How FinTech is evolving with money transfer service?
The invention of money as the means of exchanging value has the most important impact on the human population. In the olden days, trading was a way to earn money and with trading came the concept of money transfer for trade payments.
Over the period of time, with the globalization in industries, the need to transfer money became more prominent. Overseas money transfers were made through currency exchange and banks which were much more costlier, being true to the saying ‘money often costs too much!’
Financial technology ( FinTech) is nothing but a technology which competes with the traditional methods of financial services. It cannot be called new as it always existed in one form or the other, from the time when financial services came into existence. However, the global financial crisis in the year 2008 led to the evolution of FinTech companies that have completely reshaped the face of commerce competing with the traditional financial services. In just a few years, FinTech has redefined the shape, pace, and direction across each financial services sector.
The first sights of FinTech, however, were seen right in the 19th century with the Wire Transfer system. At the end of the 20th century, PayPal emerged as the first ever online money transfer system. In the 21st century, the first stable cryptocurrency Bitcoin was launched. Also, the digital media giant Apple launched Apple Pay. FinTech is still emerging and improving with each passing day.
Today, the world has become a global village. We can get all the products or services across the world. Transferring of money from one part of the world to other is not unfamiliar to anyone.
FinTech has influenced the financial services sector in many ways. Some of which are but not limited to:
» Online shopping:
Each of us is familiar with the online shopping today. The ease of cashless transactions has proved its dominance on the traditional shopping methods.
» Banks and lending:
Happy customers are the key to sustain a business. People prefer going to those companies where they feel satisfied with the services. Modern Fintech indulges in engaging customers and provides better user experience. Various models like peer-to-peer lending model connect the lenders and the borrowers to each other. It provides a significant user experience at a low rate.
Fintech is bringing revolution in the traditional modes of payment and creating innovative means through which the payments are made easy and extremely secure.
Various payment options like Google Wallet, Venmo, PayPal, Facebook messenger, Square cash etc are now easily available at our fingertips to settle the payments with friends, family or roommates.
» International Money Transfer:
FinTech Companies have made the international money transfers easy and at the same time they are cheaper. The cross-border money transfer which was once the costliest is now made cost-effective as the FinTech companies have removed the involvement of the third parties in the transactions.
Transferwise, Azimo, CurrencyFair, WeSwap and worldremit have made it possible to transfer the money to the country of your choice easily.
For the sustainment of business, financing plays a major role. Raising finances for your business is a daunting task. However, through crowdfunding FinTech has made it possible to raise the finances for your ventures providing the flexibility and accessibility to funds. It has proven to be advantageous as it provides easier access to capital
The growth in Fintech is clearly evident in the past few years. The FinTech companies are steadily penetrating every business sector with each passing day. With the growing businesses, there is a desperate need for innovative and much reliable software.
As the world is moving towards cashless transactions, the need for security, privacy and user safety has increased greatly. It becomes necessary for the Fintech companies to have and use the platforms that are much efficient and at the same time provide the ease of use. These platforms also need to be interactive for the better engagement of customers as it is rightly said finance is not merely about making money!
Are you thinking about having such a platform for your business too? Coruscate can help you in building one. We are an efficient team who believes in innovations. Give us a call and we can help in transforming your business and taking it to the next level.