New technology, with its innovative applications, introduces further regulatory implications, some of which may be inevitable; however, some might be quite unpredictable. Financial Technology (commonly known as FinTech) is changing the face of banking and online transactions as we know it.
With this fast-paced evolution of modern-day economy, one might consider it wise to rely on the expertise of a fintech attorney to ensure that there is no accidental trespassing of “digital red tape”. We look at what is trending in the financial services sector and unpack what they attribute to everyday life:
1.Emergence of Fintech Companies
Fintech companies aim to compete with traditional financial methods in the delivery of financial services. Bank-FinTech (financial technology) partnerships are becoming increasingly popular as they provide services enabling banks to offer technology banking products to customers. Some other advantages that bank-FinTech companies offer include access to assets and customers. These partnerships are starting to remold the outlook of the financial service.
It is an emerging industry that makes financial services more accessible to all customers by using technology such as your computers and smartphones for mobile banking and investments.
2.Internet or Mobile Banking
We live in a day and age where there are easy ways to make money in the comfort of your own home, so why not manage your money from the comfort of your own home as well? In today’s digital banking environment, we have the power to control our money the way we want to without leaving home.
These third-party financial service providers are now competing with banks as mobile banking is convenient and time efficient. These changes mean that today’s banks are considering their brick-and-mortar locations as pure overhead. Today, customers are not interested in a pretty building; they want round the clock technological access, customer-friendly glitch-free apps, and ways to optimize and limit human interaction.
Paying with your mobile phone is a great new way to make payments as you do not have to worry about being robbed when you are carrying cash or having your card cloned in. You swipe it in the wrong place. Some apps store your debit and credit card details securely so that you can process payments from your smartphone. Most mobile wallets require biometric authorization or other security measures such as fingerprints, passwords or passcodes to pay.
4.Automated Wealth Managers
A Robo-advisor includes services that are entirely automated. They are mostly mechanized systems that are appealing, more trustworthy, and more familiar to many (particularly younger groups of people) who often prefer digital interfaces. A Robo-advisor eliminates mistakes and incorrect data input that brokers often make.
Although one challenge that business owners might face when digitizing their businesses is that there are people who prefer human brokers, as they provide engaging and empathetic conversation and assistance.
Most of the population is credit-challenged, and another categorized as credit-invisible (no credit history). A good credit score gains favor with banks and financial institutions, and with the recent launch of fintech allows consumers to improve their credit records by instantly giving them more control over their credit scores.
Financial services offer the option of working up a payment history from an individual’s phone bills, alternative financial services data, rental payments, and even full-file public records. This means more loan opportunities become available to more people.