Banking and finance have always been a hassle. You need to access your money, pay bills, track investments and taxes, and manage risk. Even if you have a great relationship with your bank or have an awesome personal finance system, there’s no beating the hassle of this sector.
But now with the rise of mobile banking, online banking, and the digitization of financial services, banks are forced to adapt and change. The future of banking and finance is technology, and this is leading to a new era of transactions.
The global landscape of financial services is changing rapidly, with consumers increasingly turning to digital services for their financial needs. As more trust goes digital, the bank of the future will respond by going fully digital as well.
With formal banking interfaces in place, users can now expect a much more intuitive experience, including AI features and mobile-friendly tools that make banking convenient wherever you are and on whatever device you use.
More people than ever are banking digitally, this presents an opportunity for banks to transform their structure to meet customers’ changing needs and expectations. Banks need to reevaluate their business models if they don’t want to be left behind by financial technology (fintech).
If you ever make a payment, take a digital loan, transfer money, or check bank statements using your mobile phone, then you are already part of the fintech economy. So what exactly is financial technology?
Contents
What is fintech?
Fintech is the abbreviation for financial technology which refers to any technology that uses digital data, software, and algorithms to improve or simplify financial activities or services.
It is a wide range of new banking products and services that use technology as a tool to make financial processes more efficient, affordable, and accessible.
The term is often used to describe innovative companies and products that are seeking to automate financial service delivery and change the way we handle money, but it also covers other transactional innovations such as cryptocurrencies and blockchain technology.
Fintech companies are startups or established banks that provide digital tools and services to the financial industry or re-imagine their business model using technology. The goal of these companies is to make monetary and transaction management easier, more efficient, and less expensive for consumers.
Financial technology can be applied to any part of the financial system value chain, including payments, lending, and insurance, but it is most commonly associated with two areas such as digital banking and cryptocurrencies.
Technology for banking activities can be everything from cashless payments, to crowdfunding platforms, to Robo-advisors, to digital currencies. So every time you pay or transfer money to someone using your mobile, that’s fintech.
How does fintech work?
Fintech is a broad term that refers to any type of technology that helps make financial transactions more efficient. The term encompasses everything from online payment systems to mobile-friendly apps.
It can take on many different forms, but most involve software or hardware that makes it easier for people to manage their money. Fintech is especially important because it helps bring banking services out of the shadows and into the mainstream.
It can be applied to any type of monetary service, including lending, payments, insurance, and investments. Hence, companies have to make sure that their customers’ information is safe and that their systems are up to date to maintain trust.
Fintech companies also have to make sure that their services are available to everyone, regardless of their financial status, and that their products are easy to use. It uses advanced technology to do everything from automating transactions to risk management.
For instance, when you carry out a mobile payment, the fund is automatically transferred from one account to another. But the same thing when done with cash or check, the recipient will have to make a trip to the bank to deposit the money.
The goal of fintech is to simplify financial transactions and make them more accessible and affordable. It works on simplifying transaction processes by automating procedures and potentially eliminating unnecessary and inefficient steps.
Why fintech is important?
Fintech is opening new opportunities for investors, who can now access previously unavailable information and invest in exciting new asset classes such as cryptocurrencies. The global fintech market is expected to increase at a CAGR of 20.5%, moving from USD 110.59 billion in 2020 to reach USD 699.50 billion by 2030.
The financial technology industry is undergoing a major transformation. The traditional players in the sector are facing competition from new entrants, while established companies are looking to leverage their data and expertise to innovate and grow.
Banks have been around for centuries and have long been considered safe places to store money and make payments. However, thanks to technology, there are now new ways for people to access banking facilities that don’t require going into a physical bank branch or even needing a checking account.
In fact, there are entire industries that have popped up around banking that didn’t exist before. For example, peer-to-peer lending sites like Lending Club allow you to borrow money from other people instead of relying on a bank loan.
And payment apps like PayPal make it easy to send money between friends and family members who live far away. Banking technology is growing at a rapid pace and the world is shifting toward a cashless society, this evolution has been driven by fintech companies.
Fin-tech improves the efficiency and effectiveness of financial services. It covers numerous areas such as digital wallets, mobile banking apps, payments apps, peer-to-peer lending platforms, and many more.
The rise of fintech has led to an increase in competition between banks and other institutions in the financial sector. This has resulted in lower fees and better customer service for clients who use these funding facilities.
More importantly, it has also led to growth in employment opportunities within this industry as well as an increase in innovation among businesses that rely on technology as part of their operations or customer interface.
There is a growing number of companies using technology to provide banking facilities. Financial technology has been around for decades, but a recent acceleration in its development has led to a new category of companies called The Fintech Unicorn.
A Fintech Unicorn is defined as a company that has reached USD 1 billion or more in market cap. As of mid-2021, there were about 743 Fintech Unicorns globally (compared with 165 in 2016). There are around 26,000 fintech companies around the world, employing more than 300,000 people.
Financial technology has been described as “the new Silicon Valley” and it’s easy to see why. It is estimated that in 2022, the Total Transaction Value in the Digital Payments segment will reach USD 1,765.00 billion in the United State alone.
In the past, banks were the leaders of innovation in financial services, but now with the internet and e-commerce, online banking is gaining a lot of popularity. Moreover, due to the 2008 financial crisis, banks face a lot of strict regulation and oversight.
Hence, with the strict law, banks were dropped and slowed down on innovation. While banks were busy dealing with new rules, and regulations, startups started to unbundle the various aspects of online banking and innovations.
Using the internet, big data, and mobile phones, fintech startups were able to give customers a better all-around financial experience. And with technological advancement, a gap started to create between what customers were expecting and what banks were offering.
It is estimated that 90% of China’s banking transactions are carried out online. With e-commerce platforms, and social media, customers started to value user experience and convenience and fintech companies were able to offer that.
What makes financial technology companies more attractive is that they are specialized in only one aspect of banking service and are able to make it as efficient and user-friendly as possible.
Moreover, using technology for banking processes is cheaper and more attractive, which is why customers prefer online banking over traditional banking. Since a gap has been created between traditional banks and fintech companies, non-traditional banking players are also seizing the opportunity.
As banks are finding it difficult to keep up with innovation, big firms that have a technological advantage such as Facebook is also jumping into the fintech industry. In the US, Facebook users can transfer money using the messenger app.
Hence, offering banking facilities is not just limited to startups and banking institutions, big tech companies such as Apple and Alibaba are going big on it with the likes of Apple Pay or Alipay. Apple pay has around 507 million users worldwide and processes more than USD 6 trillion worth of transactions annually.
Alipay on the other hand has 1.3 billion users worldwide. China and India are leading the way in fintech adoption with services like money transfers, financial planning, borrowing, and insurance.
Moreover, WeChat, a popular Chinese social media messaging app has become one of the most common money transfer tools in China. The app not only allows money transfer but also allows users to buy insurance products or invest in funds directly from their smartphones.
WeChat users can also book a doctor’s appointment, order a taxi, donate money and even find a date all in the same app. Tech firms have to some extent the trust and confidence of their users as they are always hooked to their apps.
If users are comfortable enough to share their pictures and personal information on social media, why wouldn’t they transfer money to their friends and family or buy products and services using the same app?
Tech companies are trying to disrupt the banking and finance industries by changing the way people pay and borrow money. And investors are investing a lot of money in financial tech startups. Globally, the total value of investments in fintech companies reaches USD 226.5 billion in 2021.
Tech firms are also offering these banking services to collect more user data. When companies like Apple, Facebook, or Google process a payment for you, they can find out a lot about you.
Tech companies can know what you are buying, where you are buying, and what specific time and day you’re likely to spend money which is valuable information for advertisers. It is also a way for tech firms to hook users longer on their platforms.
For instance, Amazon started as a big online store, and now it makes home speakers, offers cloud services, and produce original movies and television show. The company started with one thing and added more things around it and finance is kind of the missing part.
Financial technology is filling a void in some economies where people don’t have access to traditional banking facilities. It’s estimated that nearly two billion people worldwide are unbanked and most of them have a mobile phone.
But now with banking technology, people can easily have access to financial services and be able to participate in the economy. Moreover, thousands of Fintech startups are offering innovative funding solutions that were previously only available by traditional back peer-to-peer lending platforms.
What’s even more amazing is that with the internet, companies, and startups don’t need to have a physical presence in every city or state like traditional banks, all that users need is to download the app.
These startups are able to offer consumers loans, Robo advisory platforms, insurance, and consumer asset management solutions. And these facilities are not only more transparent in what they charge but also cheaper.
The fintech revolution is bringing Financial Inclusion as people can now easily borrow money for college, and healthcare, build a home or start a business, or securely save their money.
The fintech industry is transforming how financial services are being delivered as it is estimated that 700 million people worldwide went from being unbanked to being banked.
Types of fintech services
There are many types of fintech, but some of the most common include:
Digital lending/ financing
Digital lending is a new and innovative form of lending that uses technology to help borrowers and lenders connect. It allows borrowers to borrow money online, and lenders to provide credit products to customers online.
Digital lending is growing in popularity because it is a fast, convenient, and affordable way to borrow money. Borrowers can borrow money from a variety of lenders, and lenders can reach a wider audience by lending online.
Online financing in fintech refers to the growing trend of online lenders and platforms that provide financing to small and medium-sized businesses and individuals. These lenders typically offer short-term loans.
Fintech lenders have emerged as key players in the online lending market because they offer a fast and easy way for businesses and consumers to get loans.
Mobile banking (payment)
Mobile banking is a type of banking that allows customers to access their accounts and make transactions from a mobile device. Mobile banking can be accessed through a mobile app or website and is important because it allows customers to bank wherever they are.
Mobile banking is growing in popularity because it is convenient and easy to use. Customers can bank from their phones, laptop, or tablet. Mobile banking also allows customers to make transactions quickly and easily.
Many people are using mobile devices to pay for goods and services, and this trend is only going to grow in the future. Mobile payment is becoming so popular because many people already have mobile devices, and they are more likely to use them for payment.
Cryptocurrency and blockchain
Cryptocurrency is a digital currency that uses cryptography to secure its transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
Cryptocurrencies are often traded on decentralized exchanges such as blockchain. Blockchain technology is used as a proof-of-work protocol to secure the network and reward participants who provide computing power.
Blockchain is a growing list of ordered records called blocks. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Once a block has been created, it cannot be deleted, changed, alter, or tampered with.
Insurance (insurtech)
In the world of insurance, technology is a major player. From claims processing to underwriting, insurance companies are constantly looking for ways to improve their operations.
One way that insurance companies are using technology is in claims processing. In the past, claims processing was a time-consuming and manual process. Today, claims processing is increasingly done through computerized systems. This allows insurers to quickly and easily process claims.
Another area where technology is playing a major role in underwriting. Underwriting Insurtech is the application of technology to insurance and financial facilities. Insurtechs are disrupting the traditional insurance industry with their innovative strategies, products, and services.
Insurtech is the use of technology to provide insurance products and services. It includes a wide range of technologies, including big data, artificial intelligence, blockchain, and mobile apps.
Insurtech improves efficiency and customer experience and creates new products and services. Insurance companies are adopting new technologies to make their operations more efficient.
Trading apps
There is no denying that stock trading apps are becoming increasingly popular. With so many options available, it can be hard to decide which one is right for you. They allow you to access your account and trade stocks from your desktop.
There are many trading apps in the fintech industry, but some of the most popular ones include Robinhood, Coinbase, and Binance. These apps allow people to trade cryptocurrencies and other digital assets.
Some of the reasons these apps are popular are that they are easy to use and have a wide range of features. Trading apps allow users to trade on the go and from anywhere, and traders are able to make more informed and efficient decisions.
Trading apps can help traders become more efficient by providing them with real-time information on the markets. In addition, they can help traders build better trading strategies and make more informed decisions.
Banking as a service (BaaS)
Banking as a service is a model where banks offer their customers a range of products and services that allow them to manage their finances more easily. These amenities can include online banking, mobile banking, and financial advice.
Banking as a service can be a great way to stay organized and keep track of your finances, and it can be especially helpful if you don’t have a lot of time to spend on banking tasks.
Banking as a service is a growing trend in fintech, where banks offer their customers a range of financial products and services through a digital platform and reduce the costs associated with maintaining a physical bank branch and reducing the number of people going to banks.
Crowdfunding platforms (capital raising)
Crowdfunding is a way for people to raise money from a large number of people quickly and easily. You can use crowdfunding to finance a project, fund your own business, or support a cause.
Crowdfunding works by connecting people who want to support a project with people who have money to invest. You create a project page on a crowdfunding site and then ask people to invest in your project.
Crowdfunding is similar to a stock market IPO, in that people who invest in a crowdfunding campaign are buying shares in a new company. Crowdfunding platforms allow people to invest in a wide range of projects, including art, technology, and film.
Robo advisor
Robo Advisors are software that automates the process of investing for you. Robo Advisor uses a variety of algorithms to help you make better investment choices. It is a great tool for people who want to save money and have more control over their finances.
Robo Advisor allows you to invest in a variety of different funds and currencies and is also a great tool for people who want to learn more about finance and investing. It helps to identify which assets to buy and sell, and when.
Budgeting apps
Budgeting apps are digital tools that allow users to create budgets and track spending. They can help people save money by tracking their spending and helping them to make wise decisions about what to buy.
Some budgeting apps also allow users to receive notifications when they reach specific spending thresholds, which can help them to stay on top of their finances.
Regtech
In recent years, there has been a proliferation of “regtech” in the financial industry. Regtech is a term that refers to a suite of technologies used to manage and monitor regulatory compliance.
Regulatory compliance is critical for financial institutions, as it can result in fines and other penalties. Regtech can help banks manage their compliance processes more effectively, by automating tasks such as monitoring and tracking regulatory changes, managing data inputs, and outputs, and automating the management of compliance teams.
Regtech encompasses everything from software that helps regulators to understand and manage their data, to new methods of data collection and analysis. Regtech helps regulators manage their workloads and carry out their duties more effectively.
International money transfer
International money transfer services allow individuals and businesses to send and receive money overseas quickly and easily. It can be used to send money to friends, family, and loved ones, as well as to pay for online goods and services.
Digital wallets
A digital wallet is a form of online payment system that stores personal information and credit card details. It can be used to make payments on the internet or in physical stores. It offers a more convenient way to pay for goods and services.
A digital wallet is a software program that allows users to carry out transactions electronically. A digital wallet stores user credentials and allows the user to make purchases online, pay bills, and send money to friends and family.
They also provide a greater level of security than traditional payment methods, as they store your personal information in an encrypted format. Transactions are verified by network nodes through cryptography.
Examples of fintech companies
There are many financial technology companies around the world. Fintech is an umbrella term that refers to a wide range of technologies and services that help make transactions more efficient and cost-effective. Technology for banking processes can include everything from payments to securities trading to lending and is mostly carried on software and applications. Some of the well-known apps are:
- Apple pay
- Alipay
- Google pay
- Amazon pay
- Skrill
- Square
- Paypal
- Kickstarter
- Patreon
- Binance
- Ethereum
- eToro
- Robinhood
- Venmo
- Coinbase
- Cashapp
- Betterment
Fintech services tend to offer more convenient ways to access financial facilities than traditional banking. For example, instead of visiting a branch or ATM to make a deposit, customers can simply use their mobile device to transfer money from their bank account directly to the merchant’s bank account.
These technologies for financing methods tend to focus on specific areas of finance, such as payments or investing. As a result, they usually offer specialized products and banking amenities for niche markets.
Moreover, fintech services are often provided by private companies meaning that customers have more control over their finances and can customize their services according to their needs.
Technology of fintech
The fintech infrastructure is composed of many different technologies. From using the internet of things to collect data to using artificial intelligence to make sense of the data here are the technology shaping the fintech infrastructure:
Artificial intelligence
Artificial intelligence is one of the most important technologies that are being used in finance. It is used to help banks and other financial institutions automate various tasks and improve their efficiency.
This technology is used to create and manage financial models and make predictions about future trends. AI is very good at processing and identifying patterns in data. It is also good at comparing data which is important for predictive analytics.
The use of artificial intelligence in the financial sector helps banks and other institutions improve their efficiency by automating various tasks and improving their customer service.
Artificial intelligence help to speed up processes and reduce the need for human input. Additionally, it helps to identify and prevent fraud by processing large amounts of data to detect anomalies.
Machine learning
Machine learning is a subset of artificial intelligence that allows algorithms to learn and improves themselves without being explicitly programmed. It is a powerful tool used to identify patterns in data, and then use that information to make predictions.
Machine learning can be used to identify patterns in data, which can then be used to make predictions about future events. This technology is particularly useful for predicting the behavior of complex financial markets. However, it is still in its nascent stages, and a lot of fintech companies are still exploring its potential.
Internet of things
The internet of things (IoT) is a network of physical objects or systems that are connected to the internet. IoT is used to collect data from physical objects and systems to help improve business processes.
The IoT improve the efficiency of financial institutions by allowing them to track the performance of their assets and systems. They collect data from multiple sources that are then used to make decisions.
Big data (driven decision)
Fintech is a rapidly growing industry that is revolutionizing the way we transact and access transactional services. Big data is important in this field because it provides companies with the ability to better understand their customers and their spending patterns.
Data is used to develop more targeted marketing and advertising campaigns, as well as to develop new financial products and facilities. Additionally, big data is used to improve the efficiency and accuracy of financial calculations and help predict customer behavior and identify new opportunities.
The use of big data in the banking sector is becoming more prevalent as financial institutions grapple with how to best use data to make better decisions. In particular, big data is being used to help banks identify and better predict trends, and areas of risk, and make more informed investments.
Analytics (behavioral analytics)
Data analytics is essential for banks and other financial institutions that want to compete in the digital age. By using data analytics, banks can identify and track potential competitors and understand how they are performing.
Data analytics help these institutions understand their customers and their spending patterns in unprecedented detail. Behavioral analytics helps to understand customer behavior and trends to improve customer experience and grow revenue.
By understanding customer behavior, banks can better predict future trends and make better decisions about their products and services. Financial institutions can also make better decisions about what to offer, where to focus marketing efforts, and how to improve customer service.
Behavioral analytics also helps banking institutions identify fraud and other illegal activities. By understanding how customers make decisions, companies can identify suspicious or unusual behavior and take appropriate action.
Cybersecurity
The financial industry is one of the most attractive targets for cybercriminals. The cybersecurity of banking entities is an important issue. Cyberattacks can cause financial losses, disrupt business operations, and put customers at risk.
The financial industry is one of the most targeted industries by hackers. In response to this threat, many banks have started to employ cybersecurity solutions to protect their data and systems. These solutions can range from frequently updating software to hiring external security experts.
Blockchain
The blockchain is one of the most important innovations in the world of finance. It is a distributed database that allows for faster, more secure, transparent, and tamper-proof transactions.
Blockchain is a distributed ledger that stores a record of all transactions. It is decentralized, meaning there is no central authority that can stop or reverse a transaction. This makes it an effective way to prevent fraud and protect the identities of buyers and sellers.
It can also be used to track the ownership of digital assets. This is important for ensuring that assets are not stolen or misused. And with smart contracts, contractual agreements between parties can be automatically executed.
Smart contracts rely on a network of computers to keep track of the terms of a contract and automatically execute the terms when pre-determined conditions are met.
Cloud and edge computing
Cloud computing is an important part of the financial technology industry. It allows companies and individuals to access and use software and data remotely. This saves companies money on computing and storage costs.
Cloud computing also improves the speed and reliability of data services and is very important for the financial sector. Companies use it to improve their customer service and financial reporting. They also use it to test new innovations.
Edge computing is a key part of the future of fintech, as it enables quick and efficient processing of large amounts of data. By tapping into the power of the network, edge computing can help banking institutions save time and money by processing large amounts of data more quickly and efficiently.
Additionally, edge computing helps improves the overall user experience by providing enhanced functionality and access to a wider range of services.
Chatbots
Chatbots are an important part of fintech and the role they will play in the industry. They are revolutionizing the way customers interact with technology, and they can help do things faster and easier than ever before.
Chatbots can automate a lot of the tasks that are currently carried out by humans. They are also used to automate customer service and support and are used to help people find and use financial products. The most popular use of chatbots in fintech is to help people with questions about products and services 24/7.
Benefits of fintech
Fintech is a term used to describe a wide range of financial technology facilities. These products can help people save money, manage their finances, and get access to banking facilities that are not available to them through traditional banking. All this provides a wide range of benefits such as:
More alternative/ option
As the world transitions from an analog to a digital economy, so too is the way consumers transact. In the current economy, people are looking for more ways to save money and gain access to more financial products and services. Fintech is a great option for those looking for more service alternatives as there is a wide range of options available on the internet.
Reduce cost/ cheaper
Fintech is a technology sector that provides cheap and efficient services to consumers. In recent years, companies have come up with new ways to provide services that are cheaper and faster than traditional methods as everything is automatically handled by software and algorithms.
Greater speed (fast payment)
The use of technology in transactional processes has become increasingly prevalent as it improves the speed, convenience, and security of transactions. Fintech uses innovative technologies and practices that help reduce the time it takes to make a financial transaction, which can save consumers time and money.
Efficiency
Fintech is a sector that uses innovative technologies to improve the efficiency of financial transactions. It enhances the way user bank, shop, and invest which ultimately leads to cheaper, and faster transactions. Fin-tech companies use innovative technologies to provide better and more efficient services to their customers.
International payment
The process of international payment is not as simple as it seems. One has to go through a lot of processes before the transaction is processed. This includes the conversion of money from one currency to another, which is an expensive process.
There are various reasons why people prefer to use fintech for international payments instead of using banks or other financial institutions. The main reason is that they are cheaper and faster than traditional methods.
Using technology in finance presents a number of solutions in order to make international payments easier for their customers and these include the use of mobile wallets and peer-to-peer networks like PayPal, among others.
Facilitate remittance
Fintech is all about enabling smooth and efficient transactions between different parts of the world. It has the potential to revolutionize the remittance industry, making it much easier and faster for people to send money to their loved ones overseas.
Convenience (ease of use)
Financial technology is changing the way we bank and shop. It allows people to access banking facilities from their smartphones or computers, making transactions more convenient and faster.
There is no doubt that the ease of use of fintech products is one of their key selling points. This is especially true when it comes to smartphones, which are used by so many people around the world.
Valuable advice at any time
Fintech companies provide valuable advice to their customers and they are not only limited to banking but also insurance, lending, and digital currency. and by processing customer data, companies can better understand customers’ needs and wants which can be used to advise them.
Streamline operations
Fintech facilitates the streamlining of entire transaction processes by removing the need for several middlemen, which can reduce the time it takes to complete a transaction as well as reduce cost.
Better risk management
Technology for finance provides a new way to manage risk. It allows companies to be more agile and less subject to the whims of the market. Additionally, it can help eliminate fraud and other issues that can arise during a transaction.
Accessibility (24/7)
Since most of the tasks are automated and carry on the internet, fintech facilities are accessible 24/7, ensuring that users can always access the financial information they need. Users can access their accounts and financial information from any device at any time wherever they are.
Easy to get funding (reach more people worldwide)
Thanks to the growing use of technology, there are now a variety of ways for people to get access to financial resources without having to go through a traditional bank. People from anywhere around the earth can fund projects and receive dividends.
Financial inclusion
Fintech provides a wide range of financial technology solutions. These solutions make it possible for everybody, regardless of their financial status, to access banking services. This opens up opportunities for people who would not otherwise have access to these facilities.
Security
Fintech services are considered to be very secure as they offer a lot of security features. The most common security features are two-factor authentication, data encryption, biometric identification, multi-factor authentication, and password protection.
Financial technology has the potential to greatly benefit consumers by providing them with better ways to manage their finances and make transactions.
It has the potential to revolutionize finance by bringing about greater transparency, increased efficiency, and more affordable access to banking systems.
Future of fintech
Fintech is the use of technology to create financial services. It includes online banking, payment systems, insurance, investment platform, digital currency, Robo advisor, and lending. It has the potential to change how we interact with monetary services, making transactions more efficient and easy.
The fintech revolution is changing the way that we interact with our finances. The banking and financial sector are ripe for disruption as more and more people turn to fintech solutions for their day-to-day transactions.
Using technology for financial processes is disrupting the way we bank, invest, and save money by offering a range of innovative products and services. This has led to a massive increase in transparency in the industry, which is benefitting consumers all around the world.
With fin-tech, the banker of the future will be very different from the banker of today. Bankers of the future will use different methods, and technology and will be highly specialized, with different personalities and skillset that offer personalized banking services.
The future of fintech is about using innovative disruptive technologies to design and deliver financial amenities. The financial platforms of the future will not be traditional banks but instead technology firms.
Moreover, advancements in biometric identification and voice recognition tools will increase banking security and eliminates password which will ultimately open up new opportunities and innovation.
Fintech in the future will be combined with the Internet of Things and wearable technologies, embedding banking in your day-to-day life. Meaning that in the future you will not have to worry about paying bills because your IoT appliance connected to your bank will automatically trigger the necessary action.
Advancement in fintech is making digital banking easier and more accessible than ever before. People are more and more willing to bank digitally. The convenience digital banking offers is attracting a lot of attention and driving the market up.
The worldwide digital banking market is expected to increase by a CAGR of 4.50% from the period of 2022 to 2028. The market size will expand from USD 7.9 trillion in 2021 to reach USD 10.3 trillion by 2028.
Moreover, development in artificial intelligence and machine learning are changing the scales of banks and are redefining their services. AI and ML are providing a lot of value to companies as well as individuals and they are expected to play a big part in the fintech evolution.
According to a survey by Ernst & Young, 68% of respondents are willing to use financial tools developed by non-traditional institutions. It is also estimated that 64% of the world’s population was using fintech applications in 2019.
And with advancements in blockchain technology, the fintech market is expected to expand further. The global blockchain in the fintech market is expected to increase by a CAGR of 47.9% (throughout the forecasted period of 2021 – 2030) to reach USD 31.4 billion by 2030.
Fintech is driving innovation, improving delivery channels, and expanding access to financial services around the world. As we move into the ever-changing investment landscape, fintech is emerging as a key trend and disruptive force.
Final words
By bringing together a wide range of financial technology, fintech has the potential to revolutionize finance in a number of ways. For example, it could make it easier for people with little or no access to traditional banking services to receive basic monetary facilities such as loans and payments.
It could also help reduce costs by making it cheaper and easier for businesses to accept payments. And it could help level the playing field by making it easier for small businesses to compete with larger companies by giving them an edge in areas such as digital marketing.
Fintech is making monetary management smarter, more efficient, and more accessible. It is also making financial inclusion possible for millions of people and business owners who lack access to traditional banking institutions.
Digital technology and startups are set to serve the unbanked, under-banked, people who have a difficult time accessing financial services. Fintech is also working on creating sustainable financial access for all with the help of new software and technology.
The use of technology is changing the way we live, work and interact with money. Businesses are using mobile apps, online procurement solutions, virtual currencies, machine learning, and artificial intelligence, to change the way the entire economy makes payments and manages its finances.
Fintech technologies are changing the way finance is delivered. It is a growing trend that is not only changing how financial products and services are delivered but is also revolutionizing the future of finance.
Innovative Fintech companies are bringing banking and finance to the next level. Technology is advancing at an exponential rate and the need for more financial products and services are growing at an all-time high.
With such a high demand for financial services, an increasing number of companies are launching innovative Fintech solutions to meet the demand for banking and investment needs.
Fintech is slowly creeping into every facet of the financial landscape. The banking industry and the finance sector are keen to embrace the new concepts and new technologies that are being launched every day.
0 Comments