of inspiration for them in terms of accessibility, efficiency and security. Indeed, contrary to what one might believe, the goal of Fintech is not to overshadow traditional banking institutions. Rather, his role would be to breathe new life into the financial sector, which was already battered by the various crises that followed each other at the global level. It is an economic model that is easily adopted by more people, with competitive prices that support financial inclusion and the creation of new job opportunities.

Estimated at $133.84 billion in 2022, the global fintech market value is expected to grow significantly to $556.58 billion by 2030, underscoring the potential transformative impact of fintech on traditional financial services and the global economy.

AI, blockchain and cloud technologies: What roles in the financial revolution?

artificial intelligence (AI)

This technology, used in many areas, is in high demand in the financial market today, as it supports fintech players in their decision-making. Therefore, it is easier to provide users with personalized offers through more detailed trend analysis. In addition, AI also helps provide ongoing assistance to increasingly demanding customers.

Blockchain technology

Literally, the term Blockchain refers to a chain of blocks that illustrates the way data is stored and disseminated at the level of a business network. In the technological financial market, blockchain makes it possible to strengthen the security and transparency of various forms of financial operations.

cloud computing

Cloud data hosting provides affordable and flexible solutions to budding fintech startups without having to invest in a physical host. Cloud services are tapping into Financial Market 4.0 by providing immediate response. End users thus have the opportunity to store, process and consult their accounting data in real time and from any connected media.

The fintech revolution offers digital financial tools that meet the expectations of the general public, who are always looking for immediate solutions.

Online banking services are designed to transcend geographic boundaries. The fintech revolution is aimed at both individuals and professionals who wish to transfer money abroad directly and in a few clicks, without having to go through any intermediary.

While there are many fintech solutions like Paypal, Western Union, etc., some like Ace Money Transfer stand out with lower fees, a faster and easier to use interface, or the ability to make transactions even without opening an account. Easily access it via Facebook, Twitter and Google while benefiting from the same security conditions.

In short, although technological finance can complement physical financial institutions, it can certainly maintain its independence. The services are almost the same, but availability, responsiveness, security and customer experience have been greatly improved.

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