These are the Fintech Business Advantages You Need to Know – Trends72 Uncensored ExploredAugust 3, 2022
Today we’re talking about These are the Fintech Business Advantages You Need to Know – Trends72
#Fintech #Business #Advantages #Trends72
Trends72.com Here are the Fintech Business Advantages You Need to Know – Advances in digital technology have changed the way people act and think. We all know how easy life is today compared to ten or twenty years ago.
The presence of Fintech in Indonesia is well received by various groups. In fact, this technology thrives on Indonesian soil. Today, merchants flock to promote cashless payments, i.e. paperless payments.
For this reason, people inevitably have to have a digital wallet such as OVO, GoPay, ShopeePay or DANA in order to be able to pay for services and goods. Digital Portfolio, on-line investment, on-line lending, all of them are the work of Fintech. Why is financial technology so popular?
Getting To Different Circles
It is undeniable that Fintech is able to reach various groups, ranging from young to old, low class, middle and upper class, large companies and micro businesses such as MSMEs. In fact, financial technology can also penetrate city boundaries, so that even remote areas have been touched.
This System is Flexible And Easy
Nowadays, everyone prefers to do practical things. Therefore, Fintech also responds to the ease of financial transactions that replace conventional systems. Fintech can be done anywhere and anytime without having to go to a bank or other financial institution.
Supervised by OJK
The growth of fintech in Indonesia must be widely used. Not a few people who are not responsible also use it to commit fraud. As a user, you don’t have to worry that OJK will continue to monitor problematic illegal financial technology.
Reduction of high interest loans
Not everyone can open a business with sufficient capital. To open a business and run its operations, they are willing to borrow. Usually, conventional loans and the like will charge high interest rates to strangle people who have less ability to pay.
With the adoption of Fintech in P2P lending applications, for example, you will get all information about loans without being hidden. In fact, the interest offered is even lower.
Policy Support During the Pandemic
In this pandemic period, the presence of Fintech plays an important role in stopping the spread of the virus. This is one of the factors in the rapid growth of Fintech in Indonesia. Since the pandemic is forcing everyone to limit activities and interactions, it is not surprising that people are turning to Fintech as the main solution.
Fintech Support Technology
After discussing the definition of Fintech and its development in Indonesia, you must be curious to know which innovation supports Fintech and is currently the most talked about. Here are some examples:
Artificial intelligence (AI)
In recent times, AI or artificial intelligence has become a fundamental part of the financial world. Many banks are already leveraging AI to verify cash, credit, investment accounts and more.
One of the real manifestations of the use of AI can be found in the trend of Fintech P2P Lending applications or known as loans. For lenders, AI is not only useful for predicting the behavior of potential borrowers, but also saves operating costs.
Lenders, also known as loan clerks, don’t have to go through the hassle of renting an office, buying a fancy computer or running around asking for permits. Only with a laptop computer or smartphone and Human Resources who do not stutter about technology, loan companies can operate.
Large information in finance refers to petabytes of structured and unstructured information used by the financial industry to predict consumer behavior. Therefore, how it works and how it works is not much different from AI.
Structured information is information that is stored to provide important information for decision making. On the other hand, unstructured data is information from various sources that will continue to increase.
Of course, banks with this large data will be rivals to conventional banks. Large Information enables banks to provide better and personalized assessments of consumer needs.
Once you hear the term blockchain, you will immediately associate it with cryptocurrencies. In fact, blockchain systems function not only to facilitate crypto transactions, but also financial technology services, such as on-line lending and crowdfunding.
Blockchain in Fintech has many positive impacts, such as safe and efficient transactions without the complicated requirements that conventional banks usually do, the ability to record transaction details (ledgers) and ensure the confidentiality of borrower and lender data. One of the fintech companies that use blockchain is Alumnia.
Advertisement. Scroll to continue reading.