Financial Technology, commonly known as fintech, is a rapidly growing field. It has simplified financial transactions and made them more accessible and cost-effective. Fintech has streamlined operations, increased security and improved customer experiences by incorporating technologies such as artificial intelligence, blockchain, etc. The growth of fintech has been driven by various trends such as the rise of digital banking, which allows customers to manage their finances, request loans and purchase insurance through digital platforms. Another trend is the utilisation of blockchain technology, which allows decentralised transactions without intermediaries, offering transparency, security and efficiency. The growing use of smartphones provides a favourable environment for fintech solutions as people can access services conveniently through their mobile devices.
According to a new report by Bangladesh Bank, more than 26 million people in Bangladesh use fintech to do transaction for different purposes and over seven million people use this technology daily to do transaction. There are many fintech services currently available in our country. Starting from sending money from P2P (person to person) to cash out, everything happens within a few seconds. Nowadays, people can take microcredit loans from different MFS (mobile financial services). Fintech has made people's life easy and fast. Recently the central bank has stated that the growth of fintech transaction in the country has increased by 200 per cent from the last year and also the value has increased by 150 per cent. The government has taken different initiatives for the growth of fintech in Bangladesh. The authorities concerned have passed a new digital security law to protect users' data and ensure a safer transaction system. People are actually loving this system and preferring to use rather than carrying the cash.
Most people believe that carrying cash with them is risky. Sometimes they do not have the change that they need to pay to someone. So, they prefer the use of fintech to cash. The advantages of mobile phone applications and online platforms have contributed to the rapid adoption of fintech solutions in the country. Skilled human capital will be required to improve innovation and success in the field. Promoting financial literacy and expanding digital infrastructure to ensure reliable connectivity, especially in rural areas, are important steps towards realising the full potential of fintech in the country.
Abdullah-al-Noman,
Student of School of Business and Economics,
North South University, Dhaka,
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