First of all, what is Fintech?
A tech guru was heard saying at a university conference that while a lot of people love throwing in the word ‘Fintech’ in their conversation to sound upmarket and educated, he realized that not many people understood the meaning of it and while the meaning itself is so inconspicuous, it is difficult to say that people, governments, and entrepreneurs even understand the implication that Fintech has on the business, society, life and on the nation as an entity!
So, the task of defining the term:
Jens munch, a famous financial honcho says that Fintech is the term that is usually applied to the segment of the technology and its start ups which is now in the process of disrupting existent sectors such as payments made through smart devices, transfers effected online, granting of online loans, fundraising done through the virtual world and asset management done via the internet and most of the time the transactions are done in real time bridging the gap between finance processes that took longer time and technology that makes it as easy as click of button.
How Fintech has taken the business world by a storm:
If you have even noticed that today it is not just cheaper for people to set up their own businesses but it is also the best of times to expand it. The businessman today is spoilt for choice. He does not necessarily have to turn to only his local bank or the random investors for setting up his shop or for expanding. He has so many other options in his kitty. Have you heard of crowd-sourcing, group-funding, and mobile payments?
No doubt that Fintech has absolutely revolutionized the way the companies do/can do business today.
Let me explain crowdsourcing to you:
Traditionally, a businessman who had the great idea would approach a bank for loans to aid his capital or pull out the issue for investors to pool money. These are long-term processes that can take months and even years to materialize.
Today, if an entrepreneur has a Eureka moment, he needs to only pitch it on the internet. If his idea rocks and catches the fantasy of people on the internet, and he possesses the Midas touch, he can receive funding from people all across the world that bank on his idea and have never even seen him! Such is the power of using the internet that many businesses have reached the pinnacle of their success only because someone or some people sitting across the globe thought that this startup with a brilliant idea is a good place to put his money. And it was!