When finance and technology meet, it becomes fintech. The introduction of fintech has revolutionized the financial world. It has leveraged digital innovation to reshape the financial world and has enhanced accessibility, making services like banking, insurance, and investments more inclusive and cost-effective. 💻💰 Here are some pros of fintech: ✅Increasing efficiency: The repetition of multiple tasks that took hours to do manually can be done in seconds with the use of fintech. Companies can now automate their manual tasks to save costs. ✅ Access to real-time data: Fintech is increasing at a very fast pace. With this innovation, finance professionals can now access vast amounts of real-time data within seconds and make an informed decision. This has enhanced the role of finance professionals to utilize the data properly, interpret, and analyze them to make better strategic decisions. ✅ Customer experience is enhanced: With the introduction of fintech, the concerns of customers can now be solved within seconds. With its user-friendly interface, finance professionals are better able to understand their target customers, their behavior, and preferences, and even provide personalized financial solutions as well, thereby giving customers a better banking experience. ✅ Ease in borrowing and lending: Traditionally, borrowing required hours of work, standing in long queues, and submitting multiple documents. However, with the introduction of fintech such as robo-advisors, peer-to-peer lending, digital wallets, and blockchain-based technology, the time to have a loan approved has now reduced. ✅ Managing risks: Just like the two sides of the coin, every firm enjoys profits but does want to manage risks as well. Traditionally, it was hard to manage risks in real-time. But now that the innovation of fintech is spurred, companies can leverage technology to manage risks in real-time, ensure they comply with the regulations, and help them detect fraud. Although the innovation of fintech is increasing every day, with great benefits come with great consequences as well: 🚨 It is leading to the displacement of traditional finance roles that are now being automated, leading to a decrease in jobs. 🔒 With the increasing use of technology, there comes an increased responsibility for managing cybersecurity risks. 📚 Due to digital literacy issues, not everyone has access to the necessary skills required to manage fintech. Learning new skills requires a considerable amount of time and money which might be an issue. 📉 Over-reliance on technology can lead to system disruptions or operational failures which can impact customer experiences and lead to losses. To conclude, fintech is transforming traditional finance roles efficiently, but we must also look at the consequences before making any decision. Penned by: Sakchhi Agarwal, FRM #FinTech #Finance #Innovation #DigitalTransformation #FutureOfFinance #CustomerExperience #RiskManagement #GirlPowerTalk
Thank you for sharing your valuable insights Sakchhi Agarwal, FRM 😊
Thanks for sharing
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Young Leader at Girl Power Talk
1moThank-you for sharing