Financial Technology Innovation (Fintech), Primadonna Financial System In The Digital Age
Financial Technology Innovation Today, people are used to technological advances, even many of them are very dependent on the internet. Now, the internet has entered and affected all lines of people’s lives, including financial (financial). The Ministry of
Communication and Information said that internet users currently reached 63 million people. Of course, this encourages creativity and innovation in the field of information and communication technology so that Fintech companies emerge (financial technology) to meet the changing fast and easy lifestyle of the community. Fintech aims to make it easier for people to access financial products, facilitate transactions and also improve financial literacy. And can minimize problems in buying and selling transactions and payments such as reluctance to go to shopping or transfer funds through a bank/atm machine.
Financial Technology Innovation
Then, What is Financial Technology? According to Bank “Financial Technology / FinTech is a combined result of financial services and technology which eventually changes the conventional business model to moderate, which initially pays face-to-face and brings a certain amount of cash, can now make long-distance transactions by making payments that can be done in just seconds “.
Financial technology is not just an online money loan service. Indeed, the online money loan service is part of fintech which is now on the rise. But the financial technology / fintech category is not only that, there are four categories of fintech, namely:
1. Peer-to-peer lending and crowdfunding
Peer to peer lending is similar to a marketplace that brings together lenders and borrowers. Peer to peer lending is a service of lending funds to the community. While crowdfunding is raising funds to finance an activity or contribute to disaster victims.
2. Market Aggregator
In this type of user can select to compare various financial services. Such as credit card products, unsecured loans, insurance, and motor vehicle loans.
3. Risk Management and Investment
Fintech is a digital financial plan. Users can make an investment model that suits their needs.
4. Payment, Clearing, and Settlement
Definitely no stranger to e-wallet or payment gateway wallets. For example, The benefits that you get are practical, fast and easy, can be used in various transactions, diverse choices and certainly safer from robbery.
The presence of financial technology brings many benefits to the community. Not only that, the state and financial service companies also feel it. For the community, consumers can enjoy better and faster services, more choices, lower costs and the creation of quality products. In addition, also feel helped by the ease of transacting with consumers. Thus, the level of welfare of the population will increase.
Fintech can also improve the economy and national finance with various facilities to fulfill financial needs, export, inter-island buying, and selling, etc. for the welfare of the community. Fintech also encourages the transmission of economic policies, increases the velocity of money circulation, encourages the National Strategy for Inclusive Finance and accelerates the circulation of money. Of course this is able to increase and influence the economy to become better from year to year.
For companies and financial institutions, they will get various facilities such as simplifying the chain of financial transactions, reducing operational costs and high capital costs at the beginning so that the profits to be gained are greater. And easy access to financial information without the hassle. This financial information will make entrepreneurs more mature in planning a business.