The growth of fintech has not only contributed to the expansion of the market for financial services, but it has also made the lives of the general public more convenient. Traditional financial institutions held a dominant position in the financial market before the advent of fintech. The operational model of the financial sector at that time was predicated primarily on human manual labour. The old method of conducting operations in financial markets has been rendered obsolete by the development of fintech.
The Traditional Financial Industry Has Undergone A Complete Transformation
There is a significant impact on the conventional financial sector due to the intersection of new technologies and finance, which is causing substantial changes to the industry’s third-party service model and internal control model.
Fintech has flourished in the last few years and now has a broad spectrum of uses; in short, artificial intelligence, big data, blockchain, and cloud technology are being utilized for payments, settlement, banking, financing, and investment, as well as insurance and retirement management. The financial services industry is undergoing a transformation that has never been seen before, and this trend is only going to continue for many more years to come.
In addition, the integration of fintech into all facets of the financial industry is progressing at an ever-increasing rate. Applying new technologies has resulted in significant improvements in the efficacy of financial services overall, as well as reductions in the expenses incurred by financial institutions during their daily operations. These improvements include intelligent customer support, intelligent risk control using big data, and intelligent investment advice.
Modern financial strategies are rapidly evolving due to the growing use of blockchain, cloud computing, artificial intelligence, and big data in the banking industry. This is the beginning of a new phase inside the progression of fintech.” — CTO of OpixTech, Alex Rowayve
Virus pandemics like Covid-19 have hastened global digitization and increased public adoption of financial technology (fintech). Financial services have undergone significant transformation as a result of these developments. Because of this, traditional financial institutions are stepping up their use of technology. As an example, cloud computing and big data technology may be used to integrate and analyze existing financial data to improve productivity and decrease operational risks; in addition, new businesses can be launched more quickly with cloud computing and big data technology.
Fintech, according to Alex Rowayve , the CTO of OpixTech, has a creative DNA and a business culture that is more in sync with the ethos of the Web than traditional banking, which has a monopoly. Because of this, fintech’s capabilities lay in the selling of regular financial products and the capacity to reach the long tail market at a minimal cost. Instead of being a replacement for each other, they form a complementary partnership.
As fintech and traditional banking become more integrated, we expect fintech to play an increasingly important role in the financial services industry. Technology will enable more people to engage in financial activities, resulting in long-term economic stability and prosperity.
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