Financial Technology - A Dive into Fintech

FinTech - What You Need To Know

Financial Technology or better known as Fintech is currently the description of a business that aims to provide financial services by making use of modern technology tools such as mobile payments.  It is a multibillion-dollar industry changing every financial aspect of our life. Indeed, you can now open a bank account over the internet, without physically visiting a bank. You can link the account to your smartphone and use it to monitor your transactions. You can even turn your smartphone into a “digital wallet” and use it to pay for things using money in your account.

Fintech has been manifesting in many shapes and forms and you might have encountered it without really knowing that you are an active user of Fintech!

Mobile payments might be one of the most popular uses of Fintech. Using increasingly sophisticated technology, services have emerged that allow consumers to exchange money and payments online or on mobile devices.
Moreover, raising funds has never been easier thanks to Fintech! Crowdfunding platforms allow internet and app users to send or receive money from others on the online platform, and have allowed individuals or businesses to gather funds from a variety of sources with a click of a button all in the same place. Fintech has also made the world of Stock Trading easier and more accessible thanks to Robo-Advising. Smart Robots are now able to provide algorithm-based asset recommendations and portfolio management for stock traders increasing efficiency and lowering costs.

How Can Fintech and Telecom Cooperate?  

With two types of corporations controlling full access to the most important platform for businesses: Smartphone Manufacturers and Mobile Network Operators, no digital revolution can take place without them. In fact, while smartphone manufacturers are best positioned to control the gateway into one’s digital life, telecom operators are in a power of connectivity and distribution.

At the center of all these opportunities is Operator’s DATA, with large subscriber bases, telecom companies generate rich consumer behavior data on a daily basis, offering a detailed look into one’s personal digital universe.

Yet very few Telcos are really taking advantage of such potential. As a result of the pressure caused by declining voice and messaging revenues, MNOs are now more eager than ever to monetize and expand other sources of revenue – which, of course, includes mobile money.
Operators & Fintech

Operators should indeed be aware of such potential and utilize Fintech and Big Data analytics services and products to help them ensure maximum efficiency.  

Most M-Banking solutions hold a large range of products for Operators allowing them to become Virtual Bankers and commercial banks to deliver telecom mobile services.

For a successful implementation of M-Banking, M-Analytics tools are used. These extract customer profiles from mobile operators’ data and helps with the segmentation and setting of a digital score for Fintech Services. With this score Banks and Operators offering services such as credit cards and loans will have better knowledge of their customers.

With this, Each Mobile Network Operator will have the potential to become a provider of banking services within the framework of the monetary regulations in its territory on a secure platform built on Blockchain technology.

There is no question that Fintech might be the biggest new Technology leap with Wireless finance, and is here to fulfill an institutional and consumer gap need on an unprecedented scale. For a reliable fintech software development solution that can streamline banking operations, consider as an option.

Inside Telecom provides you with an extensive list of content covering all aspects of the tech industry. Keep an eye on our Fintech sections to stay informed and up-to-date with our daily articles.