Financial Technology or Fintech refers to technology-based solutions to financial problems like how to send money to Philippines from developed countries? We, in this article, will walk you through the different eras of Fintech evolution.
Era 1 (1886-1967):- In this era dawned financial globalization, and the world came to know about technologies such as telegraph, railroads, and steamships, which allowed quick transmission of financial information across borders. Highlights of this epoch were transatlantic cable (1866) and Fedwire in the USA (1918) and the first electronic fund’s transfer based on the now-redundant technology such as telegraph and Morse code. Credit cards were introduced in the 1950s. However, money transfer to Philippines and other parts of the world was not easy these days.
Era 2 (1997-2008):- In this era, a major shift took place, and financial institutions changed from analog to digital. In this was launched the first handheld calculator, and also Barclays Bank installed its first ATM in 1967. In the 1970s was established NASDAQ (the world’s first digital exchange) which set the course for how financial markets operate today. SWIFT (Society For Worldwide Interbank Financial Telecommunications) was established in 1973. It is the most commonly used communication protocol between financial institutions across the globe for transferring large amounts across borders. In the 1980s, bank mainframe computers were introduced, and the world entered the era of online banking. It flourished throughout the 1990s with the help of internet and E-commerce business models, which revamped people’s perception of money and their relationship with financial institutions. 2008’s global financial crisis saw the end of this era.
Era 3 (2008-present):- The global financial crisis of 2008 shook the trust of people in the existing and traditional financial institutions such as banks, and people devised plans to create new players. In this backdrop, the release of Bitcoin can be understood clearly, which impacted the financial world significantly, and it was soon followed by a number of different Cryptocurrencies across the world. It was followed by a Crypto crash in the year 2018. Online money transfers to Philippines started to grow during this era.
An extremely important development in this era is that of the launch of smartphones which have brought about a humongous change in the way people conduct financial activities. With the advent of smartphones were introduced Google Wallet in 2011, followed by Apple Pay in the year 2014.
Fintech today: – in the current times, the two countries with the highest Fintech usage are China and India with 69% and 52% respectively, which amply shows how these countries understand the importance of Fintech and the fact that the sooner they resort to it the better. Here, it must also be kept in mind that the average global adoption of Fintech is 33%; whereas, 46% for the emerging markets including UK, Brazil, Spain, Mexico, USA, Germany, etc.
Conclusion: The ever-evolving technology is impacting the financial markets constantly. With each passing day, we see newer mobile apps and service providers squeeze time and space to help customers conduct financial transactions. So much so that you can easily send money to Philippines online. Apart from that, a distant and far-flung country such as the Gambia, Nepal just a few clicks away today!