Potential Challenges of Financial Technology and How to Solve Them

Financial technology or Fintech and cryptocurrency are taking over the world. Everyone is trying to improve their financial systems and get them digital. Almost everything else in the world is digital, so why not financial systems as well? There are a few kinks that need to be sorted out and improved and we’re sure that they will be addressed in no time. If you are interested in taking on Fintech for your business, take note of the challenges and how you can solve them.

Security Concerns

The first challenge is security. Even though cryptocurrency platforms are secure and decentralized, hacking remains a problem. Digital financial systems will always carry the potential risk of hacking. This is obviously a problem as any business that holds financial information of clients, want to keep that information secure and private. Fintech companies, like Next Bank Asia, are putting systems and precautions in place to ensure the security of these types of information.

Liability Concerns

If any private information of any kind comes to light, Fintech companies can be held liable. This will poorly influence the company’s reputation and trustworthiness. This is also a concern for the companies making use of the technology. Most Fintech companies, like Next Bank Asia, take this concern very seriously and take extra safety precautions to ensure that there is no breach of confidentiality.

Denial of Service Attacks

This is a concern for most digital financial services and companies. People are taking chances and claiming that transactions never happened. This is becoming a huge problem across the world. Fintech companies can implement measures and protocols to address these potential issues and track the transactions to check whether such claims are true or not.

Any form of digital information runs the risk of becoming public or hacked. Every company and individual who use these systems must take their own precautions to ensure the safety of their information and their money.

4 Types of Cryptocurrencies in Use in 2017

Cryptocurrencies have become quite a big thing all across the world. A cryptocurrency is basically a digital form of money or unit of exchange. You can use these currencies to do online transactions without real money ever changing hands. It is fast, secure, and very convenient. Many businesses have also gotten on board and accept or trade in cryptocurrency. The four best-known cryptocurrencies are:

1. Bitcoin

Bitcoin is by far the most well-known type of cryptocurrency in the world. It has become a household name and people all over the world make use of this system. This was also the first cryptocurrency that came on the scene in 2009. It was developed by an anonymous individual or group only known as Satoshi Nakamoto.

2. Ripple

Ripple is a distributed ledger system that keeps track of transactions. It can successfully track different kinds of transactions and is very helpful to banks and other financial institutions. It can be used to track more than just the cryptocurrencies.

3. Litecoin

Litecoin is the smallest of the four cryptocurrencies on this list. It is the newest and also the fastest in terms of development and improvement. It moves quickly when it comes to improving speed and new features.

4. Ethereum

Ethereum is second to Bitcoin as the most used cryptocurrency. It was developed in 2015 and has a large market capitalization in the billions. It has had some issues with hacking and such things, but regardless of that, the currency is still popular among users.

Cryptocurrencies are being used for various transactions. People are using them to invest, play the markets, make an online purchase, etc. It is a fast and convenient way of exchanging money without a centralized system.

Benefits of Financial Technology and Cryptocurrency Transactions

There are many things being said about financial technology and cryptocurrencies – both good and bad. Many people have embraced it and others are still skeptical. People like to play it safe when it comes to their hard-earned money. So, if you are wondering whether these systems are for you, we have some benefits to share. It also helps to realize that banks have been making use of financial technology for years. Many of us use online and cell phone banking. These systems work on the same principle, just without a single entity running it.

Better financial situations in businesses – Fintech companies and the technology that they offer can revolutionize the way businesses run their finances. These Fintech companies come up with innovative solutions to help businesses have better cash flow and stabilize their funding systems. It can even help them manage their working capital better.

Better payment systems – Financial technology can improve a business’ payment systems as well as the efficiency and accuracy of invoicing and collections. It can help improve customer relations in all aspects. When the customer has a good experience with fast payments and quick resolution of problems, they tend to return.

Mobile devices increase convenience – Financial technology allows transactions to take place through mobile devices like tablets and smartphones. This increases the convenience and efficiency of transactions for the customer. With mobile connectivity, a business can streamline all its systems, integrate different accounts, and improve the overall customer experience.

Cheaper advice – These new financial technology systems enable robot-advice. This means that people can easily get advice and information on finances and investments without having to pay expensive fees to the highest qualified consultant.

It seems that Fintech is here to stay and will surely keep improving and bringing us new and improved systems to work with. Fintech could be the answer to your business’ cash flow or efficiency problems. So, approach your local Fintech company and see how they can help you move up in the world.