Financial technology is the use of new technologies to improve finance. It has many applications, from improving customer service with chatbots to automating processes such as mortgage applications. It also encompasses products such as robo-advisors that provide investment advice based on algorithms rather than human advisors, and all-in-one money management apps like Mint. It can even include blockchains, a digital technology that maintains records on a network of computers and allows for secure transactions without central authority.
Financial services institutions have sought to streamline service delivery and cut costs through technology for decades. The first automated teller machine dates back to the 1960s, and credit cards were a major technological advance relative to cash or cheques. Today, all-digital banks – known as neobanks – are growing in popularity among younger, tech-savvy customers, and artificial intelligence (AI) has wide-ranging applications including digital banking. AI can reduce operational costs, improve customer experience and make informed decisions based on historical data.
As with previous eras, fintech innovation has been driven by globalization and seamless communication and sharing of information. That’s why countries like China and India have been able to adopt the latest fintech solutions much faster than the developed world. However, it’s important to note that these emerging markets are not immune from boom and bust cycles. The global financial crisis of 2008 highlighted that strong interconnections are accompanied by risk. This was a time of severe recession and loss of trust in institutions that handled people’s most valuable assets. https://greyjournal.net/hustle/work-tech/navigating-the-new-challenges-for-fintech-startups-in-a-changing-economic-landscape/