What is Fintech; The expression “fintek”, which is an abbreviation of the expression of “financial technology” and referred to as “fintech” in English, defines the new generation products preferred due to the lack of classical finance methods. Traditional financial institutions may not always be able to reach the high speed, which is the basic need of the age, because they prefer a human-oriented working system. Delays in payments, orders and various financial transactions can lead to serious crises in the business world. The fintech sector, which was created in order to avoid these crises and to carry out all kinds of financial transactions at a high speed, grows day by day and appeals to a large of audiences.
What is Fintech?
Before taking a look at the limitations and benefits of the Fintech concept, it is necessary to first answer the question “What is financial technology?” So, what is fintech, or What does fintech means in English? Fintech is a set of technologies developed to redefine the financial world and make it suitable for the needs of the age. Fintech activities, which enable companies and individuals to fulfill all their financial needs directly through artificial intelligence devices, expand the possibilities in the world of finance and eliminate borders.
History of Fintech Concept
The history of Fintech essentially dates back to the 19th century, when the global financial system was formed. The concept of fintech, which was used in those years for banks and financial institutions to benefit from technological devices, gains a new dimension since the middle of the 20th century. Since the 1960s, the widespread use of computers and the establishment of business networks; marks a turning point in the history of fintech. The rapidly developing technology until the 1980s took its place in the financial world in a short time. In this process, defined as Fintech 2.0, there is absolutely no artificial intelligence. Although financial records and transactions are carried out over computers, those who use those computers are still experts in the financial sector. In modern age technologies, defined as Fintech 3.0, automation systems come into play and digital software can undertake many operations performed by experts in the financial sector.
What are the Fintech Companies’ Solutions?
The main problem that Fintech companies solve is the constraints caused by insufficient human resources in the financial world. Processing transactions by humans can result in slow payment requests and money transfers. Thanks to the digital designs they provide, Fintech companies allow the following steps to be realized quickly:
- Giving financial directives without the need to go to the branch,
- Supervision of payment and money transfer processes by artificial intelligence,
- Ensuring payment security by digital systems,
- Automatic realization of transfer processes.
Differences Between Banks and Fintechs
The main difference between banks and fintech companies is that fintechs immensely enrich and facilitate user experiences. Fintech companies work to provide you with maximum speed and comfort in trade transactions and personal money usage. For this reason, fintech companies offer users more advantageous and practical solutions than banks. Fintech companies with solutions such as mobile applications, payment cards and virtual POS; provides a great convenience especially for those who want to carry out their financial transactions online.
Past, Present, Future of Fintechs
In the past years, FinTech companies worked to provide technology to banks and to help accelerate the global financial system. But in recent years, they have come to the fore as independent organizations. Financial technology has become accessible, safe and practical for everyone. It prevents restrictions such as time, limit and geography in commercial relations and individual money usage. It gives tremendous mobility to financial resources. It is predicted that fintech organizations will gain even more power in the future and will offer all companies the opportunity to use their own fintech infrastructures. If you want to meet the most modern face of financial technology, you can visit Turkey’s safest fintech, Param.com.tr.