Problems That Fintech Can Solve

Digitization is changing the way of the world. In the past two years, with the COVID pandemic, we’ve witnessed a shift towards digital technology. With the world under lockdown, technology kept people connected.

But it’s not just the social media and communication apps that experienced success. The Fintech industry that was advancing steadily witnessed a spike in demand as the need for contactless payments increased.

Investors poured in the finances allowing the industry to flourish, encouraging various Fintech startups like Logiciel Company.

What makes Fintech an excellent investment is the numerous financial management problems it solves. Here we will highlight some of them to help you understand how Fintech can change the world.

Multiple Payment Options

One of the more obvious benefits of Fintech is the numerous payment options. From internet banking to online transactions, credit/debit cards, people have more than one payment method available.

Fintech allows people to choose their preferred payment method for online or offline shopping. In turn, it enables companies to expand their acceptable payment options.

Additionally, people can also purchase foreign goods and pay in foreign currency at an exchange rate relatively better than what the banks offer.

Access to Financing

For most people, money is the major hurdle preventing them from achieving their dreams. Fintech makes it easy for people and startups to get the money they need to get started.

Peer-to-peer lending solutions and crowdfunding platforms, for example, offer an alternative route to businesses and people if the banks refuse their loans. Plus, they make loans more affordable, allowing people to pay off their debts; instead of worrying about increasing them.

Solves Security Concerns

The security of Fintech solutions is one of the significant factors that contributed to the industry’s growth. With the threat of cybercrimes, Fintech offers almost impenetrable security.

Instead of simple password or PIN protection and two-level authentication, Fintech uses biometric verification to secure user data, including personal and financial details, PINs, and more. From fingerprints and face recognition to voice recognition and iris scanning.

Reaches the Unbanked

While it may be rare nowadays, there are still people without a bank account. Several reasons may be the cause, but a common reason is the lack of minimum funds required.

Fintech allows banks and the financial industry to be more inclusive by lowering the minimum required for account opening. It enables people to save whatever amount possible, even $5 a month.

Plus, enabling account opening through mobile apps eliminates the need to commute to the bank’s branch for in-person account opening. That’s another hurdle crossed off the list that may prevent people from opening a bank account.

Access to Investing

Much like expanding financial services and financing options, Fintech also opens doors to the investment and trading market for people that might have been reluctant to invest.

With the advent of investment and trading apps like Robinhood, men and women can begin their investment journey. The apps allow people to open investment accounts, manage portfolios, and more.

The apps also feature robo-advisors and online brokerages that lower the entry cost into the investment market. With minimum commission rates and user-friendly UI, these Fintech makes investment easy and accessible for people worldwide.

The Future of Fintech

Whether you’re an investor or a financial institution, understanding Fintech should be the first step. I hope the blog provided some answers to how Fintech can benefit the world.

Adopting fintech solutions changes how businesses operate. Plus, it’s not just the banks and financial institutions that benefit from Fintech solutions. E-commerce apps and even social media apps that offer a marketplace for vendors and buyers can use Fintech APIs to support in-app payments. It allows people to shop directly from the app they’re using.

The Fintech industry is expanding rapidly, and there seems to be no end in sight. As technology advances and peoples’ needs grow, the industry will continue to produce innovative solutions.

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