Fintech as a trend
Fintech is a fast-growing sector at the crossroads of financial services and, indeed, technology. This is the most important engine of technological advancement, and it grows in strength every year.
How fast is fintech developing?
Very quickly, and this can be judged by the growth in investment. For example, the cost of fintech transactions increased by 60% in the first half of 2019. Investment in the fintech sector in the UK increased by 50% over the same timeframe, mirroring the situation in Germany. Cash injections into this category quadrupled in Sweden and Singapore at the same time.
The key directions and outcomes of financial technology growth.
Fintech has been most involved in the consumer services, banking, remittances, and payments sectors of the economy. Fintech’s penetration has had an effect on banking, wealth management, and capital management.
Payments and settlements
A simple example: just a few years ago, Internet entrepreneurs had to enter into agreements with banks to service the payments of their partners’ customers. All is much easier now; there are a plethora of financial services that allow you to accept and send payments in a variety of currencies and across a wide range of platforms.
Fintech also allows non-financial companies to increase their client base. We’re talking about food delivery, movie and theatre ticket purchases, parking lot payments, hotel registration, and much more. Without the use of a mobile terminal, funds are withdrawn directly from the card.
So now you can pay for products or services not only with a credit card but even with a tablet or even a smartwatch – just carry the computer to the wireless terminal, and the payment is made instantly.
Banking services and maintenance
Banks are widening their service offerings, developing non-physical service platforms, and developing innovative ways to communicate with clients by using digital technology. This can include things like opening an account without the client having to go to a bank and simplifying a variety of operations.
Banks are increasingly shifting their consumer interactions away from physical platforms and toward digital and mobile services. Third-party software is being developed to allow third-party solutions to integrate with banking platforms.
Just a few years ago, the same banks were the primary source of credit. There are a lot of options now. In terms of demand, banking products continue to lead the industry, but startups are catching up.
Sart-ups and insurance companies have both the latest technological solutions with classic insurance services.
Online insurance is growing at a similar rate to online banking. Furthermore, firms that provide online insurance services are rapidly expanding their business coverage.
Cybersecurity and user identification
Smaller businesses are not often able to deploy their own cybersecurity systems to the same degree as large banks. As a result, the demand for information security technology is rapidly evolving, with ready-to-use applications that can be integrated into your existing infrastructure.
Technologies such as predictive analytics, Big Data, and machine learning are being implemented. The typical information security professional is unable to examine all of his organization’s transactions, but the computer is capable of doing so.