LECTURE 6

 SCOPE OF FINTECH SERVICES

Banks and businesses are currently applying for large sums of money to invest in technology-based solutions. The rise of mobile technology and the Internet has revolutionized the way the financial sector operates. Fintech, which continues to be on the horizon, is setting new trends in delivering innovative products and services in the financial sector. Fintech has created a big market by utilizing creative technology to improve traditional financial services such as capital markets, insurance, money transfer and payments, security, compliance, asset management, and data analytics, among others.

SCOPE OF FINTECH SERVICES

Mobile app-based services:

·         Digital lending and credit

·         Mobile app banking

·         Digital wallet

·         Personal financial services

·         Online trading

·         Insurtech

Tech infrastructure services:

·         Banking as a service

·         Blockchain

·         Robo advisors

·         Payment gateways

·         Regtech

NEED OF AVAILING OF FINANCIAL SERVICES

Financial services are a part of the financial system people and businesses can obtain financial services from the financial service sectors. This sector of the economy includes a wide range of financial institutions, such as banks, investment businesses, lenders, financial companies, real estate agents, and insurance companies. Financial services are necessary for a country’s economy to function. Individuals with money to save may have difficulty locating others who need to borrow without them, and vice versa. People would be so focused on saving to cover risk if financial services were unavailable that they might not buy as many products and services.

NEED FOR BANKING SERVICES

The bank’s name is usually visible when you look at a cheque or debit card. Customers commonly use many financial services issued and regulated by individual banks. Banks can provide depositors access to their funds while simultaneously retaining many loans.

In the financial system and the economy, banks play a critical role. Banks, as a vital component of the financial system, efficiently allocate cash from savers to borrowers. Therefore, specialist financial services lowered the cost of acquiring information about saving and borrowing options. These financial services contribute to the overall efficiency of the economy.

1.      Encourage savings: banks encourage people’s habits of saving, which makes money available for productive uses.

2.      Connect savers and borrowers: banks act as a bridge between persons with excess funds and those who require funds for various commercial purposes.

3.      Facilitate business transactions: business transactions are facilitated by banks using checks instead of money for receipts and payments. Customers can move funds from one account to another via checks, drafts, and other methods provided by banks.

4.      Source to funds: banks provide short and long-term blondes in advances to business owners and individuals. Bank contributes to improving people’s living standards by offering loans to purchase consumer durable goods, residences, automobiles, and other items.

5.      Consultancy: modern banks fund their operations while providing consulting services to customers. They do this by hiring legal, financial, and market leaders and experts who can advise customers on the industry, income, trade, and investment issues.

 In today’s world, banks provide a wide range of services. This is done to attract a large number of customers. Banks, on the other hand, provide some essential services. As a result, all banks offer these vital services.