TMCnet Feature
October 19, 2020

Blockchain and other technologies that are changing fintech scene

There’s no doubt that technology is changing everything around us, from communicating with people across the globe to buying your favourite tea and having it delivered to your doorstep in a day (sometimes even a matter of hours). Financial services are not falling behind, you can check your bank statement, transfer money and even apply for small business loans online with only a few clicks.

In the middle of a pandemic these services have grown stronger: they have new applications, the safety for users is better and the adoption of financial technology is becoming mandatory.

Before and after

Financial technology (Fintech) services aren’t a new thing that came out of nowhere as an answer to a pandemic lockdown. The words blockchain or bitcoin have been roaming around our vocabulary for some time now.

The truth is that more and more people are trusting the safety —and comfortability— of using the famous fintechs. But how much do you really know about this technologies?

Well, here’s a nut graph: the blockchain technology was invented back in 1991 by Stuart Haber and W. Scott Stornetta as a way to stamp a digital chain to a document so it’s metadata, the basic information of when, where and who created it, couldn’t be modified. And since then, it’s applications and developments have escalated.

Now, this technology is used by banks to ensure that their digital operations can be perfectly traced and uncorrupted. No human error, no lying to the institution. This technology allows them to have absolute knowledge of where the money is coming from and where it went. And the trend it’s getting stronger. According to PwC’s study Financial Services Technology 2020 and Beyond: Embracing disruption, the past year alone, blockchain developers and operators raised over 365 million dollars in funding, adding to the history of over a billion dollars since its creation to 2016.

If you take into account the development of technology in Artificial Intelligence (AI) that can create investment portfolios such as an ETF and learn about your online behaviour to create better, faster and easier products for you, it’s safe to say the future is not near, it’s right here, happening in front of our eyes.

Financial Technology that you can use in your favor

Fintechs affect the way people use, track, earn and get money, it’s not just your regular bank with an app. When you apply for online loans, there’s probably not a human checking up your banking score or looking at your ID. Mostly, different programs do this and have a very fast response to an application.

This is why you can apply for online loans without even going to an office or dealing with bankers. But those aren’t the only advantages:

  • Regulations have made the online loans applications safer and unbiased.
  • Financially lighter company operations so you have cheaper loans.
  • Fast response to digital attacks and a perfectly planned traceability.
  • More financial services in a single place (app or web).
  • Easier and faster transactions between different financial institutions.

Still, you have to be careful with your information, or even more than before, no matter how safe these technologies are, there are humans who will try to find ways to steal your information. Skimming, phishing and plain old phony phone calls are still something you should be very aware of.

Fintechs make it possible to bring financial solutions to more people than before, this opens the door to many possibilities that didn’t exist with the old system. If you want to apply for online loans, the first step is to get in touch with a company like Camino Financial, who understands the reality we live in and believes the opportunities should be for anyone to grab.

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