I got many queries after my last article, asking what is FINTECH is. It’s clearly an interesting area, but still a little confusing. So let’s take it slow.
Technology has changed many things in our lives.
|Communication||Letters||SMS, Whatsapp, Messenger etc.|
|Education||Books/Libraries||Tabs, Laptops, Internet|
|Kids play time||Playground/Outdoor||Video games|
Finance is management of money through the activities such as payments, investing, borrowing, lending, saving etc. FINTECH is how these activities going to change or evolve with the improvements of technology.
Well FINTECH is finance technology and how finance is evolving with the change of technology.
Let’s talk about Money
We started with barter system – I give you a bag of rice in exchange of some clay pots.
Then, commodities – Payments made through gold or silver.
Next, notes and coins – We still use this. Many of us still have some cash in our wallets.
Then, we got in to plastic money – Credit cards and debit cards. Debit cards allow us to use the money we already have in a bank account and credit card allow us to spend money we don’t have at the moment but can be settled later.
Now we are using electronic money – Money transfer through mobile or online. We don’t need a piece of plastic anymore.
The latest and most revolutionary form of money – Digital currency or crypto currency. I’m sure you all heard of Bitcoin.
What is Crypto Currency?
It is distributed global digital money which can be transferred across borders with a minimal fee. It is not control by any central authority and therefore cannot be controlled by a government. Let’s get in to detail in a separate article.
Let me ask you a question. How many of you recently visited a bank to get a loan or to do a fund transfer or even to deposit or withdraw money? Was it a pleasant experience?
For me it was never a pleasant experience. It is time consuming, irritating, have to give information over and over again which I expect them to have already and almost always associated with some kind of additional costs.
The frequency of money transactions expected grow in the future and the transactions itself expected to be global. Therefore the transactions expected to be invincible and seem less.
You walk in to a store and select items to buy, you do not have to stand in a queue to make the payment. You just have to walk out and your mobile phone will tell the store who you are and the items you just purchased and the amount will be deducted from your bank account. An absolutely seem less, effortless and invincible experience.
This is already tested in the year 2017 and we expect more stores coming up with this concept across the globe. This is my friend is the future of money transactions with FINTECH.
Stay tuned, let’s talk about more aspects of FINTECH in the upcoming articles.