The Financial Technology (FinTech) industry has been around for some time and it’s rapidly becoming an asset in the online business era.
As a matter of fact, business in the digital era is nothing like it used to be and we require new tools and resources to sustain its growth.
FINTECH IS BORN
The modern financial technology is not new, we can trace back its origins to the 1950’s with the invention of credit cards.
The next evolutionary step was the automation of stock trading, and not long after, computers were incorporated in the banking system.
In the early 1990’s the internet changed the business model forever, laying the foundation of eCommerce.
At present, we can find different categories in this evolving industry:
- Tech in Fintech & Strategy: it engulfs disruptive technologies like blockchain, AI, semantic web and IoT.
- Wealth Management & Capital Markets: long-term and short-term trading and investments.
- Small Business Finance: including debt, equity, payments, and foreign exchange.
- Insurance (still in its initial stages of development).
- Consumer Banking & Finance: services targeted to both wealthy and developing countries.
DEVELOPMENT AND GROWTH
As it’s easy to get lost in the glossary of terms and definitions nowadays, let’s try to simplify:
Pros and cons of the fintech industry:
|PROS||Agile||Innovative||Fast||Focus on Customers|
|CONS||Volatile||Poor strategy||High Speculation||Lack of Transparency|
In fact, not everything is sunny in the fintech land, as Lending Club scandal highlighted the ugly side of the business.
HOT TRENDS AND COMPANIES IN 2017
PayPal is still going strong, but there are other options to consider like ApplePay, Google Wallet and Stripe.
Some of the hottest trends for 2017:
- Insurance and short-term loans will come into play.
- Artificial Intelligence and machine learning will mould the processes.
- Data and personalization will have a big role.
- Developing countries are ready to jump in the fintech waggon.
- Traditional and innovative companies will cooperate.
- The customer experience and satisfaction is essential.
- Fintech and Social Media integration is profitable.
- Economic empowerment is possible overall.
- RegTech (regulatory technology) is on the rise.
For a full review check this source.
Moreover, innovation is a trademark in this sector, just judge by yourself.