In recent times, the fintech industry has seen massive growth as a result of the utility it provides and the widespread use of the internet. In fact, it is safe to say that the emergence of fintech has placed the concept of traditional banking in the shadows.
Consequently, many traditional banking institutions have found themselves in a spot where they either adopt the evolving ideas of fintech or risk fading away gradually. Apart from banking institutions, today, many startup companies, business owners, and consumers can be seen using fintech in managing their financial operations.
The reason for this is not far-fetched. Fintech provides a means for business organizations and even consumers to cut down the cost of running their bank accounts.
You are probably wondering what exactly fintech is and how it can help manage the cost of operating your bank accounts. If so, then this write-up is for you.
What Is Fintech and How Does it Operate?
The term fintech came into existence due to blending the words “financial” and “technology .” Just as the name implies, fintech refers to the use of technology in carrying out financial activities.
Specifically, this has to do with modifying some software in creating specialized financial applications available on computers and smartphones.
Some examples of the software that fintech companies use to help business owners and even consumers carry out financial operations include:
#1. Artificial Intelligence(AI)
Among the different technologies available for carrying out financial operations, artificial intelligence is one of the most common. AI refers to a computer-based machine that is capable of performing tasks that naturally require the intelligence of humans. AI is instrumental in creating lending platforms, and carrying out other financial activities such as wealth management and fraud detection.
#2. Data Analytics
Data analytics is a technology that serves the purpose of gathering and analyzing data. This technology can be tailored toward helping business owners gather data about their employees or customers in order to make an informed decision. For instance, data analytics can come in handy when creating an incentive overview for the employees and customers in an organization.
#3. Robotic Process Automation (RPA)
This software technology replaces the need for humans to carry out repetitive tasks. With robotic process automation technology, it is easier to create a financial application that is capable of auditing financial statements or enabling real-time transfer and real-time funding.
The blockchain is a distributed ledger that provides a means of storing details regarding various transactions and other important data. Specifically, blockchain technology brought about the first cryptocurrency, which is bitcoin. Today, there are different cryptocurrencies available, and based on their utility, many businesses have introduced the crypto payment solution.
How Can Fintech Services Help Reduce the Cost of Running Your Bank Accounts?
One of the most important advantages of using fintech services is that it can help you cut down the cost of operating your bank accounts, especially as a business owner.
For a start, the fintech services provide a means of bypassing financial institutions that stand as middlemen when making financial transactions. Consequently, this allows you to transfer funds within and outside your country at a lower rate when compared to using the conventional channel.
One of the fintech services that has been efficient in this area is cryptocurrency. Using cryptocurrency in fund transfer and payment has proven cheaper, faster, and more transparent. This can really help in situations where you have to pay employees or buy goods outside the borders of your country.
Also, for individuals that operate lending platforms, fintech services can be a great way of managing the cost of running your bank accounts. With the right fintech service, your lending company can issue funds in real-time and manage debt repayment without spending so much on administration.
Furthermore, when it comes to insurance, fintech services can really make all the difference in ensuring instant payment of settlement funds directly to the consumers in a cost-effective manner. For instance, the Berkeley insurance payout is a great way for business owners to send settlement funds directly to a customer’s physical or virtual prepaid card or their debit or credit account in no time.
Employ the Services of a Fintech Company
Apart from cutting down costs, employing the service of a fintech company allows you to have so much control of the operation of your organization. This control can ensure transparency and immediacy when carrying out financial transactions.
At Berkeley, we create payments as a service platform that enables your business to transfer/receive funds and even issue cards for carrying out transactions. There are several reasons why our services stand out, some of them include:
- Better Technology
The technology that powers our payment platform is seamless and very easy to integrate into the operations of your business. Our technology makes it easy to make payments in real-time to employees or customers, manage cash flow, and handle administration.
- Quality User Experience
We provide that quality user experience that helps to put your brand ahead of the competition when it comes to making financial transactions.
Our platform constantly seeks innovations to help us improve and help business owners provide top-notch financial services.
Contact Berkeley today and let us assist you in administering a branded and customized financial service.