The functions of fintech that make it different from other businesses

 intech is a combination of "finance" and "technology." Any software, computer program, or other technological device that enables people or businesses to execute financial transactions online or get access to their accounts is referred to as such. 

In the past 10 years, as more individuals have used digital technologies, fintech has arisen as a tool for people to deal with financial challenges and move towards financial goals, according to Siddharth Mehta, Bay Capital CIO. As a result, consumers have come to rely on fintech in addition to its obvious everyday benefits for several activities such as banking, budgeting, investing, and lending. 

Fintech apps exist in many different forms and work in different ways. Financial account data (such transactions and account balances) may be safely unlocked using an app or service that performs an action to supplement or enhance such data. 

For instance, according to Siddharth Mehta IL&FS, wealth and financial management software combines financial account information from many accounts into a single, easily readable snapshot, providing customers with quick access to all their financial information. The same programs might suggest steps users could take to improve their financial status based on the information provided. 

Siddharth Mehta, Bay Capital CIO, claims that fintech applications are financed from existing bank accounts and then used to conduct activities like stock or cryptocurrency trading. Platforms like Robinhood and Coinbase, which are typical examples, let users to rapidly and inexpensively move money from their bank accounts into a separate account where they may make a variety of investments. 

To work, fintech apps need the following types of "plumbing": 

API: Financial APIs (application program interfaces) connect customers' bank accounts to fintech services and apps in a safe and secure way, allowing users to move money, exchange financial data, and validate their identities. 

Mobile apps: Most fintech companies provide a mobile app so that consumers may access their funds and data whenever they want. Siddharth Mehta, a former director of IL&FS, asserts that mobile applications, whether they be investment platforms, financial management tools, or digital banking apps, are nearly always connected to fintech. 

Web-based solutions: Some (but not all) fintech companies also provide a web-based option that lets users log in and use the same functions as the mobile app using a web browser. 

Most people's everyday lives have been transformed by APIs' capacity to safely open financial data and practical mobile applications. For instance, it's more likely that friends and family will send money to one another via PayPal or the Cash App than it is that they will physically or postally exchange cash or checks.

 Read more here :  https://www.moneylife.in/article/covid-19-disruptions-speed-transformation-of-trade-finance-industry-in-india-report/62164.html 

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