Posted on: May 3, 2019 Posted by: James McQuiston Comments: 0

Financial processes have experienced a massive upheaval in recent decades. As digitalisation continues in the global financial market, newer technologies are continually developed to help streamline processes for both customers and financial organisations.

From changes in personal banking due to online banking technologies to the rising number of payment options due to mobile payment systems, countless financial processes are now using financial technology, also known as fintech.

Fintech has seen massive growth in a very short time. This can be attributed to improvements in technology that have accelerated the growth of countless sectors, with fintech spurring changes in countless financial processes through the innovation of technology.

Online Banking

One of the best examples to showcase the rapid growth of fintech is banking. Previously, bank branches offered customers all the financial services they needed, including depositing money, securing loans, mortgage applications, and even investment opportunities.

By the mid-1990s banking would experience modern fintech as we know it, when Wells Fargo created the first online checking account in 1995. In just a few decades, online banking has taken over the sector, with almost half of customers using their phone or computer for online banking process.

The development of banking applications has helped to further advance online banking processes, giving customers the chance to utilise mobile commerce processes for a more streamlined experience.

Almost anything you could do at a bank branch can now be done in a few minutes using your smartphone. For example, you can completely manage your mortgage using financial technologies like online banking and banking apps, including monthly interest rates, repayment amounts and dates, and the remaining term of the mortgage. You can even apply for mortgages using

Banks are taking note too, investing billions in fintech solutions that accommodate market demands. Branches are closing at a quicker rate than previously while mobile banking use continues to rise, being one of the most commonly used financial technologies for banking processes.  The mortgage sector is also set for a shakeup as more and more fintech companies begin offer customers more competitive rates than the traditional banks.

Cloud Computing

Cloud technology is another driving force behind the rise of fintech. It has offered countless financial businesses the chance to overhaul their IT systems to provide better services and improve efficiency of back-end operations.

The core concept of cloud computing is decentralizing storage systems onto cloud networks. This makes them accessible from any device around the world, much more secure thanks to advanced security processes, and quicker and easier to upgrade.

In a financial setting, this means more detailed financial data available throughout the world that is easier to access. For instance, banks have used this to let customers check their accounts from mobile devices while being safe in the knowledge their data is secure.

Both financial businesses and their clients greatly benefit from cloud computing, such as increased productivity, scalable software solutions, streamlined user experiences, and more.

Blockchain Technology

The technology behind cryptocurrencies like Bitcoin, blockchains are one of the newest forms of fintech to emerge but one that could have the most far-reaching effects.

Providing a decentralized currency that is not regulated by a central financial organization, blockchains and crypto currencies could disrupt countless financial processes that use traditional methods, such as making it quicker and easier to complete cross-border payments or finalising transactions without needing a middleman.

Many financial services could be disrupted by blockchain technology, with banking institutions investing in this technology, showcasing that the massive growth of fintech shows no signs of slowing down any time soon.  

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