Yekpay Blog

Financial technology (FinTech)

Financial technology (FinTech)

FinTech

Financial technology or FinTech means the innovative use of technology in providing financial services. Companies active in this field are essentially startups that are trying to challenge companies and traditional ways. Now FinTech has become an entrepreneurial focus for business start-ups and a new interest for investors.

The goals of FineTech is to reduce costs and increase financial services, eliminate time and space constraints, and be able to assess potential risks.

FinTech in Iran

As we know, payment terms in Iran are subject to restrictions. This has provided us with creativity and advancement in this field, and welcoming startups in this area are proof of this.

In fact, FinTech is complementary to banking services and financial institutions, not their rivals.

In parts where FinTechs play the role of interface ports, Internet stores are located in the subset of these ports. The e-commerce development center in Iran will authenticate these online stores to prevent potential harm in all areas, including security and social and cultural issues.

Advantages and Disadvantages

The advantages of FinTech is comfortable, flexibility and transparency, and the disadvantages are information security, the creation of a new monopoly and the creation of money.

In fact, the first single goal of FineTech is to provide banking and payment services faster and more convenient, including payment applications platforms that are public and user-friendly. Many of the startups in this area are based on the optimization of financial behavior and, in fact, help finance management both individual and corporate.

Despite all the advantages of FinTech, this technology has some disadvantages. For example, the security debate that these types of technologies are always the subject of hackers and Internet thieves that are inevitable.

Or, for example, a discussion of money creation that there should always be a monopoly overview because saving money on your account or electronic wallet is considered a quasi-bank activity, and if it does not have enough supervision, it will reduce the Central bank's influence.

Another disadvantage is the possibility of creating a monopoly by a complex. For example, if a complex can handle many of the market's needs alone, it can increase costs and reduce services after some time. This requires a precise and continuous control over the performance of these types of collections.

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