Fintech is rapidly expanding its reach and involvement in almost all sectors of our lives. Online banking, easy credit, crowdfunding, global remittances, and so much more are now possible because of the versatility and vast applicability of fintech.

The global food industry is one of the most successful industries due to its essential standing in our natural system. It has massive control and influence over major global markets, relationships, and decisions. With the uprise of the fintech industry, there has been a congruous integration of financial technology with the food industry, resulting in an influx of novelty and innovative ideas resounding the vast scope of technologies. 

Although the food industry can be bifurcated into two parts, the agricultural sector, and the retail food segment, it primarily comprises the latter. In this article, we will focus on the growth and development of fintech in the food and beverage industry.

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The Food and Beverage Industry

The global developments in the food and beverage industry have been enormous, due to some reasons. The industry is expected to grow by more than $6,500 billion by the end of 2022, with a CAGR of 9.7%, and almost by $9,000 billion by the end of 2026. 

The two main reasons behind the expansive growth of the food and beverage industry are the global population explosion and the increasing adoption rate of technology. With the people’s participation steadily multiplying globally, it leaves little room for the non-development of this mainstream business sector. 

The integration of finance and technology has influenced the core functions of several major segments, and the food industry is no different. Numerous platforms and services are being offered by several companies that supplement an efficient and innovative food industry. From small businesses to behemoth chains, the application of fintech has been quite versatile. 

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Fintech in the Food Industry

The number of opportunities for fintech in the food industry is countless due to the scope of the technological developments that can help streamline and boost this industry further. The following platforms and services have been the most popular:

1. P2P Lending

Peer-to-peer lending has been one of the most helpful applications of fintech in the global environment. When it comes to the food industry, uncountable small businesses are relying on P2P lending platforms that help set up and sustain their businesses, proving this to be one of the most relevant uses of fintech in the food industry.

2. Sorting Food Wastage

Food wastage is directly associated with financial losses. Every produce or product that goes to waste suggests financial loss, which is detrimental to an organization’s financial health in the long term. Several companies like Agromovil in Colombo have created platforms that link small-level farmers to combat the problem of food wastage, bringing a big win for fintech.

3. Investments

The competition levels in the food industry are skyrocketing, resulting in small and large businesses needing to invest in machinery and technology that helps them automate some steps of the processes. 

To facilitate small businesses in purchasing high-priced technology, many companies like Siemens are offering financial solutions like rentals, leases, usage-based programs, and more to ensure empowerment by lowering operational costs and increasing operational efficiency.

4. Point of Sale Services

With the rise in the number of online and virtual payments in the food industry, multiple payment methods have surfaced globally, inviting customers to make payments by choosing from whichever payment method suits their needs. 

5. Others

There are several other applications of fintech in the food industry, like gamification, where food applications enable users to earn points, which they can then redeem in the form of discounts. 

Apart from these, there are countless other ways in which fintech has proven to be a true winner in the food industry, in terms of versatility, usability, and novelty. 

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Other Applications of Fintech in F&B

Because of the tremendous potential of fintech innovations in the food industry, the number of patent applications related to fintech in the food and beverage industry has increased. PepsiCo Inc has the highest number of patent applications, followed by Uni-President China Holdings Ltd.  

The largest market for the F&B industry is the Asia Pacific region, followed by Western Europe and North America.  

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To Conclude

 The food industry is robustly expanding because of the growing number of participants. As more cultures interact with each other along with the increasing use of the internet, the more scope there is for the food industry to evolve and change, giving way to more fintech opportunities. As both industries evolve individually and together, the expanse of technology increases, ensuring a very competitive environment in the future. 

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Remote working is rapidly picking pace in the global working setup nowadays. Only a few years back, remote working was seen as an alternative to only a handful of companies policies. In the present day, remote working not only became the saving grace during the pandemic but has also proven more efficient and beneficial for many industries. Thanks to the brilliant scope and reach of technology, many of us had the privilege and opportunity to continue in remote setups.

Many companies have now started offering remote working setups owing to the massive success of remote working and its contribution during the pandemic. A large number of these jobs offer permanent remote working systems. 

A few industries have witnessed the impact of the growing demand for remote workers globally, where it seems to have achieved an exhilarating niche, fintech being one of them.

Fintech has been in the limelight for some years now, owing to its rapid development and evolution, which has disrupted some of the mainstream past practices. With fintech’s steaming engine refusing to die, the industry has become one of the most valuable industries ruling the global economy. Unlike other industries that underwent turmoil because of the pandemic, the fintech industry experienced an excellent growth trajectory. 

The prominence of online payments, tap-and-go payments, cross-border remittances, e-wallets, UPI (Universal Payment Interface), and many more technologies grew globally due to the impact of Covid-19 on businesses and our daily lives. With governments imposing nationwide lockdowns, it became impossible for people to sustain their businesses, jobs, and livelihood and provide for their families, giving rise to the need for alternatives to the existing setups. 

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Remote Working Prompting Fintech Opportunities

Although driven by the pandemic, remote working and fintech have developed a symbiotic relationship, where both have considerably benefitted from the other. Fintech’s contribution in facilitating remote working is undebatable. Powered by technology, the fintech industry has broken several conventions and made pathways that have helped connect the world better. With remote working’s application and prominence actively growing, there have been uncountable growth opportunities for fintech. The most distinguished category that has driven the success of this symbiotic relationship is e-Payments.

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E-Payments and Remote Working

E-Payments have been one of the single-most effectual factors that have helped people sustain their businesses, livelihood, and jobs during the pandemic. As more and more people work remotely, the role of e-payments takes a bigger and more relevant shape.

People living in cities all across the globe are ordering food online like never before, giving rise to fintech opportunities. Concepts like “Staycation” and “Workation”, have emerged due to the growing prominence of remote working, giving way to more fintech opportunities in the form of virtual cards, online payments, etc. Remote working has also had a massive contribution to online shopping. Being confined to limited space with limited people nudged the masses to explore online shopping like never before, which gave behemoths like Amazon even further success. With the online market becoming the new normal, countless new businesses established an online-only presence, compelling many existing businesses, to also explore and offer online portals, making way for more fintech integration. 

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Final Thoughts

The roles of fintech and remote working have genuinely flourished with time, and their importance has grown exponentially across the globe. Fintech has seen some remarkable opportunities come it’s way owing to the growth of remote working. As more people choose remote working over fixed offices, the number of fintech opportunities grows. Remote working and fintech have grown extensively together throughout the pandemic, and even today they continue to rapidly expand.

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The past few years have witnessed a rapid takeover by digitalization in several industries. There has been massive inflation in the dominance of digital platforms and services, from automobiles, healthcare, and consumer goods to financial services. Out of all industries, the transition of the financial sector to digitalized and automated platforms has been most evident and rapid. 

With fintech startups and organizations developing technologies that have successfully disrupted the existing system, people have had countless opportunities to explore and grow their financial health. 

Digitalization has opened doors for diversified investment options, like digital gold, cryptocurrencies, NFTs, digital real estate, etc., empowering people with better investment options. All these options have received a warm welcome globally, owing to their accessibility and quick and simple trading. 

The key factor that has induced their immense popularity among the masses is their newness in the market. It is common knowledge that the value of a new product or an asset is usually at its lowest when its demand is on the cusp of reaching its peak. While the demand for all these digital assets and products has increased manifold in the past few years, there is still a lingering notion that their value would gradually inflate over time, giving rise to lucrative investment options and, in turn, a high demand.

Digital Gold is a slightly different investment option compared to the other digital products available for investment nowadays.

Digital Gold

Investment in gold jewelry and products has always been perceived as a lucrative option globally. Yellow metal is one of the fundamental factors that influence the world’s economy. The traditional method of investing in gold is to purchase the physical commodity and store it in various forms, like jewelry, coins, biscuits, bricks, etc. 

However, digital gold brings people the best of both worlds, where its valuation is the same as its physical counterpart, and investors can relax and buy smaller quantities of gold according to their budget instead of the weight of the gold. The principal USP of digital gold is its practicality, where the virtual value remains the same, without any restrictions on the minimum amount. Owing to this freedom, people have found digital gold to be one of the most practical investment instruments.

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How Digital Gold Works

Just like a stock trading market where stock buyers purchase stocks from companies and hold them till their value grows, by either selling or purchasing a few, till the buyer has reached the blissful place beyond breakeven, the digital gold market thrives on a similar concept. 

Investors can purchase digital gold for the lowest monetary valuation and can keep adding to it over time to build their digital gold portfolios. There is immense freedom in the digital gold market, making it one of the most viable investments.

Benefits of Digital Gold

Other than the freedom of investing in digital gold, there are a few other benefits that it offers:

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Safety and Security

With digital gold, investors need not worry about its safety and secure storage as it exists virtually on insured platforms, which implies that it is safe from robbery and other malpractices. 

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Freedom of Investment Value

There are no limits on the minimum value invested in digital gold. An investor’s digital gold portfolio can be as low as they want and can increase over time up to a maximum limit. 

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An Asset for Collateral

The value of the digital gold can also be used as collateral against loans, which is a useful value proposition for small loan amounts as people can then protect other assets that allow lower liquidity. 

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Easy Trading

Digital gold can be traded easily on digital platforms, providing immense freedom for people of various age groups with different levels of knowledge about the market and economy.

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Genuine Commidity

Digital gold is 24K yellow gold, with a purity of 99.99%. If investors want to convert their digital investment into physical gold, they can be assured of its genuineness.

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The Risks Involved

The digital gold has proven to be a successful investment instrument for many amateur and professional investors. However, virtual gold has its risks and cons that decrease its viability.

 In some countries, inadequate regulations surround digital gold, leaving an open space for a risky future. Another disadvantage is that there is mostly an upper limit for investing in digital gold, which restricts investors who want to invest large sums in digital gold. Adding to the woes of digital gold investors is another downside, which is the limitation on the period that is allowed by platforms to store digital gold. Sometimes, digital gold investment providers restrict the time allowed for an investor to store their gold, after which they would have to either sell or withdraw their gold investments.

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To Conclude

Digital gold has proven to be an easy investment choice for many people, especially those who want to invest low sums of money for shorter intervals without the risk of an unstable economy. Gold is an invaluable metal revered globally, making it a lucrative investment option. As gold prices continue to rise, there is hope for the market of digital gold to inflate. The developments in technology and fintech have been massive, adding to the bright future of digital gold. With increasing demand and rapid developments, it is safe to say that digital gold will continue to become a powerful investment instrument in the coming years.

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The disruption caused by various technologies and how most of our activities in the present world have transformed to be more technology-inclusive and dependent has been colossal. The adoption rate of technological equipment that supplements our everyday lives is higher than ever. Smartphones, smart cars, and even smart vacuums have acquired a prominent position in our society. Voice or speech recognition technology is one of the technologies that have found an increasingly growing market globally.

Voice-enabled technology and devices like Siri or Alexa have transformed from intimidating to routine technology that facilitates daily activities in brilliant ways. As one of the fundamental characteristics of all living beings is their ability to speak and communicate, the intention of introducing and employing such technology is to create more bridges to fill gaps between devices and their users. 

This voice-activated or speech recognition technology has witnessed a massive influx of new on boarders in the past few years. The industry’s size has grown exponentially, from $2 billion in 2018 to almost $40 billion in 2022, and is expected to continue expanding. It is an exciting new augmentation in technology that is used in numerous ways.

How Voice Technologies Work

Voice technology, in common knowledge, works by collecting, translating, and analyzing the user’s voice and words. While the sole contribution of the user remains to speak coherently and directly to the device, the device has a more complex role to play. 

The device collects and filters through the sounds spoken to it that is converted into a readable format for the device to analyze and find meaning in, by using software and algorithms. When the device has enough information to understand the instructions or the words, the software creates appropriate responses that are relayed back to the user. 

The voice technology devices are built-in ways to learn sounds on the go. So, if a single user operates the device, the results would improve over time, owing to its ability to understand the user’s words more effectively. However, if several users with different tones and accents use the same device, the device’s vocabulary, per se, would magnify more, but it would take much more time for the results to show.

Voice Technology Application on Various Media

Speech recognition remains an unsaturated industry, with massive potential and a steadily growing usability. Voice recognition has already set foot into quite a few industries like:

• Automobiles

The automotive industry has been a pioneer in adopting voice technology. Ford introduced Sync, an application that enabled drivers to make phone calls and control their music systems using voice recognition.

• Consumer Goods

The consumer goods industry is the largest industry currently employing voice technologies. Devices like Siri, Alex, Home Pod, etc., by Apple, Amazon, Google, and more have disrupted the home appliance industry. Using these devices to control music, operate connected devices, like smartphones, and carry out activities like making phone calls, narrating articles, or even simply talking has become a routine for many people globally. 

• Medical

Kaléo’s AUVI-Q is an example of how speech recognition is applied in the healthcare industry. This device is an epinephrine auto-injector, which gives voice instructions to administer relevant drugs to allergic patients. Another way of using voice technologies that have become very popular is to consult devices like Alexa to surf the internet and let the user know of any solutions to their medical problems or to help the user contact medical facilities if need be. Although relying on internet-provided solutions for medical emergencies should not be a practice, there is no way yet to filter out such questions and activities. 

• Hospitality

In the hospitality industry, voice-enabled technology is used to assist guests in making their stay and experiences more enjoyable. Devices like Echo provide concierge services in hotel rooms themselves and guests can also use these services to control the lighting, air conditioning, etc., in the room, facilitating their stay further. 

• Fintech

The fintech industry is a giant bubble that is rapidly inflating. Voice technologies have become an extremely valued augmentation in fintech, where applications enable users to conduct voice-controlled payments and transactions. Voice technologies are also used as a security medium that stores, analyzes, and memorizes the users’ voices, and are used while logging into banking apps. 

• Others

The applicability of voice technologies is continuously being assessed for other industries like government applications, which would allow users to avail themselves of government services using this technology.

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Closing Thoughts

Voice technologies are seemingly becoming a mainstream addition to the world of technology. With countless applications and immense versatility, voice recognition can be molded into more effective and advanced solutions that can be absorbed into various industries and platforms. 

Speech recognition can also be used for facilitating businesses by helping make business processes more efficient digitally, like setting up meetings, making calls, etc. Even though voice technologies are yet to reach perfection in understanding different dialects, accents, and tones, the future of voice technology remains bright.

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Education is one of the fundamental pillars needed to build a prospering and evolving society. In our world today, where finance and economics form the core of all operations, financial literacy is not merely an option chosen by a few but an integral part of the system adopted by a majority of the population.

Financial Literacy: Meaning

By acquiring financial literacy and education, a person develops the ability to understand the workings of the economy and financial markets to effectively utilize financial resources, skills, and management techniques which would help them make more effective decisions regarding their finances. Money is the indispensable fuel of our society, which forms the foundation on which our world runs. Financial literacy helps build a clearer and better understanding of how different aspects of money work like investments, budgets, expenditure, etc.

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The Fundamental Elements of Financial Literacy

• Budgeting

A budget helps to streamline, allocate, and monitor money, which has proven to be one of the most effective methods of handling finances. Nowadays, multiple smartphone applications help users develop budgeting skills and provide easy-to-navigate platforms for creating and organizing budgets.

• Interest Rates

An underrated component of the financial world, interest rates, is crucial to analyzing and gauging savings and expenditures. Interest rates are everywhere, governing monetary channels that decide the future of global finances; banks, financial institutions, lenders, borrowers, and many other members of the financial community rely on interest rates. Global and domestic factors determine interest rates targeted to get maximum returns while remaining viable.

• Savings

Savings are an integral part of the financial system that is mostly not effectively followed, leading to a burdened future. It is advisable to start learning and practicing saving early on in life to attain deeper knowledge to optimize savings.

• Credit-Debit

Debit-credit is the balance on which the financial system runs. Understanding how to protect and increase your credit value and meet your debts is one of the most effective ways to secure the future. 

• Security

With digitalization paving the way for modern finance, data, monetary security, and safety have become critical parts of gaining financial literacy. Understanding how your data is stored and utilized and whether or not you should share a particular piece of information is more important than exploring new platforms that provide exciting services.

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The Importance of Financial Literacy in Fintech

The fintech industry has boomed in recent years, disrupting the financial world. With most financial services and products shifting to digitalized platforms, it has become imperative for users to understand and be aware of what the fintech industry is offering and how it affects them.

Financial literacy in today’s day and age has a slightly different derivative from how it used to be. With online and neo banking, e-payments, cross-border remittances, quick loans, etc., the mere understanding of the five components of financial literacy is not enough. While these components still form the base of financial literacy, several other aspects have also emerged as fundamentals of financial knowledge. Some of these aspects include:

• Data Sharing

Digitalized platforms require users to share their data, which is mandatory for all trustworthy platforms. However, users need to be wary of identifying honest platforms from fake ones, which could prove detrimental to the user. Protecting financial data and personal information is the most critical aspect of adopting digitalized financial platforms. 

• Diversified Investments

In today’s day and age, people are not solely relying on fixed deposits and mutual funds from banking institutions for investment purposes. Various streams of investments are available nowadays, like digital gold, cryptocurrencies, NFTs (non-fungible tokens), etc. Exploring such investments is an effective way to enhance financial security as these investment platforms hold relevant positions in today’s world, providing competitive rates and colossal returns.

• National and International Regulations

As remittances within national and international boundaries are easier to carry out now than earlier, it is important to know and understand the regulations and compliances surrounding them. Proper documentation, secure platforms, and trustworthy senders or receivers are a must to carry out digital payments. 

• Services and Products

With technology increasing its versatility by branching into different forms like voice technology, artificial intelligence, etc., there has been an explosion of fintech services and products that have disrupted our existing financial system. Therefore, users need to explore the different services and products in the market to enhance their user experience. Products and services like e-cards, e-wallets, voice recognition, eKYC, etc., can help users handle their financial activities more efficiently.

• Security

Data security and safety are the prime most significant aspects of digitalized finance. While carrying out online transactions or feeding personal data onto digital platforms, it is crucial to protect data at every step.

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Final Thoughts

Like all other forms of education, financial literacy is a significant step toward a brighter and more securer future. While exploring the various aspects of fintech and finance in general, users should learn more about the services offered and how they can effectively use them. The need for financial literacy nowadays is so high that fintech organizations are creating embedded education bundles and platforms that would help users develop better financial knowledge and, in turn, make more informed decisions.

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The world has completely transformed since the arrival of the internet. From bulky desktop computers to sleek smartphones, everything about this industry has evolved in a colossal way. Countless augmentations have made their way into the landscape of the internet, which has influenced our lives more profoundly than we can consciously imagine.

 One such augmentation in the internet world has been the Internet of Things, more commonly called IoT.

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IoT Explained

The Internet of Things is the assimilation of objects, or things, into the world of the internet. These objects can range from things as common as kitchen appliances to airplanes, which can be connected and interlinked to collect and share data using the internet as the base medium. With the advent of computer chips into the common area, not a lot of rocket science and ambiguity remains to transform everyday objects into IoT. By connecting these devices, we can engage with smarter objects that supplement comfort in our lives. 

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How Does IoT Work?

There are mainly three parts to IoT for a common object to join the union:

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Smart Devices

The first necessary component of an IoT is a device that has IT (information technology) capabilities. This device can be anything, speakers, a car, or even the air conditioning system in your home. The primary task of this device is to read, collect and transfer information using inbuilt applications or software.

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IoT Software and Application

The software or IoT application built into the device using computer chips makes up the second component of IoT. This software or application is the medium used by the device to read, collect and transmit data received from user inputs. These applications use advanced technologies like artificial intelligence and machine learning to process and analyze data, which enables the device to respond correctly and intelligently to all user inputs.

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User Interface

The third component that completes the IoT cycle is the user interface that allows the user to interact and engage with the smart device. The user interface is mostly graphical and can be built into the device if it is large enough or it can be in the form of a mobile application or website that allows the user to connect and operate the smart devices.

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The Process 

The entire process in an IoT communication system broadly involves three steps. In the first step, the user feeds in the information collected and transmitted by the device. The IoT application or software analyzes this information, using the internet in the second step. The third step mainly involves the result or the response that the application churns after fetching details and completing the analysis. This response is then relayed to the user, completing the cycle.

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Facts and Figures of IoT

The IoT market has become gigantic as more participants flood in every day. There are more than 50 billion IoT devices actively operating globally currently. The amount of data that these devices generate, is more than 4 zettabytes, which is more than 4 trillion gigabytes. By 2025, the IoT market is estimated to cross $14 trillion in value. 

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The Biggest IoT Companies

There are uncountable companies that have become key contributors to the IoT market. But the ten leading this industry are:

1. Intel
2. Ericsson
3. Microsoft
4. Amazon
5. Google
6. IBM
7. Cisco
8. Verizon
9. AT&T
10. Fitbit

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Major Industries Influenced by IoT

Although IoT has had an influential impact on many sectors, the five most heavily impacted industries are:

1. Manufacturing
2. Transportation
3. Defense
4. Infrastructure
5. Retail

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IoT and Fintech

The scope and reach of fintech and IoT both individually have been witnessed by the entire world. Both these industries have proven to disrupt the usual systems that we were habitual of till a few years ago. With both these industries gaining ground and bridging gaps between them, many developments have prompted the upsurge of tremendous possibilities and opportunities.

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Is IoT the Future of Fintech?

Voice commands, smart cars, smartwatches, contactless cards, etc., have become our reality more now than ever. With IoT gaining moment in other industries, its role in fintech is also steadily gaining momentum. Banks and financial institutions are realizing the potential of this powerful technology.

The IoT technology is disrupting the mainstream banking industry by introducing novel ideas like voice banking, smart branches, contactless payments, new verification systems, and many more.

In the case of voice banking, the customer’s voice is recorded, verified, and used for conducting banking transactions over the phone or online. 

Smart branches incorporate the benefits of technology at every step by allowing cardless transactions and providing instant services like account opening, eKYC, etc. 

With the onset of the pandemic, contactless and remote services gained tremendous popularity for their relevant applicabilities. Contactless payments became a game changer in processing payments by allowing users to touch or tap their smart devices like smartphones, smartwatches, or even bank cards to enable payment. 

New technologies that supplement quicker results and shorter time frames to perform transactions are facing an increased demand globally. Authentication of customers using different technologies like facial recognition or voice recognition is becoming synonymous with the digital age.

With IoT and fintech integrating pathways, the two most affected segments would be customer experience and data management. IoT devises new ways of allowing better and faster transactions while continuously collecting, processing, and analyzing data received from customers. This process helps shape the customer experience industry better, while also improving the standards and quality of data. 

This way, IoT has already become an integral part of fintech, and the future only looks brighter seeing these two industries grow together.

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