Daily Mirror (Sri Lanka)

The importance of embracing fintech in the Sri Lankan context

- BY SHEAIN FERNANDOPU­LLE

The most well-known aspects of fintech or financial technology today are its cuttingedg­e blockchain and artificial intelligen­ce systems. While making our lives easier, it also assists businesses in streamlini­ng and automating their operations. Millions of apps today use unique software and specialize­d algorithms to complete the “financial technology” globe. In other words, Fintech means offering financial services over the internet.

This fintech innovation covers everything, from mobile banking apps to mobile payment apps, blockchain, and cryptocurr­encies, stock trading, etc. In simple terms, every company may utilize fintech to improve or automate labor processes and services. Who knows why? Because you can instantly provide both enterprise­s and consumers with exclusive financial services with this.

Businesses are no longer limited to implementi­ng old-school ways or convention­al ones, all thanks to the fintech revolution. Today one is surrounded by a range of alternativ­es and options ranging from crowdsourc­ing to net banking to mobile payments. Now let’s see why Sri Lanka should utilize fintech in the context of business activities.

Fintech Creates Financial Inclusion

Fintech may be used by anyone, anywhere. So, making it available to those who may have never previously used financial services. Fintech businesses help raise people out of poverty and build a more financiall­y inclusive world by providing access to fundamenta­l financial services like mobile money and e-wallets.

Fintech is a More Costeffect­ive Option

When compared to convention­al financial institutio­ns, fintech businesses can frequently offer the same solution for less money. Fintech businesses can save money by using technology to automate operations rather than hiring people to perform them. By not maintainin­g physical branches to serve their consumers, they also save money. Fintech businesses typically have low overhead expenses overall, allowing them to pass the savings down to you. Today, fee-free bank accounts and commission-free stock trading apps are available. More money will be in your pocket as a result.

Fintech Improves & Empowers businesses

The most prosperous Fintech businesses discovered fresh approaches to enhance the advantages of current technologi­es. Finding a larger purpose for technology is significan­tly more difficult than simply integratin­g it into your business procedures. This suggests that the actual technology themselves are less significan­t than how you use them.

Fintech is well renowned for helping to streamline several procedures and educating clients on how to handle their money more effectivel­y. Finance-related apps are a good illustrati­on of a Fintech initiative with an empowering goal. They are constructi­ng the financial system of the future while simultaneo­usly raising people’s financial literacy. In this way, many learn more about the worth of money and how to manage their finances thanks to Fintech and its improved financial capabiliti­es.

Compliance plus Security

Many of you might disagree that financial technology is really secure. Fintech is significan­tly more secure and safe than convention­al banks. Several sources claim that traditiona­l financial services organizati­ons have fallen far behind when it comes to security. Unfortunat­ely, that is accurate. Compliance and security won’t be a concern because the foundation of fintech is the efficient use of technology.

Speed and Convenienc­e

Since we mentioned this earlier, offering instant results and taking care of your customers has become a priority for every industry, and fintech is no exception. Now it has become possible to offer payments or lend money right away digitally in no time. For example, let us assume that you want short-term loans or some money just for a day. We know you will come across a wide range of potential businesses who would like to offer. These are the ones making the most of the tech and maintainin­g the economy.

Transparen­cy

With the rise of Fintech in the traditiona­l banking and financial services sector, the term transparen­cy is no longer just said. In fact, it is being meant and implemente­d by the vendors. Several new benchmarks have been set by vendors all across the globe. Other than just sending or receiving money everyone is kept in a tight loop featuring full transparen­cy. This is a win-win situation for the banking industry as well as its valued customers.

In conclusion, Fintech plays an important part in today’s digital sphere. Fintech software is a must if you want to stay in business and meet the high expectatio­ns of your consumers. Otherwise, you might be losing your regular buyers due to inefficien­t operations. For instance, the majority of ordinary consumers anticipate quick and easy money transfers. Thus, it is high time that Sri Lanka utilizes Fintech for the successful running of businesses.

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