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Introduction to FinTech and Its Benefits in 2021

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Introduction to FinTech and Its Benefits in 2021

Regardless of where you are in the app development game, whether you’re an experienced developer, or a company manager who overlooks such things, you’ve no doubt heard of FinTech apps. Considered by many the way of the future, FinTech apps come with an impressive set of attributes. But before you go on to learn how to develop a FinTech app, let’s first talk a bit about the basics.

What Is a FinTech App?

The term FinTech stands, quite simply, for Financial Technology. Thus, a FinTech app is a large, all-encompassing term that refers to anything and everything to do with finances and apps. Your banking app, for example, the one that allows you to monitor transactions and administer your finances – that is a FinTech app. Your blockchain platform, the one that allows you to perform digital transactions and administer cryptocurrency assets, is also a FinTech app. GooglePay, lastly, which is rapidly removing the necessity of an actual, physical credit card, and allows you to pay for things using your phone, is also a FinTech app.

For short, FinTech apps, by the versatile nature of their being, are part of our everyday existence. As such, they are expected to skyrocket in the next five years, more than doubling their worth by 2022.

The Main Benefits of FinTech

Since the FinTech market is growing so rapidly, it stands to reason that it brings some pretty amazing benefits to its users. Otherwise, it wouldn’t grow. So in this section, we’re looking at some of the main silver linings of using a FinTech app.

Digital Payment

The first and most obvious benefit of such apps has to be digital payment functionality. In the past five years, we’ve seen an immense rise in popularity for online shopping, delivery apps, and general digital transactions. Aside from the obvious practical benefits of such transactions, they also have a psychological effect. Given that you don’t actually see or handle the money yourself, digital transactions somehow soften the “blow” of spending.

Fast Transactions

Another huge benefit of FinTech is that it allows for digital payments as well as peer-to-peer transactions to take place almost instantly. Gone are the days when you’d have to wait a week for your bank transfer to go through.

Ease of Investment

With FinTech, anyone can be an investor nowadays, because it’s this type of app that allows us common folk to put our money into big things, be it cryptocurrency or company shares. FinTech makes such investments easy to manage and administer, which used to be a huge threshold for most people in the past.

Minimal Necessities

It used to be that if you wanted to pay for something big, you needed to come prepared with that sum in cash, or at the very least, bring a checkbook. Now, with the rise of FinTech, all you need is a tiny rectangular piece of plastic (e.g. your credit card), if that. More and more apps, like Apple or Google Pay, are allowing you to authorize transactions with just your phone. And you were going to bring that anyway, so this eliminates a hassle for you.

Regardless if you’re looking to become a Bitcoin owner or if you just want to pay for your shoes quickly and easily, FinTech apps are your future.

 

We are a team of writers passionate about innovation and entrepreneur lifestyle. We are devoted to providing you the best insight into innovation trends and startups.

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1 Comment

1 Comment

  1. Geoffrey Kimani

    02/02/2021 at 13:27

    Fintech is a real gamechanger, we are also seeing banks and other financial institutions picking up the digital mantle for growth and expansion.

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