RACO Investment founder Randall Castillo Ortega explains the impact of FinTech on finance

It is clear that FinTech is changing the way consumers bank, whether with virtual assistance, digital payments or even socially conscious alternatives to traditional banking. Randall Castillo Ortega, the founder of RACO Investment and an expert in finance, explains how FinTech is changing the financial ecosystem.

Despite the fact that tools such as multi-factor authentication and digital payment are not new, new technologies are constantly being developed around the world. Fintech has become an integral part of consumers’ lives. In addition to providing convenience to consumers, these FinTech trends also protect them from fraud.

In addition to revolutionizing the financial ecosystem, FinTech is creating new opportunities for financial service providers and changing the way people interact with their finances. In addition to offering individuals access to and management of their finances in a more simple way, FinTech also provides businesses with new financial management tools.

It also helps develop new financial products and services that are more practical and efficient than traditional ones. Explains Castillo, “The products and services are usually more affordable and tailored to the needs of the consumer. FinTech not only provides access to financial data and insights, but it also makes the financial system more transparent and secure.”

Often, FinTech companies are at the forefront of the development of greener finance. As environmental issues become more widespread, new solutions will emerge – and they are often at the forefront of making finance more sustainable. Banking in a place that values ​​global impact over profit and is environmentally friendly has never been easier these days.

The trend in recent years has been to allow employees to receive their paychecks early, but some FinTechs are taking it one step further and allowing it almost whenever they want.

Employers are now partnering with FinTechs to allow workers to access earned wages when they want, in addition to earlier access to paychecks. If overdrafts occur, bills need to be paid, and early payday loans are avoided, this can be very helpful.

Using artificial intelligence (AI), machine learning and automation, banks and consumers are approaching finance in a whole new way. The World Economic Forum published a report in 2020 that found that 90% of FinTech companies and 80% of traditional banks have used some form of artificial intelligence. Notably, 56% of all firms are already using AI for risk management, while 39% are either in the process of implementing AI or plan to do so soon.

By harnessing the power of AI, banks and FinTech companies can offer more protection for their customers’ finances. AI technology has become a staple in evaluating risk, as well as detecting and preventing money laundering and payment fraud. As a result, consumers can rest assured that they are receiving higher levels of security when it comes to their finances.

Metaverse and Oculus Quest introduced simulated experiences that were more advanced and accessible, and virtual reality (VR) is now becoming a frequent topic in FinTech discussions. As VR technology takes banking one step beyond virtual assistants and automated transactions, consumers can have a much more immersive banking experience without ever leaving their home.

Almost every year, new technology appears that changes the norms in banking and finance. Decades ago, concepts such as sending money via an app to a friend or using a mobile wallet were unthinkable. There is no doubt that these developments are important to our daily lives, but they are often taken for granted.

Although new technologies are not perfect, like their creators, they often take years to fine-tune. These innovations can increase financial security and ease the long-term, as well as add convenience and security to consumers’ finances.

About RACO Investment

RACO Investment is a financial investment company serving small and medium-sized companies in Panama and Costa Rica. It was founded by Randall Castillo Ortega, an expert financial advisor with roots in the import and export industry in Latin America. The firm has helped many startups find the financial support they needed to get off the ground. It has also contributed with bridging loans to help those who want to restructure or improve operations.