When information technology began the journey to world domination, all other sectors jumped on the bandwagon and joined in, otherwise risk being left behind. The financial sector is one of the fastest growing online sectors, and combines the financial industries of the world with the technology sector. This sector is called Financial Technology or Fintech for short.
If the word sounds unfamiliar, Fintech has been around for some time, even before technology was developed to support it and can be dated back to the rise of modern society. In 1886, in a paper by Arneris, Barberis and Ross, Fintech rose as the evolution in combining communication devices like the Telegraph and transportation services like the railroad. These advancements paved the way to deliver financial information across every border.
The term Fintech refers to software and other modern technologies that provide automated and improved financial services and is used commonly by businesses. When the internet and e-commerce business models become a necessity, the use of Fintech also flourished because it embraces breakthrough technology that disrupts the way we carry out transactions. From entrepreneurs and big businesses to the average person on the street, Fintech makes life easier. For instance, people who do not have access to traditional banking and financial services can do online transactions and gain access to insurance or credit without any hassle.
In this way, startups and freelancers in the labour market are attracted to the services of Financial Technology because it utilizes the internet as a visual storefront which is accessible for everyone. Xero, is a Fintech company based in New Zealand and develops easy-to-use online accounting software like an accounting system with a cash book, automated daily bank feeds, invoicing, debtors, creditors, sales tax, and reporting which garnered 1.8 millions subscribers as of 2020.
Another Fintech company that offers online lending is Avant, a platform that aims to lower the costs and barriers of borrowing for middle-income consumers. Also, famous brands who are pioneers in the fintech sector include: Apple, Amazon, Paypal, and JP Morgan.
In conclusion, the growth of Financial Technology is not just a booming trend of modern life, it is also changing our norm in banking. According to a report, by the year 2022, mobile transactions are projected to grow by 121%. This will eventually cover 88% of all banking transactions.
Get on board the FinTech train to make your Gig Life easier.