Technology has rapidly evolved from needing a full room to run a computer to having it as a pocketable rectangular slab. It has impacted many industries and sectors, and at this point, not utilizing it is simply a stupid decision. Even traditional and age-old sectors of the industry have begun adapting it to a successful extent at that. From medicine to real estate, from education to finance, technology has improved the general user experience and workflow.
Among those that benefited the most is the financial industry. Whereas transactions from years past took days or weeks to process (everyone’s familiar with the phrase ‘ten to fifteen business days’), financial transactions of today can happen with a touch of a finger and be over in five seconds. Technology has aided and melded with the finance industry so much that a new term was born from their allegiance: Financial Technology or fintech.
What is Fintech?
Fintech was born out of the union between finance and technology. It refers to using technology to improve operations or services. Fintech can either be a software that allows users, both client and service provider, a more efficient experience. Or it can be a tool that assists in financial analysis, particularly helpful for traders and economists. In some cases, it can even take the form of artificial intelligence used for fraud detection, compliance to regulation, and other tasks that require high processing power.
Everyday users to the most esoteric of financial professionals utilize fintech in their everyday lives. But how does it affect the average joe? How does it present itself to the consumer end of the spectrum? You’ll be surprised by how much it’s prevalent now.
You’ve probably heard of crowdfunding. You’ve probably even used crowdfunding to take advantage of a cool product and a good deal. If you haven’t yet, then it’s an interesting concept: entrepreneurs with a solid product plan can show their idea to the world and receive funding from those interested. This transcends the borders of nationalities as everything is achieved via the Internet, making crowdfunding popular worldwide. This sudden boom of crowdfunding is all thanks to the innovations derived from fintech.
On the more everyday side of things, among fintech’s most used achievement is the common convenience we commonly call online banking. Just a few years ago, banking still took quite some time and effort. Transferring money still meant going to a bank or an ATM, and finding out your remaining balance still needed at least 15 minutes to achieve, but all of these are but memories now. Thanks to the wonders of modern technology, we can simply access our banking information through smartphones or computers. We can do banking transactions as if we are in a bank as well—transferring money from one account to another, receiving money from someone else, or even making payments to utility bills or mortgage loans. These tasks are very convenient to accomplish now, but they sure weren’t very convenient a few years ago.
Security and Fraud Prevention
When online transactions first started, there was always the fear of fraud. Many people felt like online banking wasn’t secure, that your data might be stolen. They weren’t wrong, as this can happen, but technology has progressed far enough for online transactions to be a relatively safe thing to do. Fintech has developed to the point of being able to instantly investigate whether a fraudulent transaction was made or if online theft occurred. Online transactions are now deemed as safe as physical financial transactions are. Of course, proper precautions must be taken, but it’s not as crazy as one might seem.
Investing was once thought of as something that rich people do. However, as more and more people become financially literate, investments are becoming common. And not just stock market investing, but a myriad of different kinds: mutual funds, forex trading, day trading, etc. Fintech has broken down the barrier of investing that prevented many people from joining in the first place. It has made investing accessible, both financially and literally, as not only the initial required capital to get started the lowest it has been in years, it’s never been easier as well. All you need now is to open an app, interact with the interface provided, and voila! You’re on your way to set yourself up to financial freedom.
Fintech has developed and improved a lot that not only did it make things easier for most people, but it also opened up a lot of avenues and opportunities—especially in investing.
Teknolojia imebadilika haraka kutoka kuhitaji chumba kamili cha kuendesha kompyuta hadi kuwa na kompyuta kama slab ya mstatili inayoweza kufungwa mfukoni. "Imeathiri viwanda vingi na sekta, na kwa wakati huu, kutotumia ni uamuzi wa kipumbavu. """ Hata sekta za jadi na za zamani za sekta hiyo zimeanza kuirekebisha kwa kiwango cha mafanikio. Kutoka kwa dawa hadi mali isiyohamishika, kutoka kwa elimu hadi fedha, teknolojia imeboresha uzoefu wa jumla wa mtumiaji na mtiririko wa kazi. Kati ya wale waliofanikiwa zaidi ni sekta ya fedha. Wakati shughuli za miaka ya zamani zilichukua siku au wiki kusindika (kila mtu anafahamu maneno "siku kumi hadi kumi na tano za biashara"), shughuli za kifedha za leo zinaweza kutokea kwa kugusa kidole na kumaliza katika sekunde tano. Teknolojia imesaidia na kuunganishwa na tasnia ya fedha sana kwamba neno jipya lilizaliwa kutoka kwa uaminifu wao: Teknolojia ya Fedha au fintech. Fintech ni nini? Fintech ilizaliwa kutokana na muungano kati ya fedha na teknolojia. Inarejelea kutumia teknolojia ili kuboresha shughuli au huduma. Fintech inaweza kuwa programu ambayo inaruhusu watumiaji, mteja na mtoa huduma, uzoefu bora zaidi. Pia inaweza kuwa chombo ambacho husaidia katika uchambuzi wa kifedha, hasa muhimu kwa wafanyabiashara na wachumi. Katika baadhi ya kesi, inaweza hata kuchukua fomu ya akili bandia kutumika kwa ajili ya udanganyifu kugundua, kufuata kanuni, na kazi nyingine ambayo zinahitaji nguvu ya juu ya usindikaji. Watumiaji wa kila siku kwa wataalamu wa kifedha wa kawaida hutumia fintech katika maisha yao ya kila siku. Lakini hilo linaathirije mtu wa kawaida? Inajitokezaje kwa watumiaji wa mwisho wa wigo? Utashangaa jinsi ilivyoenea sana sasa. Labda umesikia juu ya ufadhili wa umma. Labda hata umetumia ufadhili wa umati ili kutumia bidhaa nzuri na mpango mzuri. Kama bado haujafanya hivyo, basi ni dhana ya kuvutia: wajasiriamali wenye mpango thabiti wa bidhaa wanaweza kuonyesha wazo lao kwa ulimwengu na kupokea fedha kutoka kwa wale wanaopendezwa. Hii inazidi mipaka ya utaifa kama kila kitu ni mafanikio kupitia mtandao, kufanya crowdfunding maarufu duniani kote. Hii boom ghafla ya crowdfunding ni wote shukrani kwa ubunifu inayotokana na fintech. Katika upande wa kila siku wa mambo, kati ya mafanikio ya fintech kutumika zaidi ni urahisi wa kawaida sisi kawaida wito benki online. Miaka michache tu iliyopita, shughuli za benki zilikuwa bado zinahitaji wakati na jitihada nyingi. Kuhamisha pesa bado ilimaanisha kwenda benki au ATM, na kugundua usawa wako uliobaki bado ulihitaji angalau dakika 15 kufikia, lakini haya yote ni kumbukumbu tu sasa. Kwa sababu ya teknolojia ya kisasa, tunaweza kupata habari za benki kupitia simu zetu za mkononi au kompyuta. Tunaweza kufanya shughuli za benki kama vile tuko benki pia - kuhamisha pesa kutoka akaunti moja hadi nyingine, kupokea pesa kutoka kwa mtu mwingine, au hata kufanya malipo ya bili za huduma au mikopo ya nyumba. Kazi hizi ni rahisi sana kutimiza sasa, lakini wao uhakika hawakuwa rahisi sana miaka michache iliyopita. Usalama na Kuzuia Udanganyifu Wakati shughuli za mtandaoni zilipoanza, daima kulikuwa na hofu ya udanganyifu. Watu wengi walijisikia kama benki ya mtandaoni haikuwa salama, kwamba data yako inaweza kuibiwa. Hawakuwa na makosa, kama hii inaweza kutokea, lakini teknolojia imeendelea mbali kutosha kwa ajili ya shughuli za mtandaoni kuwa kitu salama kufanya. Fintech imesitawi hadi hatua ya kuweza kuchunguza mara moja ikiwa shughuli ya udanganyifu ilifanywa au ikiwa wizi wa mtandaoni ulifanyika. Sasa shughuli za mtandaoni zinaonwa kuwa salama kama vile shughuli za kifedha za kimwili. Bila shaka, tahadhari zinazofaa lazima zichukuliwe, lakini si jambo la kipumbavu kama vile mtu awezavyo kuonekana. Wakati mmoja watu walifikiri kwamba watu matajiri tu ndio wanaofanya biashara ya kuwekeza. Hata hivyo, kadiri watu wanavyozidi kuwa na ujuzi wa kifedha, uwekezaji unakuwa jambo la kawaida. Si tu uwekezaji wa soko la hisa, lakini pia aina nyingi za uwekezaji: fedha za pamoja, biashara ya forex, biashara ya siku, na kadhalika. Fintech imevunja kizuizi cha uwekezaji ambacho kimewazuia watu wengi kujiunga na kwanza. Imefanya uwekezaji uweze kupatikana, kifedha na kihalisi, kwani sio tu mtaji wa awali unaohitajika kuanza ni wa chini zaidi kwa miaka, haijawahi kuwa rahisi pia. Yote unahitaji sasa ni kufungua programu, kuingiliana na interface zinazotolewa, na voila! Wewe ni juu ya njia yako ya kuweka mwenyewe juu ya uhuru wa kifedha. Fintech imeendelea na kuboreshwa sana ambayo si tu ilifanya mambo kuwa rahisi kwa watu wengi, lakini pia ilifungua njia nyingi na fursa - haswa katika kuwekeza.