How Is Information Technology Changing The World
When it comes to information technology it comes in various different forms. No matter what form it comes there is always funding needed to bring these ideas to life. The finance sector such as banking is realizing that there are real opportunities when it comes to financing information technology.
The same way that financing is needed to start a brick-and-mortar location is the same thing as financing information technology startups. Financial institutions are now starting to embrace financing technologies such as Uber, Lyft, Taskrabbit, and many more different types of gig technologies.
They are becoming more open to providing financing for these types of platforms so they can start or grow. The financial industry is noticing that theses creators of these new technologies are becoming extremely wealthy while driving a successful economy. Information technology is not just affecting the financial industry but it is having a global effect on every single industry.
What Is The Effect Of Fintech On The Financial Industry
The financial technology industry is also known as the Fintech industry. This industry is a new technology industry that is looking to improve and automate the delivery of financial services. This technology is a specialized software that can be used on computers or smartphones to help companies and business owners to manage their financial operations more efficiently. Fintech is like Uber or Lyft of the financial industry.
Fintech originally emerged in the 21st century but it was not used as a consumer-oriented service at this time. As of recently, it is now a consumer service and is utilized in many different sectors or industries such as education, retail banking, investment management, and even nonprofit organizations. Fintech has also played a huge part in the development of cryptocurrencies such as bitcoin.
For years The financial industry has not been able to be disrupted but now that is currently changed. a disrupter is considered a startup and it is focused on a particular industry initially. The Fintechs main focus has grown any covers everything from mobile payments to insurance.
That was a survey performed buy a company called Pwc and this survey was a Global Fintech survey and the survey had some interesting findings. The respondents who took the survey stated that they could be at risk of losing a quarter of their business to Fintech companies within the next 5 years. Investors are noticing the trend in the fintech movement and how lucrative it can be if you invest in a Fintech company. The investments have tripled since the Fintech industry first began in 2014. There are more than 12 billion dollars that are currently invested in the Fintech industry.
It is very clear that they Fintech or financial technology industry is gaining ground on traditional banking services. You can even say that it is starting to compete with traditional banking methods. This new financial technology is trying to deliver better financial services than a traditional bank. The Fintech industry will utilize mobile banking, cryptocurrency, smartphones, and investing services to make financial services more accessible and user-friendly to the general public.
Although Fintech technology is fairly new, it is gaining ground quickly and is a new emerging industry. Financial technology is definitely financial Uber or Lyft. Banking institutions should see the potential growth in Fintech and try to work with the fintech industry. Because this industry is not going anywhere and is going to establish itself as a part of the financial industry. The reason why because is its market is the citizens in society. They are focused on making it convenient for their customers so that banking and investing can be done from a smartphone or laptop.