Significance of Banking Sector: –
Banking sector is a wide range of sector where all the financial transactions take place. This sector is spread world-wide as the complete world runs with these currency transactions only all the time. Banking sector involves many types of sub-sectors like financial sector, investment sector, loan sector, and many more which would go in detail. As the days passed by now and we are in a rapid technological growth in all aspects we need to update ourselves and use the technology to comfort ourselves. Banking as a Service helps us in dealings with financial transactions digitally. Financial Technology short formed as FIN-TECH helps us in learning digital transactions and helps us to come out of traditional method of financial transactions. It competes with traditional form of banking transactions and deliver hassle free cyber banking transactions.
Types of Digital Financial Sectors:
API-BASED STACK:
In this process all the online banking application would be in an interface and helpful in identifying the account holder’s details and make the transactions easier without any confusion. This application would likely be confined to only one bank, that is each bank would have their own API software. It is an internal application used many banks. By using this application interface banks can easily perform their duties by giving accurate assistance to their customers in their transactions.
CLOUD-BASED STACK:
Cloud based stack is a process in which two or more banking connection that is two or more banking interface. That means if one customer wants to transfer their amount to from their account of one bank to other bank before digitization, they had to withdraw the amount practically and then they had to again deposit it in other bank in reality, which involved more of time waste and long procedure. Now after digitization the process became so easy that they can transfer the amount so easy from one bank to other. This is because of cloud based stack. It is just an example what was coated before, there are many other scenarios like this they are Foreign Exchange, Mutual Funds, and Loan processing and many more. Cloud based interface is something that all the banks have one common software in which all the details of account holders would be present which can be used when in need of transactions. The only draw back we should be aware of the usage of applications while using them, because with half knowledge we may tend to lose our own money.