Financial Future Is Now, Right At Your Fingers.

Nowadays, technology has played a vital role in our life. In fact, every aspect, every day, every way we turn our head to; there is technology everywhere. Which is inevitable that the financial world is now in an evolution phase from traditional to more modern and convenient financial services. Financial Technology is a good example of the rise of a new dawn in the world of finance.

Financial Technology or Fintech for short is a financial service that combined technology and financial services. Fintech adopts and improves the technology of financial services ranging from mobile financial service to cryptocurrency. Which the ultimate goal of establishing Fintech is to achieve efficient, effective, and more convenient services for humanity. Moreover, when people heard about Fintech they would be thinking about the basic of transferring and receiving money on apps such as Mobile banking app, Paypal, and other money transfer applications. However, Fintech is a revolution that is much more than just a more convenient payment solution. These below are the sub-division that merge and form the concept of Fintech:

1. Crowdfunding Platforms

Crowdfunding platform such as Kickstarter and GoFundMe act as an intermediary between the investor and creator; by investor help them build a connection as well as supporting and investing in the project. For creators, it is better to go straight to the investor rather than getting a loan from the banks as it does guarantee you that there will be some people who are interested in their product.

2. Blockchain & Cryptocurrency

Cryptocurrency and Blockchain is one of the most iconic and popular things when people talking about Fintech right now.

Cryptocurrency refers to virtual currency, it can be trade and exchange from one individual to others. Cryptocurrency can not be track and trace as the system is being encrypted and lock into a chain of information, once the new transaction came in the whole information on the chain will also change; making it almost impossible to hack (Telegraph 2017). However, by using cryptocurrency it could benefits individuals as there will be no transfer fees between banks as well as the transaction can not be hacked or interfered.

3. Mobile Payment

Mobile Payment allows people to transact and transfer money to their friends and family including paying their rent, bills, and shopping bills. In fact, according to the research, the mobile payment industry has sky-rocketed to over $1 trillion in revenue during 2019.

4. Stock trading & AI advice applications

Today, Artificial Intelligence (AI) has disrupted a majority of almost every industries, including Finance and Investment industry. AI stock trading uses advance mathematics. Robo-Advisor helps the middle-class individual investor to access a piece of advice from the professionals at lower opening balance as well as lower cost than the traditional financial advisor (Haynes 2019).

Reflection

In my perspective, the future of financial services which combined both technology and finance will provide more efficient, effective, and convenient services to the customer as well as providing an alternatively cheaper finances choice. Which will ultimately stimulate the economy including microeconomic and macroeconomic.

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References

Haynes, Adam. 2019. "Robo-Advisor Vs. Financial Advisor". Proquest.

https://search-proquest-com.dbgw.lis.curtin.edu.au/docview/2312714888/2978445A8CE14C97PQ/4?accountid=10382.

"What Is Cryptocurrency, How Does It Work And What Are The Uses?". 2017. Proquest. https://link.library.curtin.edu.au/gw?url=https://www-proquest-com.dbgw.lis.curtin.edu.au/docview/1924719234?accountid=10382.

"What Is Fintech? | CNBC Explains". 2020. Youtube.

https://www.youtube.com/watch?v=-EoNrg_DR3s&t=1s.