November 7, 2016
Changes in the economy Through Fintech and how It Has Effected U.S. businesses
The growth of financial technology has changed how we look at financing today. Individuals are rather passive when it comes to this developing technology as it’s only an advancement that creates convenience for them. On the other hand, businesses should be and often times are well aware of this influencing “fintech” (financial technology).
What is fintech? Fintech is the bridge between banks and the digital world. Almost everything is dependent on the internet. There are some businesses out there today that are strictly internet based. Banks were failing to make this online presence, so this allowed companies like PayPal, Lending Club, etc, to arise. They came and filled this gap that the banks had left behind, and smoothed out the financial struggle between our money and online businesses. Thanks to these companies we can make easy and simple purchases online, convert money into other forms of credit, and even distribute our money easier. But this is only what regular customers got from it.
Businesses saw other opportunities with fintech. Loans for those small businesses could now be easier to achieve, as online financial platforms allowed the handling of money in a completely different way than banks. There is more support and trust among those online loan agencies to help businesses grow. And these small businesses could now open themselves to the online crowd, allowing for more convenient business online. This helped them reach more customers and grow more than ever. Fintech is still growing today, at an even faster rate. Everything we used to depend on banks for can now be done online through other companies.