April 24th, 2019
How The Fintech Industry Is Shaping Up in 2019?
Fintech is changing the financial industry and bringing about variations that were unimaginable a few years back. It has eased things for the customers as well as the consumers. In a capitalist society it is safe to say that Financial Technology is providing profit to its customers in the form of ease.
Maybe a few years from now, if the pace of advancement remains the same or grows, you will not have to bother heading over to the bank for any sort of transaction. With fintech you can make transactions online without having to drive all the way to an ATM. You can use your mobile as a purse and purchase things on the internet, one touch and voila! However, as the saying goes , all that glitters is not gold, this may just be the tip of the iceberg Titanic underestimated as well and crashed so let’s spin that crystal ball of ours and look into Financial Technology further and see what its future is.
As we progress we see how the world is now driven by data, machine learning or an access list.
How can these be put to our advantage? Well, there might be financial advisors on the access list which would ensure the safety of consumer’s investments (financial) and would eliminate the need of any sort of human interaction.
Machine learning may perhaps come in handy for trade in the stock market and change its outlook altogether. The crux of the narrative at present is that Fintech may finally give consumers the security they long searched for instead of being exploited in the capitalist market.
Fintech as a Source of Benefit
- Expediency: as discussed earlier, fintech allows the consumer to sit at home and shop with just one click instead of having to leave the comfort of their house and use physical money. It ensures one’s safety of money as well as comfort.
- More Options and Variety: It does not bind you geographically to particular vicinity but provides you with more variety and choices to pick from. This on one hand enhances competition in the market and on the other hand decreases the monopoly of brands giving you the best products consequently.
- Personalization: Fintech helps various businesses store data of their customers therefore, those people can be targeted later by deals that suit them best or interest them.
Factors Aiding to Shape the Landscape of Fintech
Different Fintech companies are trying to stand dominant in the race of financial technology and are trying to change the way borrowing or lending money, making payments or transactions, transferring money inter or intra border. The demand for fintech is more in the market undoubtedly which is why more is being invested into it so it seems to have a brighter future in a few years or so.
According to a report on fintech funding given by KPMG, it rose to as high as 2.9 billion dollars in the third quarter of the year 2016 which is huge in such a small span. How will this be taken further? The entrepreneurs and business holders will have to look into the customers approach towards it and innovate in order to revolutionize.
- Fintech is using the power of blockchains or artificial intelligence allowing different systems to collaborate which was quite the chore previously. They are altering traditional ways to stay in the game. They are producing ulterior solutions from paying, lending to robot advisor services and data management. This ability to bridge the gap between the service providers and consumers requirement is one of the many reasons financial technology tends to flourish.
- Companies or businesses focusing more on APIs (application programming interfaces) and their implementation are simplifying things for the customer and making their experience more convenient. APIs that can serve as a bridge between those who provide capital and those who have access to the customer can be said to be pretty successful. E-g Sage the UK-based business accounting software provider has created collaboration points to include services like paying methods, benefits for employees, management of the workforce and financing of business.
- A customer’s experience is vital in Fintech so technology has been breaking norms and changed the traditional consumers’ way of doing things due to which a lot of systems trying to keep their legacy intact have failed to advance with time. The more targeted the product will be keeping customer’s interest in-check the more the customer will be drawn in.
- As fintechs continue to explore and manipulate the use of blockchain, mobile payments, robotic intelligence and targeted products to their advantage they also try to improvise and include investment and merger and acquisition activity into the race.
Having said that it does not eliminate the factor that fintech will not have any thresholds to cross. It will have a lot of obstacles to overcome because at this point the traditional institutions have not been entirely eliminated and the customer is not fully aware or educated on using complex technology. Other than that the need of staying within the globe of regulations is important as well. Therefore, as much as fintech sounds progressive, it will have its regressions too. In conclusion to this entire debate it is safe to say that in the coming years we will see how fintech emerges out as and it does seem all bright on the other side of the rainbow but let’s wait it out and see.
The world is changing and evolving as we speak and at the core of this entire evolution is none other than science itself in the form of technology. Technology has done wonders for the human race and continues to change the entire way of existence for humans. The use of technology is embedded in our lives and is shaping our lifestyles. We are now so prone to the application of technology in personalizing our life that one fails to imagine living without it. Fintech is all one needs to restructure and streamline their financial necessities and requirements.