FILE - International FinTech Conference stage in 2017
CAIRO - 6 February 2018: Financial Technology is a common term in the 21st century, as a result of the rise of internet technology and the digitalization which affects various aspects of life.
Due the importance of FinTech in the 21st century, Egypt Today explains what Financial Technology is and how it can be used.
What is Financial Technology?
According to scientific papers, Financial Technology (FinTech) is a new financial industry that applies technology to improve financial activities.
FinTech is the new applications, processes, products, or business models in the financial service industry. These applications and products are composed of one or more complementary financial services and are provided as an end-to-end process via the Internet.
FinTech describes a business that aims at providing financial services by making use of software and modern technology.
FinTech aims to compete with traditional financial methods in the delivery of financial services.
FinTech products and services are faster, more efficient and cost-effective, and enabling a larger number of individuals to access and benefit from financial services.
Examples of Financial Technology are the use of smart phones for mobile banking, investing services and cryptocurrency.
Who uses FinTech?
1) Banks and their customers:
Banks provide online banking services which decrease the dependency on financial institutions.
2) Financial Technology companies:
They consist of both startups and established FinTech companies trying to replace or enhance the usage of financial services provided by existing financial companies.
What is FinTech used for?
• Instant money transfers:
People now are able to transfer money without going to financial institutions. With a password and few clicks, you can transfer your money to whoever you want.
You can do the shopping while you are at home. FinTech enables the customer to browse and buy products through the internet.
Cryptocurrency is a part of FinTech
A cryptocurrency is any kind of peer-to-peer digital money powered by the Blockchain technology. Since Bitcoin's appearance in 2009, hundreds of new cryptocurrencies have been created.
It is a digital or virtual currency that uses cryptography for security, and FinTech facilitates online transactions and e-commerce of this currency.
Conferences are taking place in different countries that try to digitalize their financial sectors in order to keep with the latest developments in the industry.
Egypt hosts the “Seamless North Africa FinTech” conference between February 6 and 7, 2018.
In April, “Seamless Middle East’ FinTech” conference will be held in Dubai between April 15 and 16, 2018.
In 2017 many conferences took place in Turkey, England, the United States and Switzerland.