Here at Crisp Accountancy, we are on a mission to improve the financial education of business owners like you.
Here is a beginner’s guide to financial technology to help you wrap your head around it.
So, Financial Technology, where do we start?
Financial Technology (FinTech) has taken the world by storm and has become one of the leading sectors on Wall Street and in Silicon Valley.
However, it’s not as simple as it seems. In fact, it’s a lot more complex and it can be a struggle to get to grips with.
That’s why we’ve created this beginner’s guide to FinTech! We will explain what FinTech is, how it works, and the future of FinTech.
So, what are you waiting for? Let’s talk FinTech!
What is FinTech?
In simple terms, FinTech (Financial Technology) refers to any software, mobile applications and additional new technologies that have been designed to disrupt, enhance or even replace traditional financial services.
Here are some examples:
1️⃣ Cryptocurrency and Blockchain
I’m sure you have all heard of digital currencies, especially Bitcoin!
The concept of digital currencies has exploded in the last few years and is continuing to grow!
But cryptocurrencies are not all they seem. The first thing that comes to mind when we think of crypto is investments. However, blockchain (the technology behind crypto and digital currencies) is at the core of financial technology outside of traditional banking.
2️⃣ Mobile Payments
It’s safe to say the use of mobile payments, particularly Apple Pay has become a part of our everyday lives.
All of these apps use sophisticated financial technology that allows us to make payments through an encrypted platform ensures that information is not exposed externally.
(It makes paying as simple as the tap of your phone too!)
3️⃣ Mobile Banking
Similarly, the FinTech developments of traditional banking have massively influenced the digital age where mobile banking is part of our everyday lives.
Today, a number of banks are providing mobile banking applications that allow you to manage your finances from wherever you may be!
How does FinTech work?
Now we’ve covered the basics, how does FinTech work?
There are two primary ways that FinTech can be used. These are B2B (Business-to-Business) and B2C (Business-to-Consumer).
On one hand Business-to-Business (B2B) allows businesses to use Financial Technology to obtain a number of financial services through your mobile phones. Not only this, but there are platforms available that allow companies to access and manage financial data.
On the other hand, Business-to-Consumer (B2C) allows businesses to use FinTech applications to target consumers. For example:
All of which allow users to transfer money through the internet.
What is the future of FinTech?
It’s clear that FinTech is here to stay!
The growth of financial technology has been exponential, and it’s not showing any signs of slowing down anytime soon!
In fact, studies have shown that 82% of financial institutions expect to collaborate with FinTech companies in the future.
To find out more about our services, don’t hesitate to get in touch with us, we’re happy to help!