What is Fintech, Also Known as Fintech?

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Bade Inanc Sonmez
-2 months ago
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In the most general sense, fintech, also known as fintech or fintech, is the process of using financial services and delivering them to customers.
We can say that it is a new technology that seeks ways to improve and automate. Fin-tech mainly to companies, business owners and consumers
It is used to assist in financial transactions and processes. While doing this, special software used on computers and smart phones
and using algorithms.
When the concept of fintech first emerged in the 21st century, it referred to the technology used in the end-stage systems of well-established financial
institutions. Today
Generally speaking, fin-single refers to innovations brought to the way people do business, from creating a digital currency to double-entry bookkeeping.
Since the internet and mobile internet/smartphone revolution, fin-tek has gained a customer-centric definition as it has shifted towards more customer-centric
services.
fin-single education today; individual banking; fundraising; It covers many different sectors and industries, such as investment management. For example,
money transfers;
deposit checks in the bank via smartphone; applying for a credit card without dealing with a bank branch; like managing your investments. Moreover, in
general
makes it possible to do these without human support. Global fintech adoption rate according to EY's 2020 Global Fintech Adoption Index
64 percent.
What fin-tek applications can we see in practice?
fintech
The startups that make the most of their name and receive the most investment usually have a common feature: against the well-established financial services
we are accustomed to.
challenge them by providing faster/better service. For example, a US financial company called Affirm borrows short-term debt while customers buy something.
is looking for ways to distance credit card companies from the online shopping process. The interest rate may be high, but Affirm has no credit card limit.
He says he aims to include people with low or no credit cards in the process. Similarly, the company named Tala
living in countries; It provides micro loans for consumers who do not have a credit card or have a low limit. The aim is to provide the consumer with local
banks.
to provide better than alternatives.
Ask anyone under 30 how they pay their bills. The answer will probably be “mobile app/internet banking”. From a cash-based society
As we move towards a cashless society, traditional payment methods are being replaced by digital ones. All this is happening thanks to fin-tek.
Donation platforms where you can support whatever you want
gofund
Kickstarter, Patreon, GoFundMe etc. companies are good examples of how the concept of fin-tek differs from traditional banking . These crowdfunding platforms
It enables internet and application users to send money to or earn money from others. Think about it, like in the old days
Instead of going to a bank and getting a loan related to the business/entrepreneurship you want to establish, you can directly invest in the investors
who support your company or project yourself.
you find. More precisely, you tell your point, and they support you if they want. Mass donation platforms in our country and around the world
the number is increasing every year.
New technologies and financial technologies feed each other
new technologies
Finnish-tek companies are already leveraging various technologies such as artificial intelligence, big data, blockchain and robotic process automation.
artificial intelligence algorithms,
can make inferences about the spending habits of customers. This enables financial institutions to better understand their customers. For example, chat
bots are one of the artificial intelligence-supported tools that banks use to assist their customer service.
Generating big data, new strategies and portfolios; analyzing customers' spending habits; to better detect fraudulent incidents
and forecasts customer investments and market changes to create marketing strategies.
Robotic process automation, on the other hand, is an artificial intelligence technology that focuses on automating certain repetitive tasks. This technology,
accounts payable and accounts receivable
It enables to make financial information such as human-made more accurate and effective.
Another element that cannot be separated from Fin-tek is blockchain technology. The blockchain system, which also forms the basis of the digital currency
Bitcoin,
It works with the logic of confirming the money flow from many sources at the same time. Blockchain, which makes a difference because it is secure and
fast, in the fin-tek industry
makes banking alternatives much more effective and error-free. Blockchain-based fin-single, fast fund transfer; world-class security and transparency
Provides financial tracking.
What are the advantages and disadvantages of Fin-tek?
plus minus
Fin-tek's innovations can benefit both customers and small businesses. Among the benefits of Fin-Tek we can count
some:
growing access to financial services, reaching underserved customers; providing ease of use; situations such as spending and making a budget
provide more control over All in all, these innovations are things that can improve the customer experience.
On the other hand, innovations created by fin-tek may also create some disadvantages for customers and small businesses. As machine learning and robotics
evolve,
The need for people to do business will decrease. Similarly, in terms of fin-single job opportunities as fewer people will be needed to provide financial
services.
can turn into a disadvantage.
Fin-tech is something that goes hand in hand with the development of digital technologies. For this, smart phones, mobile wireless access, broadband internet
and data
stations are required. Yes, we live in the 21st century, but there are still people in the world who do not have access to the Internet. There are so many
poor countries in the world that
Even the idea of owning a smartphone or paying an internet bill is absurd. Because they have very basic needs that must be met until they reach that point.
they have. For people living in places like this, fin-tek's cost-effective features mean nothing. Hence the fin-single point global imbalance.
also contributes.
Another disadvantage of Fin-tek is the possibility of damaging privacy. Today, fin-tek works with the logic of digitizing our lives. For example Airbnb
or when using applications such as Uber, we provide comprehensive information about us. What we do and what people who have access to our financial information
do
probability of seeing
is increasing.
Interest in fin-tech is constantly increasing in Turkey as well.
Istanbul
Combining finance and technology to provide better, faster and easier financial services, fintech is developing rapidly in Turkey as well as in the world.
Published by Deloitte
According to the report,
While fin-tech investments in Turkey were 4.6 million dollars in 2012, they reached 29 million dollars with a 175% growth until 2016. With an average annual
growth of 14%
It is foreseen that in the near future, Turkey (with the advantage of its geopolitical position ) will become the center of financial technologies in its
region.
 
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