Finance plus technology is equal to enormous economic growth. We are blessed to be living in a generation where there are several sophisticated mediums to raise money for business and doing business with an ease. Things such as tracking the financial behavior of a company or an individual, analyzing what is best for them, studying how the financial market will respond and many such others require a lot of brainwork. It is impossible for an individual or a group of individual to do everything. Therefore, we have developed certain technologies which have proved as a boon for our modern society. We are gladly moving towards safe and secure platforms where we can execute our transactions, share our financial needs and data without being anxious.
Here, we are sharing certain financial technology ideas that can provide you with all that you need.
1.Peer to Peers lending business ideas
Also famously known as P2P finance, it is a practice of lending among businesses or individuals by making use of digital platforms. The lendings are usually collateral-free or we can say that generally, the loans are unsecured personal loans. Since there is a huge risk of default in such type of lending, some may also demand some kind of security against the amount they lend. It could be anything like jewelry, car or any other valuable property. Some can also use P2P for charity or donation.
2. Crowdfunding business ideas
Crowdfunding is basically an old traditional method of raising money for the business. In crowdfunding, the person with an idea shares all the details about his/her dream project to invite investment. Nowadays, it is done through internet platforms. In such type of funding, it is not expected to receive a huge amount from one or a few investors. Rather it is expected to receive a small amount from several investors. The benefits of this method are that the business promotor receives the funding that he/she needs and the investors are also not hesitant in investing a small amount.
In the modern method of crowdfunding, there are three parties that complete this procedure. One is the fundraiser, the second is the investor and the third one is the digital platform through which executes it. The platform makes sure to properly take care of all the due diligence.
3. eKyc for financial industry business ideas
e-KYC stands for electronic Know Your Customer. KYC refers to the documents that tell about the important personal details of a person or an organization. It is the most crucial protocol in any financial service which helps in the authentification of the identity of an individual or a company. Most importantly, it plays a major role in controlling and monitoring fraudulent activities in the financial sector. The e-KYC is the procedure of taking or submitting the KYC documents via electronic mode. It not only saves time but also eliminates the problem of physical damage to the documents.
4. Payment gateway provider
The payment gateway is a service providing applications that let one do online payments. Also called as merchant service, the payment gateways have made it really for us to do financial transaction such as, buying stuff online, bill payments, tax payments etc.
5. Payment Wallet business ideas
Payment wallets is another best application that has made our lives much easier. Financial transactions have never been so easy. It makes use of a safe and secure medium so that we can use it without worrying about any kind of mishappening. Now, talking about how it works? Such applications first have to be connected with your bank account by making use of your net banking credentials or debit card details. Payment wallets are actually a kind of virtual wallet where you can park your money from your bank account and can then easily use it for bill payment, fund transfers, online buying, and many other such things.
With the help of this, you need not have to carry cash and not even your card everywhere. You can very well shop, buy a coffee or lunch, pay your utility bills just with your smartphone.
6. Financial Inclusion Business ideas (Finance for unbanked)
The financial inclusion refers to a system where everyone has an equal and unbiased access to financial services. It is very necessary for the overall development of a state that every unit must contribute to it. And for that, one needs to be included in the stream. The concept behind it is to remove the inequality in the distribution of wealth. For financial inclusion, the government promotes such programs where, by making use of surveys, the unbanked mass is recognized. Then the steps are taken to get them into the financial pace with which their surroundings are moving. Apart from that, providing them with easy and cheap loans for business.
It is a prime need of today for the sustainable growth in the globe. Anyone who is knowledgeable should participate and try to provide financial educations to those in need.
7. Blockchain and machine learning for digital banking
With the uprising of Bitcoins, one thing that caught everyone’s attention is the Blockchain technology. Its introduction was for the purpose of regularly maintaining the daily transactions in this cryptocurrency by the investors. But later it was analyzed that there can be several potential usages of this technology. It is a smart way of maintaining the ledger of an individual’s each and every transaction. It shares the same data across the internet with similar real-time updating, if any, just like core-banking. In simple words, it is like a post in social media. It stays as it is across the internet. The difference is that in social media posts, there is one source if the post is deleted from the source, it is deleted from the entire network. But in Blockchain technology, there is no single source and there is multiple access to the data and therefore, there is no such risk. We can compare it with the google sheet, where two people can access the same data and whatever changes one makes is visible to other.
How is it useful? This technology is not just about recording the financial transactions but also analyzing the financial behavior of an individual. This analysis can further help in the marketing of the right financial product to a person.
8. Financial products distribution marketplace
There are several products for a person which have the potential of yielding the financial gain for an individual. Such gains can either be in the form of a return on investment or meeting the financial demands. The financial product distribution is an entire industry in itself. Here, the knowledgeable ones provide advisory services to those in need. The various attractive products are flooding the market. Choosing the right financial product requires nothing less than an expert. Not everyone necessarily have that and therefore, we hire advisors to get the right recommendations.
9. Digital lending
Digital lending is the new future. Gone are the days when we had to rush to ATMs to meet our cash shortages. We have more sophisticated options like net-banking, payment wallet, POS. Now, we are gradually moving towards the digitization of loan procedure as well. In digital lending, the motive is to make the work as quickly as possible along with keeping it paperless. We no longer need to spare time to visit the right bank or non-banking finance companies along with our documents. Currently, almost every bank has opened the option of online loan application for their potential borrowers. Moreover, the introduction of e-KYC has also made digital lending possible.
Now, the loan applicant can get the approval within a few days of applying.
Financial underwriting refers to the assessment of the potential in the borrower or finding the creditworthiness of a project which is inviting investment. Obviously, we cannot accept whatever the claim one makes. We need a deep analysis of the borrower or the project before concluding anything. Such works do require a lot of knowledge and financial understanding. It takes an in-depth understanding of the market for one to draw out a required result.
The industries such as, the lending industry, insurance industry, mutual fund industry, and investment banking requires financial undertaking. Underwriting is practically about taking services to do the assessment work. Hence, financial undertaking means taking services of doing financial assessments. To a point, it also requires legal knowledge to execute the job of an underwriter.
11. Money Management tools
We often come across a situation when our expenses go out of control. Hence, things do not happen as we planned. Every month we keep failing to achieve the target amount we set for our savings. Thankfully, there are several smart applications today that help us in our money management. They show us all the expenses we made throughout the month in the form of a graphical representation. In this way, it becomes easy for us to analyze which part we are spending more. Are we spending carelessly or on useless things? We get the answer very easily.
There are many banks which are already providing this services to their customers. Apart from that, there are several other tools which one can use like You Need A Budget, Personal Budget, Prosper Daily, Pocket Guard etc.
12. Automatic advisory
There are several digital platforms that are making use of artificial intelligence to provide advisory services to the users. The user’s part is only to provide all of his or her details just like anyone does for seeking an advice. The pre-programmed system will do some calculations and analysis on the basis of the data fed on the website. After that, the user will get the right reccommendation or financial advice.