Top 6 Types Of Finance Technologies To Grow Your Business
source link: https://hackernoon.com/top-6-types-of-finance-technologies-to-grow-your-business-xc4o35d5
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
Top 6 Types Of Finance Technologies To Grow Your Business
@elliesinghEllie Singh
Ellie is a digital marketer and a college assignment writer at assignments experts.
What is Finance Technology?
Finance technology is also known as FinTech, is the technology that improves and automates financial services for organizations. Fintech is the emerging technology that helps startup businesses. It provides better financial services to companies and industries through the latest software and algorithms like cryptocurrency Venmo or payment apps like PayPal.
Fintech is the leading technique that will grow and improve further in the future, but the emergence of Fintech happened between 1950-1960 when credit cards and ATMs were introduced. Initially, Fintech was applied to the technology system of financial institutes. In today's globalized world, technology is evolving. Fintech is the most effective tool for continuous development and revolution.
Fintech is the tool that helps consumers to manage their financial services, like tracking, retail banking, and facilitating finances. According to statistics, 64% of millennials and 59% of Gen Xers have banking apps on their phones.
Types of FinTech
Financial technology uses business models and the latest technology to improve and disrupt financial services; here is the list of main
categories of Fintech:
- Crowdfunding
- Blockchain and cryptocurrency
- Payment gateways
- Mobile payments
- Budgeting apps
- Consumer banking
- Robo-Advising and stock-trading apps
- Insurance
Top 6 Finance Technologies That Can Grow Your Business
1. Crowdfunding
In the modern era of technology, business dynamics are swiftly changing. The vast funds and capital are essential for the business for several reasons, such as expanding the association, developing new products, or continuous transactions. Fintech is the tool that enables online funding, which is simple and easy and improves user experience like crowdfunding.
Crowdfunding is the practice of raising funds from more than one person simultaneously through the internet; it is one of the newest modes to raise money for the startup by taking loans, contributions, or investments.
In this system, an entrepreneur shares the description of the business to the crowdfunding platform with complete details; afterward, customers read and place their donations and investment if they are interested in the Business. Crowdfunding is an excellent technique to make money for the app, but it also provides help in marketing the service or products, gets feedback from expecting, and grabs audience attention.
2. Blockchain
Blockchain is a Finance technology that records information that is impossible to hack, change, or gives you the ability to cheat the system. In other words, it’s a method that stores transactional records, called blocks, of the public in several databases, known as the “chain,” in a network associate with peer-to-peer nodes. Generally, this storage is known as a "digital ledger".
Record keeping of information and transactions is an essential part of the Business. Primarily, this information is controlled in the house or passed through a third party like brokers, bankers, or lawyers, wasting time, money, or even both on the Business. Still, Blockchain eludes the transaction's long process by saving both time and money.
Blockchain is an evolving technology with many different advantages in an increasingly digital world.
- Highly Secure:It uses a digital signature feature to conduct secure
transactions, making it impossible to corrupt or change a person's data. - Decentralized System:Typically, for the transaction, you require the approval of authorities like a government or bank. Still, in Blockchain, transactions are done with users' mutual consensus resulting in smoother, faster, and safer transactions.
- Automation Capability: It is programmable and performs systematic actions, events, and payments directly.
3. RegTech
Regulatory technology is one of the finest fintech software innovations; it automatically administrates regulation monitoring, compliance, and reporting. It is the subset of finance technology that focuses on technologies to provide better delivery of regulatory requirements.
Importance of RegTech:
- Regtech is the cheapest and the fastest tool; moreover, it makes it easy to control vast data quantities.
- It allows for a precise automated search of a particular regulation
- Quick pre-and post-trade compliance
- Connecting financial institutions, regulators, and consumers, protecting the interests of all three parties.
4. Artificial Intelligence
Artificial Intelligence (AI) is the leading tool that provides better service for Fintech and other organizations such as healthcare, marketing, and business intelligence by making work more efficient at low investment. AI can think and act just like a human being and even better than humans.
Benefits of AI in Finance technology:
- Accurate decision making
- Automated customer support
- Fraud detections and claims management
- Insurance management
- Wealth management for masses
- Predictive analysis for financial services
Artificial Intelligence can process a higher amount of information about customers, then that data can be compared to customers' requirements, and provide them with timely service or products. This process can achieve a better connection and trust and customer satisfaction at a high level.
5. People Analytics Tool
People analytics is becoming more significant for forward-thinking HR teams. The process revolves around collecting and analyzing people's data to improve organizational decision-making. According to branding
services of the UK, 91% of organizations use essential data-analysis tools
and techniques, like spreadsheets, to manage, track, and analyze metrics like worker engagement, cost per hire, turnover rates, and more. Fortunately, analytics tools exist to help the tracking and analysis of such data, so you don't have to manage multiple spreadsheets and Excel formulas.
For example, suppose the human resource manager hires a qualified workforce for the vacant place and still doesn't perform according to
their needs. In that case, it might negatively affect the company. For these
situations, automated employee performance analytics is the only option that helps HR managers improve the employees' productivity.
It also sets significance on what's to come. It helps in data mining, especially separating information. That information can help you choose future examples that can enlighten Businesses when it comes to decision making. It's a process where assumptions are based on data.
6. HR Tools Migrate to Cloud
Human resources (HR) process automation has changed in the past few years; cloud-based apps and technology have helped HR professionals
overcome many of the obstacles they use to deal with in the past.
For example, employee attendance management; Earlier, the HR manager used to tracks their attendance data through a manual sheet which is
time and cost-consuming and even not that accurate. But the automated
attendance management methods, i.e., time-card, geo-fencing, geo-tracking, etc., automatically save the data of employee’s attendance in an
integrated HR database or cloud safe and secure until the concerned
authority deletes or removes the file from the central computer. Cloud-based solutions are starting to dominate and will be more advanced in the future and be able to better serve the companies.
Conclusion
Finance technology is a leading field that improves and enhances the efficiency of the work for business growth and development. Many companies and industries invest in finance technologies to increase productivity to attract customers and create loyalty for the future.
Create your free account to unlock your custom reading experience.
Recommend
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK