Fintech products succeed because they offer users clear benefits that extend beyond simplified and convenient alternatives to existing financial services. In fact, it’s becoming increasingly clear that fintech can dramatically improve the lives of people throughout the world. As this blog has previously pointed out, fintech-based lending companies are helping small business owners access the capital they need to grow their businesses, which may have major economic benefits for the communities surrounding these enterprises. Additionally, fintech products offer unbanked and underbanked people access to financial services that were previously unavailable to them.
There is also reason to believe that fintech may play a key role in addressing the healthcare crisis. Statistically, more than half of Americans lack the money they would need to respond to an unexpected medical emergency. Those who find themselves in these situations can struggle tremendously to pay their bills.
Luckily, fintech companies are stepping in to help these individuals. Fintech lending companies are expanding Americans’ access to credit by leveraging technology to make more accurate assessments of a potential borrower’s credit-worthiness. They’re also offering financing options for elective medical procedures that people may have otherwise struggled to pay for. Using these services, patients can opt to get treatments that could significantly improve their quality of life.
In the insurance technology (insurtech) sector, a subset of fintech, startups are also emerging that provide customers with greater access to health insurance options. Companies like Ideal Insurance, for example, are launching services that offer specialized health insurance plans, like maternity coverage, diabetic coverage, corporate health insurance, and more.
Even patients who are otherwise able to pay their bills can still take advantage of fintech to make getting and paying for treatment easier than ever. Many experts note that fintech companies are giving patients and doctors convenient alternatives to traditional billing and payment services, simplifying what was once a very complicated and confusing process.
It’s worth noting that fintech companies have been particularly helpful in areas where banks have begun to shut down brick-and-mortar locations. This can be extremely valuable to patients seeking loans to help them pay for medical treatments. In the past, limited access to a bank may have prevented individuals from applying for the necessary loans. Thanks to fintech-based lending alternatives, this is no longer a problem for many people.
Technologies, like blockchain, that have driven fintech innovation, can also improve the burdensome record-keeping process that is ubiquitous in the healthcare industry. To put it simply, blockchain technology records information (like information about a recent transaction) in a digital ledger. Unlike other ledgers, which are typically centralized, a blockchain ledger is dispersed across computers throughout the world. This allows for a greater degree of transparency and makes it much more difficult for hackers to manipulate or falsify information in the ledger.
Companies in other industries are using blockchain to guard against fraud. When combined with fintech payment systems, blockchain can reduce payment fraud cases in the medical field as well. When transactions are immediately recorded on a dispersed digital ledger, committing fraud is extremely difficult, if not impossible.
Most people are familiar with blockchain tech because it facilitates the use of cryptocurrencies like Bitcoin. However, some people point out that blockchain can also offer healthcare professionals transparent options for storing important data. This allows for much more efficient collaboration among doctors, pharmacists, researchers, and others working in the industry. Patients will benefit when healthcare professionals have more opportunities to leverage each other’s work and data to further their own goals.
Experts also believe that fintech lending companies are making it easier for doctors and medical staff to access loans. This is another benefit that has an indirect, positive impact on patients. Talented physicians who may not have been able to grow their practices efficiently in the past can now easily access the loans they need in order to do so. As a result, they’ll have more chances to start treating patients sooner rather than later. They can also use these loans to implement new technologies that can improve the quality of treatment they offer patients.
These are all major benefits that fintech can offer to everyone, from patients to the doctors treating them. They represent yet another reason why the fintech revolution isn’t just a bubble. These products aren’t mere novelties. By expanding access to loans, facilitating the sharing of data among healthcare professionals, and helping patients pay for elective procedures, fintech can have a tremendous impact on the health of people throughout the world.