What Is Fintech And Why Is It Important?

Fintech means “finance” and “technology” and refers to any company that uses technology to improve or automate financial services and processes. The term encompasses a rapidly growing industry that serves the interests of both consumers and businesses in a variety of ways. From mobile banking and insurance to cryptocurrencies and investment apps, fintech has a seemingly endless array of applications. The industry is huge – and will continue to expand in the coming years.

One driving factor is that many traditional banks are supporting and adopting technology. They are actively investing in, acquiring or partnering with fintech startups because it’s easier to give digitally oriented customers what they want while advancing the industry and staying relevant.

What is a fintech company? Fintech companies integrate technologies (such as AI, blockchain, and data science) into traditional financial sectors to make them safer, faster, and more efficient. Fintech is one of the fastest-growing technology sectors, with companies innovating in nearly every area of finance, from payments and lending to credit scoring and stock trading.

How does fintech work? Fintech is not a new industry, but one that has evolved very quickly. Technology has always been part of the financial world to some degree, whether it’s the introduction of credit cards in the 1950s or ATMs, electronic trading systems, personal finance apps and high-frequency trading in the decades that followed. What lies behind financial technology varies from project to project, application to application. However, some of the latest developments use machine learning algorithms, blockchain and data science to enable everything from credit risk processing to hedge fund management. In fact, there is now an entire subset of regulatory technologies called “regtech” that aim to navigate the complex world of compliance and regulatory issues of industries like, you guessed it, fintech.

As the fintech industry has grown, so have cybersecurity concerns in the fintech industry. The massive growth of fintech companies and marketplaces on a global scale has made vulnerabilities in fintech infrastructure increasingly apparent, while also making them a target for cybercriminal attacks. Fortunately, technology is constantly evolving to minimize existing fraud risks and mitigate new threats that continue to emerge.

Fintech Examples and Applications. Although the industry conjures up images of startups and industry-changing technologies, traditional companies and banks are also steadily adopting fintech services for their own purposes. Here is a quick look at how the industry is both transforming and improving some areas of finance. Banking Mobile banking is an important part of the fintech industry. In the world of personal finance, consumers have increasingly demanded easy digital access to their bank accounts, especially from a mobile device.

Most major banks now offer some type of mobile banking capability, especially with the rise of digital-first banks or “neobanks.” Neobanks are essentially banks without physical branches that offer checking, savings, payments and lending services to their customers on a fully mobile and digital infrastructure. Some examples of neobanks include Chime, Simple, and Varo. Cryptocurrencies and Blockchain In parallel with fintechs, cryptocurrencies and blockchain have emerged.

Blockchain is the technology that enables the mining of cryptocurrencies and the existence of marketplaces, while advances in cryptocurrency technology are due to both blockchain and fintech. Even though blockchain and cryptocurrency are unique technologies that fall outside the realm of financial technology, both are necessary in theory to create practical applications that advance financial technology. Some key blockchain companies you sh ould know about are Gemini, Spring Labs, and Circle, while examples of companies that specialize in cryptocurrencies include Coinbase and SALT. Investment & Savings Fintech has led to an explosion in the number of investment and savings apps in recent years. More than ever, the barriers to investing are being broken down by companies like Robinhood, Stash, and Acorns. While these apps differ in their approach, they all use a combination of savings and automated small-dollar investment methods, such as instant round-up of deposits on purchases, to introduce consumers to the markets.

Machine Learning and Trading. The ability to predict how markets will perform is the Holy Grail of the financial world. With billions of dollars at stake, it’s no surprise that machine learning is playing an increasingly important role in financial technology. The power of this AI subfield lies in its ability to run massive amounts of data through algorithms designed to identify trends and risks, giving consumers, businesses, banks and more organizations a more informed understanding of investment and purchase risks at an earlier stage.

Payments. Moving money around is something fintech is very good at. The phrase “I’ll Venmo you” is now a replacement for “I’ll pay you later.” Venmo, of course, is the most popular platform for mobile payments. Payment service providers have changed the way we all do business. It’s easier than ever to send money digitally around the world. In addition to Venmo, popular payment service providers include Zelle, Paypal, Stripe and Square. Fintechs are also overhauling lending by simplifying risk assessment, speeding up approval processes and making credit more accessible. Billions of people around the world can now apply for credit through their mobile devices, and new data points and risk modeling capabilities are extending credit to underserved populations. In addition, consumers can request credit reports multiple times a year without dropping their score, making the entire credit world more transparent for everyone.

Notable credit companies include Tala, Petal, and Credit Karma. Insurance Although insurtech is quickly becoming its own industry, it still falls under the fintech umbrella. Many fintech startups are partnering with traditional insurance companies to automate processes and expand coverage. From mobile car insurance to wearables for health insurance, the industry is on the verge of a plethora of innovations. Some insurtech companies to keep an eye on include Oscar Health, Root Insurance and PolicyGenius. Fintech Trends for 2021Fintech is an emerging industry with seemingly endless opportunities to improve our financial systems.

Some fintech trends we will see are: The rise of robo-advisors in stock trading, the use of blockchain in anti-money laundering, the introduction of alternative credit reporting, and the decentralization of global payments.

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Anthony Aries

How To Analyze Crypto Currency Aka Crypto Analysis

How To Analyze Crypto Currency Aka Crypto Analysis

When it comes to fundamental analysis of cryptocurrencies, while the approach is similar to traditional markets, you can not really use proven tools to value crypto assets. To perform a proper FA in cryptocurrencies, we need to understand where they get their value from.

Done correctly, fundamental analysis can provide invaluable insight into cryptocurrencies in a way that technical analysis cannot. The ability to distinguish the market price from the “true” value of a network is an excellent skill for trading. Of course, there are things that TA can tell us that FA cannot predict. That’s why many traders today use a combination of both.

Trading assets as volatile as cryptocurrencies requires some skill. Choosing a strategy, understanding the wide world of trading, and mastering technical and fundamental analysis are practices that come with a learning curve.

Cryptocurrency networks can not really be evaluated with the same perspective as traditional businesses. If anything, the more decentralized offerings like Bitcoin (BTC) are more comparable to commodities. But even with the more centralized cryptocurrencies (e.g., those issued by organizations), traditional FA indicators can not tell us much.

For cryptocurrencies with declining issuance plans, this is an interesting metric to explore. The main Proof of Work (PoW) blockchains offer a block reward. For some, it is composed of a block subsidy and transaction fees. The block subsidy decreases periodically (on events such as Bitcoin being cut in half).

The hash rate is often used in proof of work cryptocurrencies as a measure of the health of the network. The higher the hash rate, the more difficult it is to successfully perform a 51% attack. However, an increase over time may indicate a growing interest in mining, likely due to low overhead costs and higher profits. Conversely, a decrease in the hash rate indicates that miners are going offline (“miner capitulation”) because it is no longer profitable for them to secure the network.

Analysis of the cryptocurrency Bitcoin
Why should beginners start with Bitcoin? If you are new to the world of blockchain and cryptocurrencies, it can be overwhelming to filter out reliable cryptocurrencies from unreliable ones. Several cryptocurrencies popularly referred to as “meme coins,” such as Dogecoin, Shiba Inu, and Poocoin, have popped up recently and cost newcomers a large chunk of their investments. On the other hand, Bitcoin is a much safer (if not the safest) cryptocurrency to invest in. Here are some more reasons to trust Bitcoin:

1. Decentralized cryptocurrency

2. Deflationary token

3. Publicly available whitepaper

4. Proof of Work (PoW) mechanism

5. Crystal clear tokenomics

Dear Friends, Thanks For Your Support. I invite you to purchase this book Crypto Analysis to boost your understanding on how to analyze cryptocurrency, you can click the “Buy On Amazon Button”. Or you can view a preview by clicking “Free Preview” below. Enjoy reading Dear Friends.

A sincere Thanks to You
Anthony Aries

Blockchain For Business – Practical Business Applications

Blockchain For Business – Practical Business Applications

Applications of Blockchain for Business In all industries around the world, blockchain is helping to transform business. Greater trust leads to greater efficiency by eliminating duplication of effort. Blockchain is revolutionizing the supply chain, food distribution, financial services, government, retail and more. Blockchain Ensures Safer Food We all eat – and we have all doubted the safety or freshness of food at one time or another. What if we could replace those doubts with insights into every step from farm to fork? Many companies are now doing just that by sharing and leveraging data from IBM Food Trustâ„¢, powered by the IBM blockchain platform. Discover how growers, processors, wholesalers and retailers are making food safer, extending shelf life, reducing waste and providing better access to shared, secure information that affects us all. IBM Food Trust Blockchain tracks every step of shipping Think about everything you used today. How did it get here? Today’s supply chain is a complex network of relationships, planning, systems and data. Even the smallest error can cause delays that have huge ripple effects. By digitizing and automating paperwork across the supply chain, IBM Blockchain helps shippers, ports, customs, logistics providers, banks, insurers and others better manage documents across companies and borders – all in real time and with absolute precision. Learn more at IBM Blockchain for the Supply Chain Blockchain builds trust everywhere Whether between people or organizations, relationships thrive when there is more trust. From jewelry to insurance to food, IBM Blockchain can take that trust to a whole new level by helping parties transacting with each other validate and share immutable transaction records in a private, distributed ledger. This shared record of truth leads to less paperwork and fewer disputes, happier customers, and entirely new ways of doing business.

Related Solutions. Blockchain Platform The award-winning IBM Blockchain Platform offers the most comprehensive suite of blockchain software, services, tools, and sample code available for Hyperledger Fabric. It provides everything you need to create, test, control, and manage a working blockchain network in a variety of cloud environments. Learn more about IBM Blockchain Platform Blockchain Consulting We have over 500 client engagements and more than 1,600 technical and industry experts. Find out why IBM Blockchain Services is the leading provider of services for your blockchain journey. Blockchain Consulting Blockchain for Food Supply IBM Food Trust is the only network of its kind that connects participants across the food supply through an approved, permanent, and shared record of food system data. You can increase food safety, create new efficiencies and contribute to your bottom line. IBM Food Trust TradeLens helps monitor global container logistics. More than 150 exporters, importers, freight forwarders and customs authorities around the world now collaborate on an open and neutral supply chain platform. Learn more about container logistics solutions

Blockchain Platform The award-winning IBM blockchain platform offers the most comprehensive set of blockchain software, services, tools and sample code available for Hyperledger Fabric. It provides everything you need to create, test, control, and manage a working blockchain network in a variety of cloud environments. Learn more about IBM Blockchain Platform Blockchain Consulting We have over 500 client engagements and more than 1,600 technical and industry experts. Find out why IBM Blockchain Services is the leading provider of services for your blockchain journey. Learn more about Blockchain Consulting Blockchain for Food Supply IBM Food Trust is the only network of its kind that connects participants across the food supply through an approved, permanent, and shared record of food system data. You can increase food safety, create new efficiencies and contribute to your bottom line.

Dear Friends, I hope you find this sharing helpful to you. To know more in-depth, practical and powerful knowledge on Blockchain For Business, I recommend you to buy my book by clicking on the Buy On Amazon Button Below. You can preview this book by clicking on Free Preview button. Thanks for your support.

May you find success in your endeavors and business.

Yours Sincerely

Anthony Aroes