Club5050 || Promotion Of Financial Technology || By @mrazmat

The number of businesses using technology to provide financial services is increasing, however, every bank branch has a warning notice to use it wisely and do not let anyone sniff your password. Thus, with each passing day, the trend of branchless or digital banking is growing in Pakistan.After spending 18 years in the commercial banking sector, Qasif Shahid quit his job and set up his own company. With a 1 million venture capital investment, they have developed a digital wallet that can reduce the use of cash. The company's software app will be linked to customers' bank accounts so they can make payments to partner businesses via their smartphones.

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Equipped with the ability to read barcodes linked to bank account information on smartphones, this technology could be an alternative to debit and credit cards. Each user's wallet is linked to a unique partner bank account, and the company's app can be easily downloaded to any Android and iOS smartphone. I can put money.The company is already providing some of the largest commercial banking services to its target market, so the company has eliminated the fee for all transactions made through the app to increase the number of customers. Nearby users have been able to sign up. Fintech is an example of a company that uses technology to provide financial services.

The growing Popularity Of Fintech.

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According to a 2016 study PricewaterhouseCoopers, commonly known as PwC, there is growing interest from investors around the world in the field of fintech. Fintech's investment in startup companies was 5. 5.6 billion in 2014, which doubled to .2 12.2 billion in 2015. The study also claims that Fintech will have the biggest impact on the entire financial industry, including commercial banking services such as current and savings accounts, non-commercial loans and money transfers.Fintech is not the name of a new industry. The largest companies in the industry have been operating since the 1950s. The initial products of these companies included ATM and debit and credit card payments.

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Internally, these companies have been dubbed the traditional fintech because they provide products and services to commercial banks. A new batch of companies has emerged. These emerging fintech companies are using technology to finance themselves instead of providing services to existing financial institutions.According to a study, in a country of 32 million Internet users, of which 29 million use the Internet through 3G or 4G technology, and where one-third of the population is young, the emerging fintech companies' innovative financing There will be an increase.

Use Of Smartphones For Payments.

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Another innovative feature of digital payment platforms is that they allow different bank accounts to be used together. Hasnain Sheikh of another fintech company is about to launch a new application in which it will be possible to make payments through smartphones but its scale will be much wider than that. It will not require customers to transfer money deposited in existing commercial banks. The company is signing up with banks as well as major companies in transportation, retail, groceries, entertainment, electricity, gas and telephone as partners. Is. According to Hussain Sheikh, 12 major banks have so far signed up. He said, Our company has signed up big mobile companies. Since then, our team has developed software that facilitates branchless banking and has also entered into agreements with several banks. ”

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The company was valued at 18 1.8 million in 2015 and has managed to raise 54 5.4 million for various financial creation projects, such as the use of artificial intelligence.Sustainable collaboration between telecommunications and financial service providers is essential for making digital payments viable. Telecommunications companies have the infrastructure and technology to provide services to the disadvantaged, while financial providers have regulations. It is also worth mentioning that mobile phone operators are already offering their customers the facility to send and receive money through mobile numbers.In addition, another fintech company is developing a direct carrier billing platform through which consumers will be able to make payments to participating businesses from their mobile phone balances. Mobile phone operators are being signed up for this purpose. The startup company also plans to offer mobile phone balance payments to Google Play Store and Netflix.

The Future of Branchless Banking.

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Apparently, there is no future without financing companies and cabinets. If fintech companies succeed in promoting the use of digital wallets, then commercial banks, which are currently stuck in branches and cash due to their size, will follow suit. In this way, the Pakistani economy will move more rapidly towards the complete elimination of cash, but this will only be possible if fintech companies and commercial banks work together in the country.

Special Thanks To

@steem.skillshare

Best Regar By

@mrazmat