Introduction
Greens fin Innovation Pvt Ltd is an innovation startup that offers complete solutions for islamic fintech and digital banking products. Fintech is an emerging industry globally, and islamic fintech is the best method of banking for all Muslims living anywhere in the world. It is necessary for all banks and financial services companies to adopt these standardised products in order to reach the Muslim community, which shuns conventional banking due to interest and riba, which are forbidden by Islamic law. The following features are also present:
It’s the easiest method to conduct banking.
Technology is altering our ways of living, working, and playing. It affects every aspect of our existence, including health care, education, transportation, and food production. Also in finance, technology is propelling new business practises. Fintech is an umbrella term for financial services firms that utilise technology to create new platforms, products, and services in response to evolving consumer demands. These innovative companies are reshaping the financial sector by providing simpler, faster, cheaper, and more transparent services than ever before, and by enabling consumers to manage their own finances at low cost and with great ease.
People are increasingly drawn to online banking due to the convenience and simplicity of transactions. It has become extremely simple to make online payments without a bank account today. You can rapidly check your account balance, transfer funds between accounts, pay bills and even send money directly to the account of someone else using a mobile device. Numerous websites offer immediate loans for personal use, even if you have no credit history. Therefore, gaining access to funds has become much simpler, whether you need income or wish to invest. The process becomes straightforward, fast, and trouble-free, which is why it is so appealing to everyone.
The global fintech industry is expanding rapidly. According to a report by Accenture and the World Economic Forum, the Fintech market will reach $1 trillion in the next five years and account for nearly 5% of global GDP growth. This may seem like a large amount, but it represents only a small portion of the $80 trillion in global assets. In addition, nearly two-thirds of respondents anticipated that their company would expand its Fintech product offerings within the next 12 months. This indicates that an increasing number of banks around the world are embracing the potential of Fintech.
2. It is expanding rapidly worldwide
Forbes reports that there are 478 FinTech companies worldwide. They range from tech firms to well-established companies like PayPal, Facebook, and Apple. Fintech is attracting so many investors and venture capitalists for a variety of reasons. One reason is that it allows businesses to reach a larger customer base. As technology continues to advance, an increasing number of individuals rely on these apps and other digital channels for their financial requirements.
In addition, the rise of social media has facilitated the development of an ideal market for FinTech services. The popularity of sites such as Instagram, Snapchat, and Twitter has increased demand for innovative financial products and services. From the perspective of FinTech, the number of users is growing swiftly, and businesses find themselves competing for ever-shrinking markets. During the course of a year, the average American uses eight distinct checking accounts, according to Bankrate.
Fintech’s ability to revolutionise the complete financial system is another factor that garners a great deal of attention. It is also essential to note that the majority of Fintech companies develop their products with the aim of enhancing the user experience and reducing costs for the final consumer.
Targeting all categories of banking customers is possible.
FinTech companies can now reach a diverse array of customers. FinTech firms, for instance, are targeting younger generations because they spend less time saving money and more time spending it. Nevertheless, this does not imply that senior individuals cannot benefit from FinTech. It is true that you may have less disposable income as you age, but the amount of money spent on savings and investments tends to rise, and you can rely on your retirement fund to provide adequate income. If you find yourself in one of these circumstances, you can always rely on FinTech companies to provide the resources you need to save money and achieve your financial objectives.
Many FinTech companies offer specialised features to cater to the requirements of specific customer segments. Some FinTech companies, for instance, specialise in providing financing to small and medium-sized enterprises (SMEs), while others cater to small entrepreneurs and freelancers who may not qualify for conventional funding. Others attempt to serve consumers who lack access to traditional banking products due to their low incomes.
4. Interest-free and Shariah-compliant products have a global niche market.
FinTech’s ability to reduce transaction costs is one of its most significant advantages. Typically, traditional financial institutions charge exorbitant fees to execute a single transaction. For instance, if you wish to establish a new savings account, you can anticipate paying hundreds of dollars. However, FinTech companies typically charge no fees or a negligible fee that is affordable.
Another significant advantage is that FinTech can be readily converted from conventional and traditional interest-based banking to interest-free and Shari’ah-compliant products and services. The prohibitions on usury and interest should be observed by financial institutions in accordance with Islamic law. In nations where Islam is dominant, these norms are strictly enforced. However, FinTech companies frequently operate outside the country’s borders, allowing them to provide interest-free loans and Shari’a-compliant financing or investment products worldwide.
5.It could be integrated with a marketplace, as is the current trend, that offers BNPL and EMI services in a Shari’ah-compliant manner, such as through murabaha, ijarah, and musharakh, etc.This must be an important milestone for the Fintech industry.
The development of digital currencies and virtual credit cards is a significant advancement for the FinTech industry. Businesses and individuals are increasingly adopting digital currencies, and this trend shows no sign of abating. One of the benefits of digital currency is that it eliminates the need for middlemen. Rather than interacting with a third party, transactions can be conducted directly between parties. Therefore, it is possible to connect the blockchain technology to various existing payment systems in order to establish an entirely new system.
Blockchain technology is a decentralised database that is continuously updated and securely stored on computers around the globe. It is intended to prevent fraud and ensure security, dependability, and openness. For instance, it is possible to integrate blockchain into a marketplace, enabling direct transactions between buyers and merchants. And these transactions can be conducted with complete assurance.
As we can see, FinTech is the future of online banking, and its growth will only accelerate. We are witnessing an innovation eruption that is spawning entirely new opportunities. In addition to enhancing how we conduct business, FinTech companies can also introduce new products to the market. With the proper approach, FinTech will likely continue to dominate the industry over the next several decades.
Visit www.greensfin.com if you are interested in interest-free or Shari’ah-compliant fintech products and their solutions.
