To know more about the contribution of fintech application in bringing reforms in the banking sector, but first we need to understand the basics i.e “What is a fintech application?”
What is a fintech application?
Fintech application is based on the latest IT technology which is used to upgrade the existing performance of the application using specially developed tools to deliver the best services for the designated clients or users. In other words we can say that fintech applications are used in various sectors from primary sector to service sector to improvised performance of the companies, business organizations and other institutions that are related to banking and finance. It manages the financial transactions, data processing and analyzing the data trends by using innovative tools. With the technological leaping forwards so do the fintech application development to match up soaring demands of the financial operations in the most convenient way.
To know the importance of fintech applications we have to read the following points regarding the contribution of fintech in bringing down substantial change in the banking system. Important points of fintech are as follows:
- Smart technology
With the inclusion of smart chips for the working of fintech apps the percentage of financial loss has reduced heavily ever more than before. For example, the use of a microchip inside the AtM card lets the user perform the financial transaction within the reach of their fingertips. The micro chip function is based on the EVM technology and executes smooth financial operations from any atm accessed points. Now it is upgraded with the inclusion of OTP (One Time password). This lets users perform financial transactions by putting the unique received at that point of time on AtM card holder linked mobile number in the form of SMS. since the OTP validity is short which is just 15 minutes after once generated . Therefore this kind of feature is only included due to fintech technological innovation.
- Pay utilities in one go
Fintech applications let the users access the power of paying crucial utilities bills such as electricity bills, water bills, gas bills, toll tax payments, etc from a single app with a tap of our fingers. It doesn’t only let users pay utility bills but also perform payment of credit card bill payment, payment at shops, mobile recharges, DTH recharges, broadband bills, etc also . With the help of fintech apps users can pay for tickets right from their home, skipping to be physically present at the place physically. It saves the precious time of the consumers as well as service providers.
- Funds transfer
When we talk about financial services monetary transactions are one of the important features of the financial technology application. With the better integration between various financial institutions now users can perform successful monetary transactions within or outside the bank . In just a few steps without visiting any bank or financial institution physically we can complete a successful fund transfer. And for completing an international monetary transaction there are also provisions to perform in the minimum time from the apps.
With the inclusion of fintech technology into the smart wearable devices or NFC tags we can perform touchless transactions within a fraction of second. Since most of the technology wearables such as smart watches, fitness bands, NFC tags etc come equipped with nFC chips and gives the ultimate experience to their user to perform instant payment of funds at shopping malls, railway stations, metro stations, etc.
- Satisfied customer and virtual assistant
In the age of machine learning and artificial intelligence the fintech apps are also not untouched. Developers are extensively using the tech of automation in the financial sector. For example the use of chat bots, virtual assistants, auto generated emails, etc are the parts of fintech that reduce the intervention of human interventions and therefore automating with the use of machine learning and AI in the form of chat bots or virtual assistants . They are developed to give repeated or most asked questions successfully and project a satisfied customer by solving the query in the quickest manner. Therefore with the use of these tools we well customer base is maintained by any financial institutions of banks.