Financial innovation can be interpreted as common developments gradually occurring in the financial services sector. This includes contemporary markets, technologies, instruments or institutions. Fintech refers to a distinct area of ​​financial innovation where the focus is transformative technology. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayFintech is short for financial technology. A good example of fintech is a P2P lending platform called Zopa, which allows people to access loans directly from connected devices. On the other hand, financial innovations may look like the same thing, but they are different devices and institutions that enable people to use financial services. Existing examples of financial innovations include debit cards, ATMs, and traditional banking services. Traditional banks have been around for centuries. Fintech is bringing banking into the modern era, but it now threatens to overtake banking altogether. They could become superior to banks because they are able to manage big data and offer flexibility in money management in ways that banks would have to completely rethink to match. People in the 21st century expect more from their banks, but they are not designed to provide such services. Blockchain technology is one way fintech is disrupting financial services. Bitcoin was the first distributed ledger network to implement blockchain technology as a store of value. Blockchains are now being touted as the future infrastructure of the financial sector, alongside dozens of other sectors. Not all blockchain networks are decentralized, in fact most are simply distributed, with no exception for Bitcoin. There is considerable dominance with a few nodes in the form of mining cartels. Complete decentralization means having no government authority, powerful dictator, or group of humans controlling the network. Without government authority, this means that anyone with a mobile device and an internet connection could send or receive stores of value globally with minimal disruption or surprises within such an ecosystem. Banks are aware of the disruptive nature of blockchain technology and are devising ways to implement it in their operations. However, it is unlikely that they will ever provide decentralized, only centralized distributed ledgers. While traditional fiat transfers are expensive and slow, passing through at least four intermediaries per transaction, blockchain technology eliminates the need for legacy merchants, acquirers, networks and issuers, making transactions faster, more secure and cheaper . Non-bank financial companies (NBFCs) using blockchain technology are emerging faster than banks are adapting. The remittance industry is one of the sectors adopting blockchain technology. Millions of people around the world rely on services like Western Union or MoneyGram to send money across borders, but fintech startups like BitPesa and TransferWise offer simpler solutions. Through these apps, people who do not have easy access to remittance service branches can send or receive money without having to leave their homes or pay high fees. Keep..