Fintech is by far one of the most fascinating and explosive markets of the past decade, as growth and interest have increased substantially. For the most part, fintech is categorized by the simple definition that it is the marriage of finance and technology, usually involving distribution of typical financial services, such as bank transactions. Although this is a large part of fintech, this isn’t necessarily all the industry is composed of, and a more thorough look could shed light on a multitude of fintech business ventures that could completely revolutionize the space. On top of the well-known definition, fintech companies are good at complimenting existing financial services and enhancing their user experiences, rather than hindering them. This is especially helpful as, especially with the global pandemic, there is an increasing demand for contactless financial services that can be easily accessed on users’ phones and/or computers.
The most common implications for fintech are contactless payments, whether that’s using PayPal, Venmo, or Cash App, and using your phone’s digital wallet and scanning your phone at compatible readers while in a physical store. However, one of the lesser discussed segments of fintech is Buy Now Pay Later, or BNPL, which allows users to make purchases now and then pay them off in small quantities over time, whether they choose weekly, bi-weekly, monthly, or longer payments depending on what the service permits. Some BNPL apps have interest, similar to credit cards, but most have interest free periods to take advantage of. Another underrated feature of fintech is not just having access to debit and credit cards through your digital wallet, but now also access to your cryptocurrencies. As digital payments become more mainstream and more vendors start accepting them alongside traditional methods, the ability to store cryptos right alongside typical cash and bank account cards will be extremely convenient.
One of the final underrated fintech features of the past few years are using cloud enterprise solutions, which allow some financial firms to reduce costs by using automation techniques. Cloud enterprise solutions also allows for easy client onboarding as well as more efficient risk mitigation. Perhaps the most encouraging news for the fintech industry in the years to come is how secure and globally interconnected the industry is shaping up to be. While competition is fierce over becoming the world’s fintech and cryptocurrency hub, all nations seem to understand that security and fair but strict regulations offer the best opportunities for people all over the world to connect and network.