How Fintech is going to Change the World of Banking

How Fintech is going to Change the World of Banking

The world of banking as we know it has had the same infrastructure for years. There are major banks around the world that control how the smaller, less relevant, banks operate. Although this may seem like unsustainable foundations to build upon, it’s the best we could do until Modern innovators have managed to create Fintech, which is also known as financial technology. “Fintech involves using software or online services that people can use for financial reasons”, says Haim Toledano, an investor.” It is like a bank, but as a much more efficient concept. The efficiency of Fintech is why it will end up changing the way we live now”.

People have turned to using banks because it is all they knew. It was considered the safest, most efficient way to manage our finances, and could give us the opportunity to take out loans. They are what we relied on when it came to anything to do with money. However, Fintech offers everything that a bank offers, only in a much more efficient manner. People nowadays are becoming much more tech savvy, and are getting used to doing everything electronically. For instance, many people even prefer to socialize online than with people in real life. This is why Fintech is going to revolutionize how we manage our finances. It manages to do everything that a bank can do, and even more. You can deposit money, ask for loans, and the difference is that you no longer need to psychically go into a store to do these things, you can simply do all this at the comfort of your own home.

It is estimated that there are roughly 7.2 billion mobile phones on planet Earth. That’s more phones than there are humans. And this is exactly why Fintech will revolutionize everything we know about finances. There are so many people who have this software at their fingertips, and yet they choose to continue going through a bank instead. “Perhaps it is because our inherent tendency to trust banks because this is all we’ve ever known, but it doesn’t have to be this way though”, says Haim Toledano. “Fintech is without a doubt the future of managing finances. Imagine if anyone who has access to Fintech, used Fintech? There would be no need to visit banks anymore, or even to have your name tied to any banks at all”.

This might be a terrifying idea, but just Imagine the entire banking infrastructure collapse due to the rise of Fintech. Perhaps it is too risky, but all the best ideas were created because the innovators were willing to take these risks. The biggest risk to Fintech is whether the regulations can keep up with the innovations. It is true that turning something electronic can lead to much more rapid expansion compared to when it isn’t electrical. This could be seen as worrying simply because we as a race find it hard to do things without making many different mistakes along the way. This is a curse and a blessing. If regulations can’t keep up though, this leaves the doors open to criminal activity, which is concerning simply because in order for Fintech to thrive and grow, first impressions need to be amazing. Imagine if there are hacking incidents when Fintech industries are still trying to prove they are trustworthy? The whole idea could collapse. This is why the innovators must make sure that regulations are keeping up with the innovations. If they can keep things clean, Fintech will change the world.


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