Fintech is a short form for finance and technology combined. This means technology is utilized to manage finance and financial matters. When you take a closer look at the definition of finance, it refers to the management of money or capital. Hence, fintech can be defined as
“A financial innovation associated with technological impacts that could result in the development of new business application, models, products, and processes which might have an immediate effect on the markets, and institutions that are subjected to financial services.”
Now let us look a little deeper into the definition of crypto
Crypto is a short form for the word, “cryptography’, that is widely associated with the security of Cryptocurrencies like the blockchain and other smart contracts. It is certain that most of these concepts of currencies are associated with finances which are directly related to how companies function and raise funds and the secure movement of liquidity.
Standard Chartered which is popularly known as the “traditional finance company” (started in 1853) announced the launch of crypto custody service. This included the emerging plans on PayPal that is the best friend for the fintech sector to shift to crypto services. Another example for the deviation is in Japan that is developing their crypto token to laugh payment using apps. Time for change?
By far, the technologies that are having a drastic impact in the fintech market are the Artificial Intelligence, and the basic widespread availability of the internet. The innovation from these industries is from the innovation of radically new types of data. However, when we consider crypto, it is also an innovation regarding data, but at a much faster pace.
However, crypto is an innovation of authority as well. Hence, the potential of crypto development is far beyond the traditional means of technology. Although Fintech has always set a new wave in achieving a new dimension in finance using technology, crypto should be lucky to get involved in such a dimension. However, the technology is not going to settle for less.
The most significant popularity and the increase in the large incumbent into the crypto markets is a Standard Chartered that is currently present in 70 countries, and also present on the market cap on the London stock Exchange. Apparently the company was all set of the set up a crypto marketplace, however after realizing the issues and significant barriers as a lack of balance sheet custody services.
Despite the reason, almost 20 counties have dedicated, and shown interest towards the new venture. Another crypto based company called Avanti aims to compete the triennial fintech and financial market with crypto currencies by pushing forward the block chain technology. It also started a token called Avit to challenge the traditional working of the banks. Although NTFS sound likes a quirky niche, they’re more interested in identity applications which basically enjoys some perks of blockchain and their technology, but in a limited number and period. The scarcity is also a value propositioned.