FinTech (Financial Technology) is the new modern technology designed to compete with the traditional financial methods of delivering services.
With the increase of importance of technology due to the COVID pandemic, Fintech has evolved and became significantly more important to banks and people alike.
With this transition occurring it is important for everyone to understand what these changes mean and how it will continue to evolve in the future.
With the generations of people who grew up with technology getting older, businesses have had to adapt to please these generations.
People have become more and more comfortable managing their money and businesses online. They are eager to use new technology because it offers these businesses and people flexibility that they did not have before.
Some of the results of this increase in Fintech is the addition of digital mortgages and digital lenders. This technology was very important for banks because when COVID happened it was the only way to do business.
Now people prefer the business to be online because it is easier and more convenient than doing business in person and on paper.
What this means
Quicker and easier
Fintech allows companies to put out a product that is quicker and easier to use than ever before. For mortgage technology this is very important. For the Irish there is a housing crisis and this technology allows for people to gain access to mortgages easier than before.
This gives Irish citizens access to a quick and easier process when it is needed most. Buying property is increasingly difficult due to the lack of available properties and the prices of these properties. With a simplified way to apply for mortgages and keep all financial records safe in one secure location, the consumers can spend their time on the other difficult parts of the housing process.
OnlineApplication is a company that has benefited from the rapid development of Fintech. By providing a way for digital lenders to have a system that lets their consumers easily apply for mortgages online. This provides a way for consumers to save time and find better rates.
How it affects consumers
The development of Fintech is great for consumers. With everything switching from in person, paper business models to a no contact, online business models things are being designed for customers.
Gone are the days of trying to keep all of your financial records stored safely in file cabinets and waiting for paper contracts to be approved. Fintech allows for all of your documents to be stored safely online and sent to anyone with the click of a button.
An article from The Central Bank says that Fintech is beneficial to consumers because companies can store their personal data which allows them to offer special customizable products and services.
How it affects businesses
Businesses are benefiting the most from the emergence of Fintech. These new financial systems allow them to offer better, quicker and more services than ever before.
OnlineApplication is a software company that provides a place for consumers to apply, get pre-approved for mortgages and then get packaged to different lenders, making an easier process for everyone involved in the lending process.
How it affects the future
An article from the University of BATH says that the Fintech market was valued at about $127 Billion in 2018 and is expected to be valued at $310 Billion in 2022. This is a 24% increase, which shows that this is continuing to become more and more valuable and something that is not going away anytime soon.
This is a great development for consumers as the development of this technology will make their lives easier. For businesses it is good because they can offer better services to their consumers but this also means they have to keep their tech updated otherwise other companies will pass them.
To learn more about the importance of Fintech and how the digital mortgage process is evolving, contact us.
Jimmy LaSusa is an intern from the University of Missouri, who is majoring in Marketing. His interests include International Business, Marketing and Sales.