In the modern era, the wonders of technological disruption are no surprise to anyone. From human resources to marketing and finance—the technological revolution has redesigned the world that we live in. A combination of finance and technology has made the impossible come to reality—payments and transfer of real-time information within a fraction of a second; one question that comes to everyone’s mind is—HOW?
Addressing this, it is essential to look at this decade that brought about a change. The payments that once required fiat money changed to digital currency, and when speaking about the cashless and virtual trends, one thing that is a must is CONNECTIVITY.
This connectivity prerequisite has changed the face of the industry through its super-fast low latency and real-time delivery applications.
From making transactions from one part of the world to another to being updated about the financial markets in seconds, the history of the fintech industry has been well underway.
Scroll through to know how connectivity became the hotbed of fintech innovation and transformed the world with the 4th Industrial Revolution.
The 5G Disruption
The introduction of 5G has offered high-speed internet in rural areas and provided fintech firms with a larger target population. Having a penetration in remote areas, the industry is accelerating the push toward digitalization. It has led to building a touchless, safe, and easy-to-use customer experience. With the advent of technology, 5G being a game-changer has helped reduce latency and enhance the mobile banking experience.
Moreover, with fintech firms moving more towards digitalization, brick-and-mortar banking services will likely be limited sooner or later. Even though some individuals are still reluctant to make online payments, the introduction of 5G has eliminated the performance-related glitch and enabled more data to travel across networks in real-time.
Internet of Things
Fintech firms are leveraging on Internet of Things (IoT) to serve their old customers and gain new customers by building customer relations at personal levels. They are building systems that make wireless settlements and convenient and secure payments.
Apart from payments and wearable devices, the applications of IoT make it possible for fintech to enhance their performance and operational efficiency. Connectivity through IoT devices can help automate repetitive and mundane tasks, and integrating it with management information systems can create a seamless workflow design.
Blockchain-based Smart Contracts
As widely known, blockchain is a catalyst of disruption in the financial world. It gained a lot of fame for its decentralized nature, meaning no one has control, thus, altering it is impossible. Also, this technology has not only enhanced the connectivity factor but has also removed third parties from transactions offering heightened security.
Another high-profile use of blockchain technology in fintech is democratized money management, meaning no bank holds your money, but it is you who has the whole and sole authority over your money. Experts believe that having freedom and authority over your own money challenges the traditional idea of the banking system, where connectivity has played a significant role in the disruption of the fintech industry.
So we can say that the connectivity built through the above disruptive technologies is a key to the fintech industry. It has transformed the industry by providing applications that are not only resilient but also foolproof and always-on network, because well can we imagine our online banking system going dark for even a fraction of a second? Definitely, not!