Cryptocurrencies: 3 ways in which technology is changing finances

Cryptocurrencies: 3 ways in which technology is changing finances

Cryptocurrencies: 3 ways in which technology is changing finances

1920 1080 Abigail Martinez

Fintech  goes beyond online transfers or cryptocurrencies. The new technologies applied to the financial sector have an impact not only on personal finances, but in their daily life in general.

In 2010, approximately a quarter of the world population was connected through the internet; by 2017, that number had increased to half the population of the planet. Currently the use of the internet and mobile devices are on track to connect 8 billion people by 2024.

Financial inclusion

In terms of finances, these new Internet users will want to have access to the same banking services that each one of us, even the sectors of the population that tend to stay away from banking institutions.

Developing countries use mobile devices to access banking services that conventional systems have restricted, creating access to the ability to save money safely, transfer money and make payments.

AI. as a investment manager

The use of artificial intelligence and neural networks to process data can help change the form of credit assessment. Companies like Smart Finance Group are using artificial intelligence to minimize the default rates of tens of millions of microloans.

Analyzing the personal data of the users, mainly the data coming from their mobile devices, this artificial intelligence can generate a credit score.

The benefits of this type of application of artificial intelligence, not only help improve loan repayment rates but also process applications in seconds.

Loans backed by blockchain

With blockchain technology, cryptocurrency ledgers help to achieve the transparency necessary to evaluate credit histories and loan compliance, in an unquestionable way. The smart contracts executed in these accounting books provide necessary information to replace unnecessary agents, such as banks, allowing individual borrowers or companies to connect directly with potential lenders.

The technologies applied to finance have the capacity to change the restrictive schemes that keep a large segment of the world population unbanked, and both the internet and mobile devices are increasing that inclusion little by little.

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