Silicon Valley has been the center of the tech world, but this isn’t necessarily the case when taking a look at the fintech industry. There are companies all over the world excelling rapidly within this field. This might be because it is the most applicable sect of the tech industry. Fintech opens up doors to nearly any company taking advantage of its developments.
According to a well-done webinar by Morningstar Inc., “FinTech companies are businesses that leverage new technology to create new and better financial services for both consumers and businesses. It includes companies of all kinds that may operate in personal financial management, insurance, payment, asset management, etc.” This should paint you an accurate picture of the possibilities that this industry holds for the future of companies around the world.
Fintech means a lot to the start-ups using the strategies and the traditional banks that are set in old strategies. Traditional banking will continue to become more and more outdated if these banks fail to adapt some of the innovations that are being presented in the fintech field. This is especially true when we consider the fact that Millennials are getting older and looking to places to invest and save their money. Banks that offer more electronic ease and other features are highly likely to take the cake when looking at new clients.
This means competition will remain fierce in the financial industry, thanks to fintech and all its advancements. Large banks like Capital One are at the forefront of fintech and taking advantage of the developments it will bring. Banks that keep their head above water will be the ones remaining relevant through the changes that fintech will bring to the industry.
Security is a proponent of fintech that most people are excited about in the industry. There is room for so many improvements regarding information security and the safety of important data. There are companies focusing on this aspect of fintech that will drastically improve our ability to feel safe banking online.
The wariness towards trusting money that you are storing online is one aspect of fintech that will constantly need improvement due to the constantly changing online tools and features. This is a great field to go into because there will always be jobs making online banking safer. As technology progresses, so do the hackers that can find work arounds. This is widely known, which makes consumers wary. This creates a steady need for financial security developments and precautions. Examples of fintech products that make consumers feel at ease are tools like fake credit cards with numbers connected to your real credit card. This makes it so credit card numbers can’t be stolen. It’s genius—really. We just need to see more of this moving forward to create a theft-free and hack-free financial space online.
Companies like Experian have released tools that can help companies track consumer behavior. Two of these tools are Ascend and PowerCurve. PowerCurve predicts whether someone will be receptive to a product and Ascend uses AI to track consumer behavior. Tools like these paired with impeccable fintech strategy will really make a company stand out from the competitors. Experian is also huge in fintech because it can protect from identity theft. They also allow lenders to run credit-scoring so they can assess applications for car finance etc. Companies like this are allowing other companies to meet tech and financial goals through their innovation.
We will definitely see an increase in companies that can provide tools like Experian does. These small, but complicated technological advancements have the power to revolutionize how a company sells and completes transactions. Small tools like the credit checking tool allow for companies to focus on their message, branding etc. while another company provides their advancement in financial technology.
Another tool that more companies will need is the help of fintech consultants and experts. Since fintech is fairly innovative and fresh, the need for consultants to lead companies in the right direction is apparent. This field is opening up a whole new need in the job field as well.
Moving forward, we can expect a decrease in the amount of banks sticking only to traditional banking. There also will be further developments in security, which will make this industry take off. Once the security aspects are perfected, we will see a huge increase in the success of fintech. The field is already changing the way humans invest, spend and save money.
One thing that can be said for sure about the future of fintech is that big data, A.I. and machine learning will all have a hand in its success. Take for example Bitcoin and Cryptocurrencies. They will definitely become the future of banking as they provide more accessibility to millions of people who have never had their own bank account before. Bitcoin is also used as an asset, investment, and trading. It’s often considered to be just like gold. There’s been large investments in developing new technology for this sector like trading algorithms and automatic trading robots such as the Bitcoin Trader, which analyse the trends on the market and place trades automatically for their users. This industry is taking off and encompassing nearly any business that complete financial transactions, manages money, invests money etc. Fintech won’t be slowing down in the near future, that is certain