Understanding FinTech, a Rapidly Booming Sector

Finance. The world runs on the word finance. We have come a long way when it comes to the evolution of finance. Right from barter to cryptocurrency, we have seen a digital revolution in the field of finance. 

A comparatively new concept of FinTech is a buzzword, rather a phenomenon that is here to stay.

FinTech are basically two words, Finance and Technology. The meaning of which is technology in finance. It can be as simple as the online payment gateways to the more complex cryptocurrency and blockchain. 

FinTech seems to be a personal favourite of the investors too, judging the increase in investment in fintech companies by almost 60% which comes to 71.9 billion USD since 2019.

FinTech can be simplified as traditional financial activities with a twist of innovation and technology.

The traditional financial functions such as making payments, loans, insurance, trading and other banking operations, which have been offered under one umbrella, have been broken down into single functions and there are apps, websites and software for each and every one of the functions. The rise of neobanks or banks without any physical branch is an excellent example of technology in finance when one can check his/her savings, go for microloans, make payments, invest without even stepping out of their house. 

Artificial intelligence and machine learning are almost sacred for people engaged in trading as the ability to understand where the market is heading is the answer to their prayers. 

According to a KPMG report, in spite of the pandemic, FinTechs managed to bring in $2.7 billion in the form of equity funding. 

If one is smart to understand the way in which the wind is blowing, FinTech is a horse that will eventually win the jackpot. But, in order to understand FinTech, a basic understanding of the key concepts of Finance is of utmost importance.

MITSDE is one such institute that strives to be in tune with the changing times. MITSDE’s Post Graduate Diploma (PGDM) and Post Graduate Diploma in Business Administration (PGDBA) in Finance Management touches upon the key concepts of finance and the use of technology in finance. It covers the aspects of finance that mark the foundation of finance to provide a better understanding of what FinTech is all about.