Technology has always questioned the limits of the human race. With the advancement in technology, new and innovative ideas play a vital role in building the foundation of a more advanced tomorrow.
Financial technology, generally known as fintech is simply referred to all of the technology that is practically changing how we operate and do things with money. If you are looking to know more about the same, read this blog as we will be talking about the pros and cons of this tech.
Here are some of the pros and cons of financial technology, commonly known as Fintech.
1. It brings money
One of the most common pros of this technology is that it can bring in huge numbers when it comes to money. This technology simply decreases the cost of trading with capital or for opening up new stores and goods places. Most of the software development companies that use fintech for innovation help the so-called “non-bank” people in joining the social economy, then help them in affording a way to credit. All this while demanding appropriate contractual terms.
It is common knowledge that the evolution of commercial technology is practically in every perspective of life and business with the raw potential for wealth being endless. It is generally about two things that are;
- To offer better running living resources
- To make sure that all designs are ingenious ones
2. Helps in democratizing the economics
The introduction to commercial enterprise has always been pretty inappropriate. Irrespective of whether it is independent trading trades or modern class perfections, not everyone is lucky enough to become economically active or to simply find a path to the same economic possibilities.
Most of the time, it is the outcome of perception, while other times, it is just a plain dice game. These possibilities are restricted by the community and time of your birth along with the restrictions of the state of the regional economy.
3. The technology promotes clearness
It is no secret that the world of finance is filled with controversial projects, to say the least. It is quite rare to see advertisements such as the Panama Papers that are mildly put together to explain to us the things that are going on and are out of sight. Nonetheless, the climate of global finance is complex to the extent that one can find tons of places to hide their unfair behavior since there are simply not enough people to attach all of the particles. This is one of the main reasons why creative instruments are used as they can better help in identifying models of harm or unusual activity on a scale that is simply beyond the reach of people.
1. Some personalities get left behind
There will be losses whenever there is a technological change. The thing is, with software development for fintech, the character of such losses can be pretty diverse since mechanization is quite important here. Even though industrialization has always been a major cause of global worries in every part of the world. To put it bluntly, an increase in robotics and machine learning will simply kick out the need for a human requirement which is not the best possible result.
2. It May very well lead to a global imbalance
Financial technologies generally go hand in hand with the progress of digital communities. But for all of this to work, you will need an internet connection, data stations, mobile wireless access, along with other advanced bases. The main problem at hand is that majority of the people in the world do not have broadband. On the other hand, there are plenty of countries in the world where having a smartphone is considered to be rich. This simply leads to the fact that whosoever lives in these areas will simply be deprived of all the cost-effective features that fintech has to offer.
Another downside of this is the permanent drop in the cost of technologies. One can buy a smartphone these days for a mere thirty bucks and that device can offer the same fundamental services offered by a high-end device, although the performance and user experience maybe not be so smooth. Technological leaps have been seen in markets such as India where new technologies are getting recognized and established without the use of the old ones.
3. May ruin the privacy
As of now, fintech only works because it has been strongly digitized in our favor. For instance, people who have access to your financial information may very well get the information about your actions as well the pictures for it. Tech can predict things but most people prefer to remain secret since there are a certain number of legal things that you should be not kept in the records no matter what.
These are the pros and cons of fintech that can help you better decide whether or not fintech is a good thing for your projects or if it can ruin your entire plan.