The worldwide financial industry has prospered with increasing technology and increasing innovation. Banks are buffering the full impact of the latest technological transformations. Cloud-based solutions provide the banking sector with efficient, secure access to entire data sets. This reduces costs while offering the customers better service.
Fintech is a major part of the financial sector. However, this was not always the case. Until a few years ago, it served as a back-office support function for bankers and merchants. But, the last decade has been a boon for the Fintech industry where private enterprise capital went through the roof.
There are a lot of career opportunities in Fintech, which is a thriving industry with lucrative earnings potential. After completing the Fintech Certification Program, candidates can easily find employment in the public and private sectors. The most common jobs involve information security, regulatory management, financial risk management, data analysis, and many more lucrative domains. India has rapidly taken its place as the third-largest Fintech network in the world. India is also the fastest-growing Fintech market.
What are Banks?
A bank is a licensed financial institution where people keep money, collect money when needed and take loans. Banks also provide currency exchange, asset management, and safe deposit.
In the modern era of banking, digital banking is the fulfillment of all traditional banking activities with many advanced options via the internet.
What is Fintech?
Fintech or financial technology is generally described as an industry that uses technology to make financial systems and the delivery of financial services more efficient.
In practical terms, digital payments, digital loans, BankTech, InsurTech, cryptocurrencies, etc. are some of the major components of Fintech. Now, Fintech is involved with various sectors and industries such as fundraising, education, retail banking, investment management, etc.
Paytm, Razorpay, Clear Tax, PolicyBazaar, MobiKwik, Pine Labs, and Amigobulls are some of the Fintech companies in India.
Difference Between Banks and Fintech
|Definition||Financial institutions are mainly entitled to take customer deposits and issue loans||It is Financial technology that provides huge consumer financial services driven by the use of technology.|
|Objective||Emphasize security and financial risk management.||Provide smooth and consistent customer service through ease, performance, personalization, and accessibility.|
|Framework||Banking organizations’ traditional systems and rigid frameworks constrain their ability to adopt new technologies in time.||Bringing innovation, customer-centricity, and a more user-friendly process, and is a powerful way to make financial services more accessible.|
|Collateral||The collateral requirements of banks are rigid||The collateral requirements are low and adaptive.|
|Scope||It has limited market exposure.||It has a greater market distribution because of the application of advanced technology trends and utilities such as smartphones|
|Technology dependency||It is Technology-dependent but does not depend heavily on it.||Fintech companies are extremely reliant on technologies such as machine learning, artificial intelligence, and automation.|
|Target Customer||Provides financial services to customers who have documented track records and have a good credit score.||Aims to reach the unbankable, such as people with poor credit scores.|
|Cost-efficiency||Banks require physical space and thousands of workers, which increases the cost||Fintech companies can offer less expensive products and services due to a more optimized structure.|
|Risk factor||Traditional banks are considered the safest option because they follow strict regulations.||Fintech regulations are considered riskier due to their flexibility.|
In 2020, the pandemic may have played a major role in the digital transformation that occurred, but this trend will endure.
As the customer demands are rapidly growing all over the world there are more job opportunities in the Fintech industry. If you want to join the Fintech industry then you must have to join the best Fintech courses in India offered by Imarticus and obtain hands-on experience in the industry with the Fintech training courses guided by the experts.