Fintech simply refers to technology developed around financial services, and over the past few years the fintech industry has been booming. From crypto payment gateways, to new ways for businesses to process payroll, fintech is reaching every corner of our personal and professional lives. Here is a handy list from a leading Fintech research company, that compares many of the top fintech companies.
In the investment world, online trading platforms are utilizing fintech services to help traders keep up with the trading pace. It also allows investors to better assess market trends and more easily improve their trading knowledge. A recent eToro review talks more about how cutting-edge companies like eToro are rapidly changing the marketplace.
Below we’ll talk more about some other areas where fintech is making headway in the marketplace.
- Retail trading
The retail trading industry has been around for a long time, but it is rapidly changing. Trading has transformed from stacks of paperwork and manual processes, to advance algorithms and automated technology. New platforms like Robinhood are turning the industry on its head and influencing an entire generation of new traders. These platforms have changed trading tactics and adopted principles such as gamification to maintain and increase market share.
These new age trading platforms have helped usher in new traders through aggressive acquisition campaigns, as well as by eliminating trading fees. They are empowering and encouraging more people than ever to try out trading.
- Personal finance
Fintech has also made deep inroads into the way we conduct our personal finances. Apps such as Mint, help people take control over their finances and monitor spending, while others such as Vemno have enabled people to basically do away with the requirement to carry cash. These personal finance fintech companies are making life easier, and empowering people to better control their finances.
Why should financial institutions embrace Fintech?
Improved user experience
One of the best parts to the emergence of fintech is the ability for companies to really focus in on user experience. Using technology, financial companies can customize their product offerings to make them relevant to nearly all people. In addition, they can rapidly test new features and launch updates based on feedback from their users. This results in an overall better product and user experience.
Better decision making
In the past banks and other financial firms heavily relied on humans to make many decisions. Since humans are not perfect, this resulted in errors of judgement, discrimination, and so on. With fintech, banks and other lenders are able to make decisions using data and algorithms. This helps eliminate all the human errors that were relevant in the past.
Easier and cheaper to scale
Today fintech companies are able to scale much quicker and cost effectively than in the past. Since business can be conducted online in many cases, the old model of having branches all over the country to service customers is no longer a necessity. That means a financial company can gain nationwide coverage in a fraction of the time it used to take.
Fintech companies are exploding right now, and it is expected to only grow further in the coming years. Investors who have been onboard for a while now have reaped the rewards, but it’s not too late to jump on if you’ve missed the revolution to this point – there will surely be many more fintech unicorns arising in the coming years.