As our society continues to evolve, so does the way we manage finances. No longer are the days of wire transfers, all money can be sent within seconds due to fintech software. With fintech software, we find easier solutions to financial problems that plagued us in the past.
And this guide will give you insights on how fintech has evolved. As it continues to grow, we’ll start to see more development teams operating with banks, credit unions, and other financial institutions. Scroll down to find out how fintech software can bring a positive change to your business.
What is Fintech?
Previously, fintech software used to be back-end technology used to run financial organizations but has grown to a term used to describe disruptive technologies.
Fintech investment increased from $1.89 billion (2010) to $27 billion (2017). The growth of fintech is expected to continue, with African and Asia/Pacific markets making a large share of market growth.
Fintech’s growth is due to the internet and the rise of mobile technology. Even highly cautious, highly regulated industries (i.e. insurance) have embraced innovative opportunities for more effectiveness offered by fintech solutions.
Financial institutions used to keep fintech companies at length, seeing them as potential competitors and industry disruptors. Self-interest and wisdom have surpassed user’s cautions. It seems that financial companies have started to invest in fintech software to keep their organizations relevant.
This newfound promotion and acceptance of fintech innovation, proven by the large investment made by the fintech industry, will increase the implementation and development of fintech within the financial industry.
Benefits of Fintech
Fintech applications offer B2B spaces a multitude of potential benefits. While some applications are customer specific, or directly benefit customers, the majority of solutions within this space are B2B focused.
Businesses can benefit from more automated technology. In the technology industry, banks can save billions of dollars a year implementing reg tech solutions.
In addition to cutting down the number of employees by creating automated tasks, the insights created by fintech applications can improve operating efficiency and streamline business operations.
One of the biggest benefits of fintech, specifically in regards to AI-powered reg tech and blockchain based fintech for the finance industry, is the creation of transparency. Fintech projects can identify fraudulent activity faster than the human mind.
The transparency that’s introduced by these projects will start the know your customer (KYC) and anti-money laundering (AML) portions of the finance industry.
What is the Future For Fintech?
The following years are expected to be bright for the fintech industry. We expect to see advancements in analytics, data handling, and artificial intelligence. This will result in more innovation within this sector.
An increase in financial data APIs and open banking practices will lead to more fintech application development. Blockchain technology has the potential to catalyze a revolution in the finance, banking, and insurance industries and beyond.
Developments will still be monitored in the fintech field while they occur. In the meantime, you need to be on the lookout for upcoming advances in fintech technology and applications.