As technology is taking over everything so, most probably in the near future tech will make finance and business to work efficiently and effectively. The finance industry is very important real economy so, why don’t we optimize it by using technology.
The traditional finance sector faces a lot of barriers to serve the real economy like security problems, information disparity and time and space restriction. However, in the last couple of years, financial technology emergence has brought a lot of opportunities.
Fintech includes the technologies that can be implemented in the financial sector to help them innovate by using big data, mobile internet blockchain, and cloud computing. It can help traditional financing to evolve and solve problems that they might face. Technology can be the driving force for bringing innovation which in return could encourage business development, stimulate consumption and then boost real economic development.
The services and products provided by financial sector would become more effective and of supreme quality. It could completely change the prospects and deeply change aspects of industry like credit, risk, and leverage and indirectly affecting the real economy.
Firstly, the enthralling technology will make services and products safer and increase their proficiency to support the real economy. Like if the use of online payments method is ensured then automatically the transaction system will become more effective and cost-efficient. Furthermore, if financial services system adopts blockchain technology then the companies can acquire a more accurate data.
Secondly, Fintech also improves consumption and economic structure. The upgrade of consumption and industrial structure is a prime element in supply-side reforms. Under current financial system customers as well as companies both face problems while getting loans from banks. According to recent analysis, consumer credits constitute less than 30% globally. So, the implementation of financial technology will change the scenario of the financial industry and return transform the real economy.
Financial technology real application is a business loan. And the best target is a small business. Lending to small businesses is riskier so Fintech provides solutions that simplify data analytics and risk management.
QUPITAL provides such solutions. It use risk management and analytics technologies to bring flexibility and diverse data in small business lending space. Furthermore, extend experience in Commercial Banking, Investment Banking, and Traditional lending sector enables QUPITAL to better understand credit unions and continuously changing the market. Small businesses also want a less clunkier process and local financial institutions for loans. So, QUPITAL is fulfilling the gap and providing solutions for small business.
Implementation of big data in the financial industry will make the development of reliable risk control system easily. If any company is expected to commit fraud, big data from online payments and transaction can probably predict the situation. This could decrease chances of default risks. So, for sure Financial technology will be the future that will provide the less risky environment and support the real economy.
In the end, financial technology provides a better means of lending to small businesses by integrating technology and traditional knowledge, which has supreme importance to develop stable financial activities.