ItsPayd_Financial Technology

Technology is perpetually disrupting and changing the view of many industries from conventional communication into the age of financial services, typically in the banking and finance environment in the United States. In tradition, most banks and financial companies had hold the most important role in operating the end to end procedure of loaning, investing, and banking. However, the explosion of financial technology has altered the traditional methods that people used to make payment. The new financial technology products have transformed how personal and business transactions are processed. According to the report by Citigroup, citing in The New York Times, in the article “Fintech Start-Up Boom Said to Threaten Bank Jobs,” investment in financial technology has skyrocketed in the past decade, from $1.8 billion in 2010 to $19 billion in 2015. Also, financial technology caused up to 30 percent available employees may lose their jobs in the banking industry. It reflects that the number of customers walking to a branch for their bank service demands is less and less, Americans now rely on technology services which is easier and more convenient, now online and mobile banking has become a part of Americans’ daily life. Additionally, financial technology companies can help personal or company with a cheaper way to transfer money, invest and achieve a loan without any interaction with a traditional finance environment, such as Paypal, Moven, Credit Karma, LendingHome, and Wealthfront, etc. Another field of banking that is increasing dramatically is peer-to-peer payment(P2P), which let financial technology companies actively release more creative peer-to-peer payment to compete with the traditional finance and banking operation. Also, financial technology company provides cheaper investment loan; for example, financial technology companies only do business in billions of dollar while banks do in trillions. The bloom of financial technology puts traditional banking in competitive environment where their 4conventional rules are disrupting and challenging, as well as push traditional banks joining more technology.