Financial Technology (Fintech) – Why We Don’t Have to Worry

Financial technology or fintech as it is popularly called are those aspects of financial service industry where IT specialists have made their weight felt by developing ubiquitous tools that one in their right senses will want to ignore.

Hardly would you find any financial institution that does not have an app, social media platform and a website just to mention a few. Even independent financial intermediaries have developed apps and other mobile applications that allow for easy financial transactions.

We have overtime come to trust middlemen in our financial dealings and other online transactions that we easily give access to our digital self. Take the uber and Airbnb as examples.

There are nay sayers that constantly instigate fears in the mind of people that the whole world will come to an end due to fintech.

Enough of nay-saying and time to recognize and embrace the commendable efforts of the FinTech guys; and that is exactly what this article is set out to do as it is written to reassure the fintech community that all hope is not lost as often propagated by FinanceInfoTech doom sayers.

10 Reasons Why Fintech has come to Stay

1. Increased public awareness: through the help of all fintech stakeholders, sizeable general public have been made aware of the existence of cyber threats and also made aware of how to protect themselves. Banks for example on a regular basis send out mails containing tips on how to be safe online to their customers.

2. Boom in the millennial: the millennial who happen to be majority of people that lely on fintech happen to be born with them. My 2 year old lovely daughter knows how to turn on a laptop and play her favourite nursery rhymes. I know that there are prominent IT research institutes who carried out research and concluded that the millennial are more at risk of being hacked due to their youthful exuberances but the fact that they have been using theses gadgets from birth and have been made aware of the security risk ameliorates for this threat.

3. Lower costs associated with the deployment of fintech: advancement in IA and technology in general have seen the costs associated with implementing IT infrastructure for smooth deployment of fintech projects plummet over the last two decades. This trend will continue as more and more talented individuals are attracted to fintech.

4. Ease of using fintech: nothing is more appealing to the general public than the ease of usage that they now experience in the world of IT. Unlike the DOS era when only the brave dare to use computer and mobile devices (as if there was much then).

5. Increased desirability of mobile working: we all enjoy doing things from the comfort of our homes. I would rather make that money transfer using online banking than go to the bank for this and I can almost guarantee that am not alone in this.

6. Emergence of digital wallets: we have gone too far into the work of financial technology to go back now. You will understand how appealing it is to have a digital wallet if you have ever lost your ordinary wallet that is cash laden before. I have lost one and would rather not go back to that old way of life.

7. Improved fintech security: the IT security community are matching very move made by the bad guys pound for pound. Though the war will continue forever but the good guys will always be victorious.

8. The sharing economy: this phrase was originally native to the coding community but has now found its way into the mainstream economy to mean many things to many people. In this context, sharing economy means buying things through your connected devious from anywhere in that world that you maybe. This new habit of ours will continue to grow that we will do anything within our power to collectively squash any ‘attemted-attempt’ to stop collaborative consumption that we all love and enjoy.

9. Increasing government support to make our cyber world safe: the department of defence and other governmental agencies are doing their best to make our cyber environment safer.

10. Rapid increase in the IoT: the number of things that have been estimated to be connected by 2020 is mind blowing. All sorts of items that we once never thought could be connected are now finding their way into the realm of internet of thing (IoT). I can monitor what is cooking in my microwave in the comfort of my sofas through my smartphone that is somehow connected to the microwave.

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