“Financial institutions must be able to deliver an easy to navigate, a seamless digital platform that goes far beyond a miniaturized online banking offering” - Jim Marous.
We have implemented practical application of science to commerce or industry. But at the time of volatile household income and widely circulated economic insecurity, innovation in financial technology does reckon with the emotional strength and little stress buster to the financially stressed countries, especially the developing countries.
According to KPMG and CB insights, FinTechhas successfully attracted a lot of attention, appreciation goes in part of the enormous sum that has been imbibed from investors, approximately $100 billion in the last three years.
Let’s focus on helping users, the past few years have seen a proliferation of apps designed in order to help the families looking to allocate 401(k) retirement accounts according to the Wall Street Journal, where paycheck to paycheck is emphasized by the larger number of people.
With the ultimate essence to imagine a world without cashless transactions, FinTech companies have successfully left all the former giants of finance behind by rendering the hassle free financial services that can be easily accessed through mobile phones. It has alleviated commuting to the bank, searching for a slot on the parking lot followed by comprehensive paperwork. With the growing popularity, FinTech industries have relished the figure of $17.4 billion investment in 2016.
Despite of all these amazing people, other people are still perplexed with the exact terminology of FinTech industries.
What is FinTech
FinTech stands for Financial Technology as far as the broadest definition is concerned. It is technology used and put into service in the financial service, fundamentally used by the financial institutions for the backend of their businesses. Getting into detail, it can be defined as the backend process of setting up servers as well as software applications even for the frontend, concerning over traditional banking institutions.
Although specific definitions tend to vary from source to source, more of the people following the fundamental idea of using this technology is to make the traditional financial services sector more disruptive including money transfers, mobile payments, loans, fundraising as well as asset management.
But it would definitely be a misapprehension to consider FinTech a simply buzzword. A report by Accenture has identified that investment in FinTech across the globe has increased dramatically from $930 million in 2008 to the figure $12 billion by early 2015. Hence it will continue to proliferate since it touches not the financial services but encompassing every businesses that are known to be dealt by the financial services.
Who is FinTech?
In order to define the spontaneous understanding of an idea, “who” and “what” is quite significant beyond delineating the dictionary entry of a word. FinTech may have originally passed on to describe the IT department or server room considering larger banking industries although deficient a few years ago, but today’s established players or emerging startups have entirely taken over the ownership of the term which has made simplified by the open source and cloud computing. FinTech firms have enclosed a series of sub-industries, considered as a part of the finance sector.
Here are the list of industries that have witnessed the transformations apart from mobile payments, asset management, investment over business and personal lending and fundraising.
How FinTech is changing the business ecosystem?
FinTech and giants have covered a wide range of technologies, services as well as audiences have changed constantly evolving from the face of financial technology where the common threads will increasing speed as well as accessibility , in case you are identifying the commonality across the spectrum. With faster utilisation, ubiquitous internet connections, big data computing as well as mobile connectivity, it has enabled the business to buy into complicated, feature enriched financial software suites as well as a well management of the services. Although this is not a matter of astonishment, it would have cost millions of dollars for programs license, establishment for equipments as well as trained technicians. What provided unparalleled business insights are the smarter displays of information catered with real-time updates as well as penetration of big data.
Hence it works the way in case you want to commence with a business, you would rather look for a traditional investor or a local bank. It searches for big credit providers in case company is accepting credit cards. With the enhanced software designs as well as user experience, ubiquitous demand for smartphones and quick internet bandwidth have rendered the real-time access not only to the financial institutions but transactions at a level that was never observed before.
FinTech industries in 2017
According to TechBullion, 98% of millennials own smartphones and the ultimate appreciation goes to the mobile app development which is evident from 25-34 age bracket. Since the social media has passed on to the mobile prioritising mobile media and live streaming, all this is revolutionising the concept of FinTech industries like anything in 2017.
Enhanced mobile transactions
P2P payment apps have invaded the mobile world, it is expected that in 2017, approximately a quarter of the US adult smartphone users will be utilising P2P payment app once in a month which is further reckoned by the Pew Research Centre where approximately 72% of US adults will be owning a smartphone, and this fact will further intensify the demand for mobile transactions. This will enable the retailers as well as payment providers to render smoother transactions for purchases irrespective to the types as well as sizes, hence innumerable solutions will continue to gain traction and will impact day-to-day lives in a significant manner.
This proves to be good news for FinTech because more and more opportunities will arrive with the combination of improved technology with the upwardly mobile world.
Prioritising Artificial Intelligence
Followed by mobile app development, various FinTech companies have agreed to the fact that 2017 will circulate around Artificial Intelligence. With the evolution of capabilities, this will rein to make a better decision followed by improved solutions. They will dissect big data by making use of predictive analytics as well as make analysis of larger volumes of consumer information.
But what will lead the integration as well as partnership between FinTech startups and established banks?
Then this will be APIs, which will not only enhance user experience but follow with spontaneous interfaces, and robot advice with customer interactions. Here architectural requirements will act as a catalyst to further boost up the essence of Artificial Intelligence on FinTech industries.
Invasion of the Cloud
Coud computing has been quite apparent, and even vendors will cease to have the market to the more cloud agile vendors. This is reckoned by the figure of approximately 92% of utilising cloud technology in a form or the other.
This will prove to be an opportunity for agile FinTech innovators, for instance industry giants like SAP and Oracle that are still continuing to migrate to cloud software delivery. Hence in the meantime, they will be able to fulfil the demands of the consumers in case they are entirely migrated which would lead to seize a considerable proportion of giant’s market share by nimble startups.
Emphasizing biometric security
Like mobile app development companies are concerned with security, analogously it comes with the contactless transactions, 2017 will prove to be an improvisation over security measures in order to prevent fraud. With the seismic shift in favour of biometrics, consumer credential plays a quite significant role. Since fingerprints are also getting vulnerable, transactions will involve a multi-step security apart from fingerprint recognition to face recognition or maybe iris scan.
In the next few months, we will be evidencing critical changes in mobile apps that will be using biometric information in order to accomplish the payment transactions.
Punctuating marketing trends by visual approach
Apart from trust and security, some of the top concerns, before getting started to download with the FinTech app or signing up the web solution, users look for credibility as well as awareness. In 2017, the following are expected as far as visual approach is concerned in order to punctuate marketing trends.
Despite all the cash as well as excitement, FinTech companies have managed to grab mere 2% of the market share as per the data from Economist Intelligence Unit. FinTech is day by day moving in favour of frictionless payment.
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