Fintech is the amalgamation of two words- financial and technology. Fintech companies aim to incorporate innovation and technology into financial services. In recent years, they have gained wide popularity with the use of the internet, upsurge of automation tools and comprehensive software. There are several applications of fintech on the financial sector; this includes automation of investments, trading algorithms for recommendations, risk management frameworks and superior models for analysis. Primarily, they use automation, machine learning, big data, block chain and robotic processes to simply existing banking processes. A simple example of a fintech can be the ability of consumers to check their bank account status by themselves rather than a teller/clerk pulling it for them. Fintechs enable consumers to take charge of their financial decisions, encourages financial literacy, independence, saves money by being cost-effective, convenient and improves security.
Fintech and the US
Fintechs are exceedingly popular in countries that are developed and have a rounded banking system. The availability of venture capital, the high number of internet users, access to phones, efficiency and large-scale digitalisation means an opportunity for fintech to crop up. Owing to these factors fintech are highly popular in the US. However major issues that most of this face is the quality of software, the need to constantly innovate and navigate the industry regulations. Reliable companies like Bambu which is a fintech company usa, provide useful services for companies and banks that can be used by the consumers. They use hybrid models instead of one-size fits all solutions, analyse big data using Hadoop and even robo advisory to build suitable models that can be used by investment analysis, banks and even agents. Their widespread geographic location, constant innovation and their ability to simply technology for end users have made them pioneers in their field.