The goal of financial technology (often abbreviated as FinTech) is to use new technologies in the finance industry. This can include cryptocurrencies like Bitcoin, digital tokens, or peer-to-peer lending apps. It can also be applied to traditional financial services firms such as banks. These firms can use FinTech to better serve their customers or improve internal systems.

One of the key innovations that can be classified as fintech is blockchain technology, which is used to create a transparent digital record of transactions and ownership. This can allow for easier, faster and less costly transfers of money or assets. It can also help in improving the efficiency of financial systems by providing a way to track records across different organizations and locations.

Other important applications of fintech include all-digital banking, open banking and robo-advisement. All-digital banks, often referred to as neobanks, enable people to access their money and banking services through mobile apps and websites. These new platforms offer a range of services that can be tailored to the individual needs and behavior of the user. Robo-advisers, on the other hand, are algorithms that can make investment or financial planning recommendations with minimal human intervention or oversight.

Many of these innovations are being driven by consumer demand, especially in emerging markets. In addition to offering consumers more choice and convenience, these new tools are transforming the financial landscape by expanding financial inclusion. For example, e-wallets and mobile banking allow people to make payments from almost anywhere in the world. This enables people to avoid costly transfer fees and bank branch visits, as well as access the same services as those with established banking accounts.

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