Do you ever think about why people send money to India? In this article, we will throw light on the emergence of FinTechs and Cryptocurrency and its providers along with their respective backgrounds.
The evolution in science and technology has brought about many changes in the ways people lead their lives including how people commute, where people reside, how people conduct themselves at workplaces and how they complete their financial needs and requirements.
And it does not stop here. Rather the way continuous technological advancement has affected financial behaviours is unique in its own ways.
The latest technology-driven addition in the sphere of finance and economies is Fintechs and Cryptocurrency.
Let’s now see what FinTechs are and what their purpose is.
FinTechs:- Financial Technology (FinTech) helps improve and automate the usage of financial services and what they deliver. Deep inside FinTech is used to help business owners, companies and consumers with better management of their financial operations and process by using specific software (designed only for money transfer to India and other developing countries) and algorithms used either on computers or now increasingly on smartphones.
Financial Technology covers all the latest innovation that is being witnessed such as transactions through technology-oriented methods. The emergence of FinTech has helped the transfer of remittances people send back home from overseas by providing convenience in terms of cost-effectiveness and speed etc.
Now let’s see a few core operations of FinTechs.
Cryptocurrency:- (we will discuss it at length later).
Blockchain technology:- It includes Ethereum, a Distributed Ledger Technology (DLT) which maintains records on several computers without a central ledger.
Smart contracts: – These use computer programs to automatically execute contracts between buyers and sellers.
Open banking: – This allows third parties access to bank data to build applications to create a connected network of financial institutions and third-party providers.
Insurtech:- This aims to streamline and simplify the insurance industry.
Regtech:- This aims to help financial services guard against money laundering.
Robo-advisors: – This uses Artificial Intelligence (AI) to dispense automated advice on investments to minimize cost with viable accessibility.
Unbanked segments: – FinTech also helps the poorer segments of society, which do not have bank accounts, to have viable access to financial services offered by different financial institutions. If want to transfer money to India but do not have a bank account, you can send money to India online.
Cybersecurity: – FinTechs also provide security against Cybercrimes and proliferation.
With this, FinTechs will be the new normal in the near future given the technological innovation.
Now let’s take a look at Cryptocurrency.
Cryptocurrency: – Cryptocurrencies, with having little inherent value, are used to price the value of other assets. Bitcoin is a prime example of Cryptocurrency considered to be the first digital asset.
Digital assets are also known as Crypto assets, and they are the digital representation of the value of those digital assets through cryptography or blockchain. You can send money to India in the form of Crypto
Crypto assets or digital assets are categorized into the following main types: cryptocurrencies, crypto commodities and crypto tokens.
With the understanding of cryptocurrencies and FinTechs, comes Blockchain technology.
Let’s take a brief look at what blockchain technology is.
The technology: – The global financial crunch of 2008 pushed a man named Satoshi Nakamoto to develop a protocol for a peer-to-peer electronic cash system. This protocol, soon after its launch, became the foundation for distributed ledgers which are also known as Blockchains.
An example of a spreadsheet will suffice to understand the concept of blockchain which anyone from around the world can access. It does not have a central database. Blockchain is public because it resides on a network of computers provided by volunteers from around the globe, and does not belong to and is owned by a single institution.
Now let’s take a look at what FinTech and Cryptocurrencies have on offer.
Applied blockchain: – It develops private blockchain applications for the clients.
Ascribe: – It helps you take control of your digital intellectual property and share your digital creations with the world.
Bitnet technologies: – It provides a digital commerce platform to help enterprise-level merchants accept bitcoin payments.
Coinbase: – It provides a digital currency wallet service to buy and sell bitcoin.
Chain: – It builds tools to exploit blockchain technology that is underlying bitcoin.
R3: – It has signed up about 30 banks to develop projects with technology using bitcoin in a collaborative effort.
Xapo:- It helps rich investors store bitcoin on encrypted servers spread across the globe by offering digital wallets used by third-world consumers to shop online.
Conclusion: – From all of the above we can safely conclude that the future belongs to FinTechs and cryptocurrencies and all the holes that exist in these technologies, for now, will be plugged with the passage of time and as these technologies seep more into our day-to-day lives. Online money transfer to India & other developing nations from developed countries is the best option for international money transfers.