Busting 5 Common Myths around FinTech

Although perfection will always be an idealistic concept, technology has brought us considerably close to achieving it in all spheres of life. Today, almost every industry leverages technology to enhance innovation, increase productivity, and reduce manual effort and time. And the exponentially high number of online transactions is testimony to technology’s utility in the finance domain. According to reports by Deloitte, the FinTech industry has witnessed 100% growth from 2017 to 2024. However, despite its rapid ascent, many individuals and industries are still apprehensive to use FinTech applications, primarily because of some prevalent myths:

1. Only startups and small businesses would benefit from FinTech

   A common myth is that FinTech is only for small-scale businesses or startups, because these can easily bring about a shift from the conventional ways of finance management. But contrary to this belief, FinTech can be – and has been – successfully implemented even in highly established organizations, even if these companies had been managing finance the traditional way for many decades before adopting FinTech. The only essential factor is to train employees well to adapt seamlessly to new technology and ways of finance management.

2. FinTech is a risky market

   Let’s face it – wherever technology and software are involved, one cannot totally eliminate risks. But the truth also is that many individuals and entities have leveraged FinTech securely in their routine processes and have been using it for a long time now. So, the key here is to research a FinTech application and its security features well. Premium FinTech companies prioritize user safety for all their services and leave no stone unturned to protect their clients’ identities and personal information. The only way to ensure safety when using FinTech is to be alert at all times and choose only a reliable application.

3. FinTech platforms can only be used by highly trained professionals

   Here, too, the FinTech company one chooses makes all the difference. Top FinTech apps have user-friendly interfaces, so that lenders as well as borrowers can easily navigate the platform, even with no technical expertise. Also, one should look for applications that offer training manuals and 24×7 online and offline support, which ensure that any challenges are resolved at once.

4. FinTech is only for industries with solid infrastructure and resources

   Contrary to popular belief, FinTech software systems are not just for established industries that have good infrastructural backing. FinTech platforms are already equipped with all the features required to reduce manual effort in finance management, so most of the time, all one needs is an electronic device and a secure internet connection. That’s why even small-scale industries and budding sectors can also benefit significantly from FinTech.

5. FinTech and banking cannot go hand in hand

   Another common assumption is that FinTech cannot operate in harmony with banking. But in fact, FinTech companies have successfully tied up with several banking institutions, offering their services to people with accounts in different banks. Also, banks that provide lending services can regulate borrower activity efficiently with FinTech applications and provide their clients with top-notch services, enhancing their experience.

With time, FinTech has made its indelible mark among companies at different scales of growth and in various industries. When a company considers FinTech platforms to leverage for its business, it should look for secure platforms with founders who have considerable expertise and experience in the field. They should also look for features like scalability, a user-friendly interface, dynamic discounting options, and the availability of a cloud-based platform that connects stakeholders from different geographical locations. We at Zuron provide all such cutting-edge features in our application, helping banks, NBFCs, suppliers, manufacturers, retailers, and private organizations achieve their financial objectives efficiently. Click here to find out more!