Quiz: How Many Of These FinTech Questions Can You Get Right?
It is no secret that the world revolves around making (and saving) money, and like many other aspects of life, the financial services industry is now looking to replace traditional financial methods with FinTech in the delivery of financial services.
FinTech refers to innovation in finance that aims at providing an enhanced financial service offering through the utilisation of enabling technologies, such as artificial intelligence, Web 3.0, cloud computing and the internet of things.
Thanks to FinTech, financial transactions including payments, became faster, more convenient, and safer for the consumer. On a daily basis, we see the result of these technology-enabled advances when we pay our bills online or book and pay for a taxi ride without needing to hand our credit card or cash to the driver.
How much do YOU know about FinTech and its benefits?
Take the quiz below to find out or quiz a FinTech-savvy friend to test their knowledge!
Regardless of your test score, these are a few things you ought to know about the benefits and risks of FinTech and digital finance.
While digital finance has yet to be broadly defined, it is generally attributed to the digitalisation of the financial industry and the use of financial services products or services through tech-enabled devices or the internet. Digital finance is more linked to well-established digital processes and products, while FinTech focuses on novel products and business processes that may disrupt and challenge the financial sector and that are not already widely adopted.
Since FinTech business models are complex they could potentially lead to heightened risks for consumers as well as misconduct by operators.
The lack of correct information about the platform can also impose risks particularly when new features are introduced, as not all consumers have the knowledge or the experience to properly assess novel products.
Consumers may also be exposed to additional risks when FinTech platforms are vulnerable to external threats, such as a poor internet connection.
There are, however, numerous benefits to FinTech which go beyond efficiency and speed.
Chief among these is the protection of consumers and investors by providing full transparency of what transactions were made on a particular platform. The use of FinTech also allows for other technologies like artificial intelligence for safer and more rigorous identity verification and fraud detection.
FinTech solutions can also facilitate better access to several financial products or services for consumers, much like how most banks now offer software that facilitates internet and mobile banking.
All of this, inevitably, opens the door for competition from a wider range of available products to consumers as more services and providers enter the FinTech spectrum.
Know someone who is still stuck on traditional financial services? Tag them!