Every time you flip through a news channel and catch a glimpse of the latest currency exchange rates, commodities prices and other indicators, do you ever stop to think about just how much goes into merely bringing you this information? If you don’t, there’s no better time to do so than the present. At the very least what this will do is give you a new appreciation for the often mystified world of Financial Technology, and at best you will be able to spot some gaps you can perhaps capitalise on yourself to markedly improve your own financial situation.
Basic FinTech computing
If you’ve watched the iconic Leornado DiCaprio movie, Wolf of Wall Street, the “missing” computers referred to by his character when he was about to start a new job with a new firm are beyond the basics of fin-tech computing. His new boss/supervisor tells him about how they trade directly off of the “pink sheets,” which perfectly demonstrates how at that level fin-tech is already becoming a little more sophisticated than necessary.
At the most basic of levels, fin-tech computing provides the record-keeping and updating capabilities required to fulfil trade orders and update the public-facing side of the record-keeping infrastructure with the latest information, having taken into account the effects of all the trades. Thinking about it this way should already have you marvelling at just how sophisticated the basic computing is, running the financial industry.
Networking and connectivity
The financial sector is the biggest client of the ITC sector (Information and Communication Technology), which is why as a consumer you might be baffled to find that while your connectivity services might be acting up at times, the banks and other financial sector entities still enjoy a workable service. These big clients are prioritised over regular consumers, simply because the world pretty much runs on the records being created and updated within the financial sector.
None of that would be possible without the networking and connectivity technology which goes into running the financial sector, for instance if you try to complete an electronic payment, perhaps with your credit card, for whatever product or service you require instantly, your bank wouldn’t be able to approve and complete the payment timeously, if it all, without the networking and connectivity of the World Wide Web among others.
The most visible fin-tech node you likely interact with is that of front-store platforms like e-commerce stores or even something like a POS pay-point machine. As suggested, a lot more goes into completing that transaction than what meets the eye, because there are associated costs like the price of the raw material commodities that make the product, so too things like cross-border taxes and duties, etc.
So next time you complete your order for CBD worms to be delivered all the way from someplace like Orange County, take a moment to consider all the technology that went into making this transaction possible. At the very least you’ll come away with a greater appreciation for those worms – they’ll taste 10 times better, if that’s at all possible!