How Fintech is Changing the Financial Services Landscape

How Fintech is Changing the Financial Services Landscape

Technology is changing the way we do things in every aspect of our lives. Innovative ideas and new developments are coming onto the market every day in a bid to make tasks easier and more enjoyable. Many industries are seeing new systems and software that is changing the way they work and how efficient they can become. One industry seeing some significant and influential changes is the finance sector. Fintech, or Financial Technology, is making waves across the globe and is bringing emerging technologies into consumers hands. Historically, Fintech has been associated with backend functions of financial institutions, but with recent innovations, many services are now available to personal and commercial users as standard. Other revolutions in this industry have seen the development of retail banking, investment services and virtual currencies such as Bitcoin emerge onto the market with powerful influence.

Take a look at some of the ways technology is helping create tools to manage finances.

Mobile technology

Everyone uses cell phones on a regular basis, so what better way to get financial products in front of this mass audience than by exploiting the necessity to stay up to date. Mobile technology has made everything from socializing to managing your money accessible by the touch of your screen. Apps are being created all the time to meet the needs of demanding consumer tastes, and they are making it easier to get information and services that we need the most. These tools are also used for everything from making personal budgets, creating savings goals and investing money in the market and can be tailored to your individual requirements with ease.

Mobile apps represent a considerable change in the way people do everyday transactions from regular banking through to borrowing money to start a business. There are also huge advantages to using this type of technology to make your life easier and these include:

Fast and efficient money management – Many applications are faster than their desktop counterparts and have been designed for ease of use and quick transactions. You don’t want to spend hours trawling pages to find the service you want, so apps provide precise and popular functions, so you can complete transactions quickly.

Personalized content – Although people are slightly hesitant to let companies access their individual preferences, more often than not, it is a great way to tailor the content you see and what services you need. Fintech is providing the opportunity to gain user interest and personalize based on experiences, which give consumers the ability to pick and choose, based on several factors such as location, interests and online behaviors.

Interactive engagement – In today’s changing consumer climate, having a brand persona has never been so important. This identity helps people to feel comfortable when buying from companies and offers them a chance to feedback and interact on a personal level. Mobile technology is one of the driving forces behind social interaction, and since its inception on general social media platforms, Fintech is making progress to ensure applications are at the forefront of customer engagement for all companies.

Online banking and lending

As so many different transactions are completed online in the current climate, it’s no surprise that there is a huge amount of banking transactions that are completed every day. These aren’t your typical balance checking transactions; there is everything from borrowing money and saving to investment options and business transactions taking place. The Internet has also made it possible for non-traditional financial institutions to get on-board and offer services to consumers with fewer restrictions and barriers to access. Lending money is one of the areas that is regularly discussed and for both businesses and personal customers; it has never been easier to obtain funds for a range of things. This site gives you the opportunity to get money quickly for those unexpected costs while others include peer-to-peer lending, that enables consumers to bypass regular lending streams to realize your goals.

There is also a huge range of online services that can help you manage budgets, invest in the market and create savings goals. The benefits that consumers see from this type of technological innovation is helping to increase access to services, so you don’t have to visit a brick and mortar establishment to get access to a wide range of services that fit individual requirements at different stages of life.

The Increasing Fintech Landscape

Fintech covers a broad scope of financial areas and as technology evolves there will be further developments in this innovative sector. Many industries are regularly using it to streamline processes and make business more productive, and there are now several sectors of people using it on a daily basis. From business practices to consumer habits, each industry is helping to create a diverse landscape for this growing technology. Some of the most well-known uses of Fintech currently are:

Cryptocurrency – Otherwise known as digital money, this relatively new concept is making waves across the world and is set to be a big player in the financial sector in the next few years.

Robo-advisors – This technology uses algorithms to automate advice on investments and offers lower costs and increased accessibility into the marketplace.

Insurtech – This is technology that helps to streamline the insurance industry and make it more efficient.

Cybersecurity – Due to the increase in the use of the Internet and mobile applications, fighting cybercrime is big business, so the introduction of dedicated cybersecurity is helping to tackle this problem.

The financial services landscape is ever evolving and is digging deeper into the habits and behaviors of businesses and consumers who are using the multitude of services on offer. This insight will help grow this fast-paced and innovative industry and will begin to see developments in other areas such as virtual reality and machine learning to predict and analyze data for maximum effect. Fintech is changing the way people carry out everyday transactions, and this is set to become one of the most significant changes to the industry over the next few years.