Fintech Industry…What makes it great?

June 14, 2021
Anjali Prasad

 

Ever since information technology started gaining traction in the market, the merger of financial information and technology has been rapid. As communication methods improved, so did the speed at which financial information was able to be transferred, processed beginning from the Fedwire and transatlantic cable in 1866. In the early years of Fintech, financial institutions were one of the first to adopt mainframe computers, digitized communications, as well as e-commerce business models.

Unstoppable Incline of Trends

The Global Fintech market value was around USD 5504.13 Billion in 2019 with a compounded annual growth rate of 25%. Keys to the growth in the fintech sector are software and tech based solutions to traditional lending and bank solutions. Market segmentation across artificial intelligence, blockchain, consumer services, application, and analysis has paved the way for global players such as Robinhood, Paypal, Apple and Google pay, Afterpay, Avant, etc. 

Penetration of fintech through online application program interfaces (API’s), distributed Ledger technology, reshaping the workforce for banking industries, robot customer service chat boxes, money transferring and payments, Internet of Things, is a highly fragmented market with thousands of players. 

Refinement of  markets in Asia Pacific landscapes. 

The financial technology industry penetration within the Asia Pacific, China, and India region is at a steady incline as fintech services deeply penetrate the digital banking space. 3 to 5 customers (65%) have adopted some form of digital banking or who are willing to make the switch to digital banking in the next 5 years. The pandemic has caused many unprecedented changes to the wya banking will be  viewed in the  future. Around 70%  of customers view the traditional banking process as tedious and would prefer a much more leisure way of financial processing and acquisition. Within the next 5 years, around 44-50% of banks in the Asia pacific landscapes would have adopted automated machine learning processes for their lending services. Focus don creating a web-based application process, API involvement while leveraging machine learning and automation at every level of the process. This would entirely remove third party involvement in the process, increasing efficiency, cutting down the time, as well as speeding up approval processes.  Projections of AI and automation services to create wealth management solutions and data driven decisions for financial planning will deepen another avenue of penetration for financial technology services.

Speeding up… Too fast?

With digital capabilities beyond the speed and processing ability of humans, fintech’s growth in the services and banking industry has proved to several industries the deep integration of technology in the modern era. The age of digital Darwinism slowly dawns upon the human race. What happens when technology and society is changing too fast for humans? The need for humans proportional decreases and the ability of technology to perform proportionally increases. The greatness of technology and finance combining could lead ….to Ray Kurtzweil’s predictions of an insurmountable disastrous  transformation of the human workforce by 2045.

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