Illustration by Su Ji Kang.

Falcon Finance: Unpacking the Rise of Fintech and E-Banking

Fintech has been on the rise — providing convenient and accessible financial services to companies and consumers alike. Learn how to navigate this emerging industry and its role in financial operations.

There is no doubt that the growth of fintech and e-banking has affected our lives, from its application in mobile banking to insurance management. This guide will walk you through how it's being used, its advantages and what the future of fintech might look like.
What is Fintech?
Financial technology — fintech for short — is a term that is used to describe a new type of technology that improves and automates the use of financial services. Broadly, the term can apply to any innovation that affects how people transact business. Through the utilization of specialized software and algorithms, fintech helps companies, business owners and consumers better manage their financial operations and processes. Additionally, most fintech startups also challenge traditional financial services by providing safer and more efficient services.
Fintech is a newly emerging industry. Originally, the term financial technology referred to the application of computer technology in bank offices or trading firms. The term was also used to describe credit cards and ATMs when they were first introduced. Since the explosion of the internet and the smartphone revolution, however, the term has been used to encompass a wide range of technologies from loans to credit scoring and investment management.
How is Fintech Being Used?
There are various types of fintech that can be observed around us, as the term describes a variety of technologies that intervene in both personal and commercial finance.
The first is known as mobile payments. In this method, fintech is used for money transfers and check deposits through smartphones. Some examples include Venmo, Interac and mobile applications created by banks. Nowadays, most banks offer a mobile banking feature to consumers.
Secondly, there is the use of crowdfunding platforms. Due to investments in fintech, these platforms are an opportunity for both entrepreneurs and the public to raise funds and reach international markets. Examples include GoFundMe, Patreon and Kickstarter.
Another example of fintech includes automated customer service technologies, also known as robo-advisors. These include the utilization of chatbots and artificial intelligence to assist customers with basic tasks with minimal manual effort.
Lastly, there is Insurtech. Here, fintech is applied to insurance, allowing companies to make the insurance process easier through online management. Many fintech startups are choosing to partner with traditional insurance companies in order to automate processes and increase coverage.
What are the Advantages of Fintech?
Banks have always utilized technological innovations to assist with their daily activities. Today, artificial intelligence and machine language techniques are used to assist with framework modernization that will allow organizations to work together with other fintech administrations.
These innovations in digital banking significantly help streamline the process by skipping the hassle of issuing demand drafts or checks. With the use of fintech, one can transfer money from one account to the other without visiting a bank. Digital banking minimizes human contact during the Covid-19 pandemic and allows for people to make transactions anytime and anywhere. Furthermore, one has the luxury of easily accessing and downloading e-bank statements at any point in time.
The digital banking sector will continue to grow in the upcoming years with a few changes in technology. According to EY’s 2017 Fintech Adoption Index, one-third of consumers utilize at least two or more fintech services, as it is increasingly becoming part of our daily lives. Companies and many traditional banks are active adopters of the technology — investing and partnering with fintech startups to stay relevant and adhere to the demands of digitally-minded consumers. Perhaps in another decade fintech will be as ubiquitous in our daily lives as the cell phone or the credit card.
Anjanaa Prabagar and Angie Jafari are Finance Columnists. Email them at
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