The growing influence of fintech
Financial technology is changing almost everything. That’s a bold claim, of course, but it’s a claim we really believe at PayNode. Let’s take a look at just some of the areas in which fintech is improving our personal and professional lives….
Retail banking: for most people today, banks are online service providers more than physical buildings. Quite right too – traditional banking had to change. When you could sit at home and quickly pay an online retailer large sums of money at your computer, it soon became a real pain to spend an hour of your life visiting a bank to move a small amount of money between accounts. Retail banks are being forced to embrace the fintech revolution or risk losing customers. In fact, the difference between a bank and a fintech provider is getting smaller every day. And if banks can’t build those customer-friendly fintech services in-house, they can always go and buy a fintech partner. The positive disruptive impact of fintech on banking is explored further in this article: https://www.financierworldwide.com/the-disruptive-influence-of-fintech/#.WPYLc864neQ.
Payments: by 2020, many people will be leaving traditional wallets and purses at home and using mobile payment systems for almost everything they buy. Merchants and customers are feeling increasingly comfortable making transactions through smartphones, apps, scanners and near-field communication (NFC)-enabled terminals. And as payment processes change, it’s no surprise we are also seeing big changes to actual…
Currency: why struggle to integrate traditional currency transactions into a digital financial world? Why not just launch digital money? Digital currency, built on ‘blockchain’ technology, seems inevitable now, removing so much of the bureaucracy people hate in financial services. But what is a blockchain? In short, a blockchain is a distributed database of computers that together maintain records and manage transactions. This network approves ‘blocks’, or transactions, which are then added to the ‘chain’ of computer code. Unlike traditional financial services business models, blockchain technology is not managed by a central authority such as a bank. Enthusiasts believe blockchain technology could be as revolutionary as e-mail. The applications could extend beyond finance into areas such as the holding and transferring of music. You can find more analysis of how blockchain technology is disrupting financial services here: http://knowledge.wharton.upenn.edu/article/blockchain-technology-will-disrupt-financial-services-firms.
Property: the regulations and paperwork involved in the property market can often feel overwhelming, particularly when dealing with all the fees and taxes involved. Fintech can make the buying and selling of property so much simpler, quicker and, ultimately, cheaper.
Insurance: even more than property, the next big fintech market could well be the insurance industry. The opportunities to simplify insurance transactions through innovative fintech are huge.
You can learn about even more sectors in which fintech is expanding in this article: https://www.finleap.com/blog/sectors-of-the-top-50-fintechs.
So, can anything hold back the spread of financial technology? At least two challenges still need to be addressed – acceptance and advertising.
The public always needs time to learn to trust new technologies. But, in the end, the widespread acceptance and adoption of any good fintech service is almost inevitable – just look at the growth of internet banking.
In terms of advertising, the challenges ahead are actually very exciting for the fintech industry. In everyday life, for example, many people don’t yet know about digital money. But as public awareness of fintech grows, through more widespread advertising, so does fintech itself. Financial companies are certainly capable of producing powerful mainstream marketing, as proved by the TV advertising of the retail banks. As fintech masters marketing, the industry will surge into almost every part of public and corporate life. We can’t wait.
By Magnus Henriksson, global business director, PayNode.