What is Fintech?
Fintech/Financial Technology, refers to the combination of new technology systems and the traditional financial sectors operating methods. It incorporates the delivery and design of financial services that are accessed via online technologies.
Fintech has grown rapidly, not just in the UK, but globally and has opened up a wide variety of quick and agile services to both businesses and consumers. UK based financial technology firms, such as RLA Capital, expect over 80% growth during the three years and the UK's fintech sector is currently contributing as much as £6.6bn to the country's economy.
Why has Fintech had such a large impact and rapid growth?
Fintech has allowed companies to provide quick and flexible services and facilities to customers. Due to the flexibility offered by Fintech systems, clients can take advantage of reduced costs, increased transparency and most importantly it has increased usability and accessibility of services.
It has improved ways in which you can access services, remain reactive to market conditions, communicate and transport money via a wide range of methods.
- Savings - Flexibility - Transparency -
FinTech has helped drive improvements in traditional financial services and promote disruption through innovative new products and services, which can offer benefits to consumers and other sectors of the economy.
As RLA Capital has incorporated bespoke FinTech systems, tailored to our needs, we have become increasingly adaptive and flexible when meeting market trends. This quick and reactive access to services and diverse funding options as allowed us to source increasingly cost-effective finance solutions and business loans, which in turn allows us to pass on our savings to our clients.
With prospective clients being able to access information, enquire and start the application process via websites and mobile apps, the lending timeline is dramatically reduced. Which in turn, allows companies to access funding at an accelerated rate.
As with the original dotcom boom and the rise of ecommerce in the early noughties, many early adopters have taken advantage of the increase in Fintech offerings across the market. However, as Fintech has matured within the UK, its use is becoming more commonplace within the marketplace.
One of the major restricting factors that deter companies from taking the initial step into using and/or adopting Fintech systems are the perceived security threats online. Securely developed systems will make use of;
- HTTPS only SSL connections, ensuring that any data sent to and from the client is over encrypted channels - What is SSL???
- Secure password protected systems
- Data Sanitisation
- Hashing and Encryption to Protect Sensitive Data - What is Encryption???
And many more…