Aspiring entrepreneurs from third-world countries and underprivileged communities often find it impossible to fund their dreams by applying for loans. This is because of their lack of credit history or sometimes even little to no access to formal financiers. However, fortunately, microlending apps such as Kiva are here to change the state of small businesses in dire need of funding. But how does the US-based online microfinance company Kiva really work?
The most wholesome and altruistic innovation to come out of the FinTech, or financial technology domain is that of microlending apps and platforms. Micro lending platforms leverage peer-to-peer (P2P) technologies to offer loans to small businesses as well as personal microloans to individuals without a standardized credit history.
The COVID-19 pandemic caused a surge in demand for contactless payments. The shift from cash to digital payment options eventually lead to increased downloads for peer-to-peer (P2P) payment apps like Venmo, PayTm, Google Pay, AliPay, etc.
The COVID-19 pandemic made us witness drastic changes in the way consumers prefer to pay for products and services, inclining more towards cashless transactions. Digitization is certainly a huge step in making payments a quick and seamless experience for customers. That is why digital payment players out there are leaving no stone unturned in bringing innovative modes of payments for businesses and consumers.
The smart customer of today needs convenient and safer ways to access, spend, save, and invest money. That is why banks are trying to go the extra mile for an improved customer experience. ATM machines, card payments, mobile banking, etc. exemplify how the banking sector is continuously evolving and believing in technological advancements like never before.
An overwhelming number of leading banking organizations have been adopting conversational AI to improve customer service and end-user experience. This has been especially evident in the retail banking sector where there is no shortage of competitors. Valuable customer analytics and 24/7 support are some of the benefits that conversational AI offers.
Traditional financial institutions still rely on manual tracking when it comes to the vendor management component of their workflow. They make use of spreadsheets, email, and shared files on online drives instead of a dedicated vendor management platform. A common misconception in the financial industry is that investing in a Vendor Management System (VMS) is more expensive than manual processes.
For the FinTech sector, the pandemic-riddled 2020 and 2021 had been majorly about handling the many hurdles of digital transformation. 2022 is looking like the year when businesses will stabilize and get back to business as usual after swapping their systems to digital platforms.
The banks of today are witnessing sweeping changes at an unprecedented pace. Changing consumer expectations, new technology innovations, and unconventional business models are driving these changes in the banking sector. Banking officers operating in the technological sphere are realizing the potential of cloud banking to help them cope with these modernizations.
The FinTech domain has recently become an integral component of banks and Financial Institutions (FI). FI-FinTech collaborations are especially crucial in handling the vast and ever-increasing burden of regulations in the financial sector. Regulatory changes are being rolled out at a staggering rate in the finance sector. This has driven FI stakeholders to turn to niche technology solutions collectively known as Regulatory Technology (RegTech).