WHAT IS FINANCIAL TECHNOLOGY?

IMPACT OF MONETARY POLICY ON REMITTANCES

Financial technology (fintech) has been defined in various ways. It can be characterized as “innovations that use software to automate money-handling tasks.”

Fintech differs from traditional banking because the money moves through the system electronically, and it doesn’t require a human operator. Fintech includes technologies such as artificial intelligence, blockchain, cloud computing, biometrics and cryptography which are used for automating manual processes or improving outcomes of decision making. The field can also include any innovation that affects finance regardless of whether it uses software or not. Startups providing fintech products often focus on security and convenience by leveraging new computer languages like javascript or frameworks like Angularjs to make money transfer to Gambia or anywhere in the world easier.

Financial technology means the new technology that aims to improve the delivery and use of financial services. ​​​The short term “FinTech” is commonly used. FinTech is used to help businesses as well as consumers to better manage their financial operations. In FinTech, specialized software and algorithms are used on computers and especially smartphones. FinTech is widely used by companies to improve their way of providing services to their customers.

Since its development, Fintech has broadened its field by including different sectors and industries such as education, fundraising, investment management, etc. Additionally, Fintech also includes the development and use of cryptocurrencies such as bitcoin. Bitcoin is the most well-known segment of FinTech. It has grabbed my attention within a small span of time.

Broadly speaking, the term FinTech today is the name of innovation in the ways of how people transact business. The foremost contribution is digital money. Since the evolution of the internet and smartphone, FinTech has shown a rising boom. Simply, we can say that FinTech is the introduction of a computerized system to the back office of banks or trading firms. All the technological advancements contributing to boosting the financial market come under the arena of FinTech. Other financial activities like money transfer, depositing money, and raising money for business startups are common examples of financial technology.