FinTech is the real buzzword these days. We believe that many start to hear this word more and more often and still remain puzzled what FinTech really means. What is it about? How important is it? Why do people talk so much about it? Well, let’s learn about FinTech together
What is FinTech?
FinTech doesn’t mean “technology finale” (That doesn’t make sense, right?) The word derives from two key words – FINancial and TECHnology. The direct translation would mean a financial technology.
Using technology for financial management can be done in many ways. In my opinion, outstanding financial technologies are as follows:
Stock/Investment – such as stock and investment unit sales application or stock trend analysis technology, such as Jitta, Stockradars and Finnomena app.
Online payment and online wallet – this service is widely adopted, such as Apple Pay, TrueMoney, PaySbuy, etc.
Online fundraising – Better known as “Crowdfunding”, this is a business plan presentation to convince people worldwide to give them funding. Some of the popular ones are Kickstarter or Indie Gogo in the global market and Asiaola/Duriancorp.com in Thailand.
This is not all. There are many more, such as online credit offering and BitCoin exchange. Today, there are so many online financial service providers. Jamie Dimon, CEO of JP Morgan Chase once said, “Silicon Valley startups are coming to eat Wall Street’s lunch.” This means startups from Silicon Valley will soon compete with banks to get more market share.
Why FinTech Becomes a Boom Now?
Applying technology with money and investment has, in fact, long been existed (e.g. ATM, credit card and stock trading program). More recently, these financial technologies have been further developed, very slowly in the beginning as it leaves quite a big time gap between each new technology.
Today, technology is more important as given the higher capability of smartphones, great Internet network, Social Media and tech startup boom. More financial technology innovations are mushrooming quickly these days and they do change consumers’ behaviors a lot.
The global economic development plan, Thailand 4.0 policy that aims to establish digital economy. FinTech has played more and more important role. If one fails to adjust and does not study fast enough, he/she may be left behind.
What’s the Impact from FinTech?
If you read to this line and still wonder what FinTech has to do with our life, let me explain this way. FinTech does have a direct impact on us all no matter who you are, a consumer or a service provider. Like other new technology, new financial technology will change our spending behavior. In the past, we might only rely on banks. Today, we can shop around from FinTech service providers. In the past, we might have to visit banks very often. Today, we can do things via application. Life is made easy then.
The convenience brought to us by technology has enabled us to spend more. (Have you ever done online shopping without knowing while reading interesting things on your mobile phone? Making payment via an app is that easy.) When spending is made easy, more money will go into the economy. The overall economy will be expanded. New channels are introduced for new investors. Existing financial service providers, be it banks or securities companies, have to speed up and develop themselves very fast before the new comers steal their market.
In the end, those won win is consumers like us. The competition in FinTech segment will bring to us more choices and better price option.
Well, how do you feel now about FinTech after reading all this? Do you have better understanding of this buzzword? As you may realize, we are living in the world where technology moves fast and grows in leap and bound. In the future, the world will move even faster, in terms of financial service and others. Although we are flooded with information and trends, we should not give up new technology and keep monitoring closely at least for the better quality of life. “Don’t’ fear technology. Embrace it.” Grow with technology. Understand technology. Then, technology will become our good friend. See you next time!