Those who are new to this word….Fintech is not the name of a company. The term fintech refers to the synergy between finance and technology, which is used to enhance business operations and delivery of financial services.

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Fintech can take the form of software, a service, or a business that provides technologically advanced ways to make financial processes more efficient by disrupting traditional methods.

Some of the most prominent applications of fintech are mobile payments, automated investment apps (robo-advisors), cryptocurrency, online lending businesses, and crowdfunding platforms.

Technologies that Contribute to Fintech

1. Artificial Intelligence (AI) and Machine Learning (ML) - Artificial Intelligence (AI) and Machine Learning (ML) are some of the most used technologies in fintech, offering the potential to play an even bigger role in the finance industry as developments continue. Some of the fintech applications of AI and ML include credit scoring, fraud detection, regulatory compliance, and wealth management, among others.
2. Big Data and Data Analytics - Data from customers and markets is of high value to fintech companies. Through large datasets, information about consumer preferences, spending habits, and investment behavior can be extracted and used to develop predictive analytics.
3. Robotic Process Automation (RPA) - Robotic Process Automation (RPA) refers to the process of assigning manual, repetitive tasks to robotics instead of humans in order to streamline workflows in financial institutions. The most widespread applications of RPA in finance are:
   • Statistics and data collection
   • Regulatory compliance management
   • Communication and marketing through e-mails and chatbots
   • Transaction management
4. Blockchain - Blockchain technology is being adopted at a large scale in the financial industry, primarily due to its capability to securely store transaction records and other sensitive data. Each transaction is encrypted, and the chances of successful cyber-attacks are relatively low when blockchain technology is employed. Blockchain technology is also the backbone of many cryptocurrencies.

Never thought that finance and technology will such such beautiful amalgamations, right?

We will learn more about fintech in my next blog!!