The Future Of Fintech

By providing new ways to cost-effectively improve the general customer experience, Fintech has proven itself to be one of the biggest disruptors in the financial industry. Multiple solutions and approaches are already in the market, increasingly necessitating financial institutions to integrate Fintech into the overall organizational plans, vision and business objectives.

Here are some of the trends set to bring beneficial returns to entrepreneurs in the Fintech landscape.

Near Field Communication (NFC) technology

Although currently in its infancy, near field communication is already revolutionizing how we make payments. In countries such as South Korea and China, the technology is used to enable contactless payments with its future focused on offering implants. Although implants are a few or so years away, wearable devices have taken center stage with the inbuilt technology. Currently, Fintech wearables hold the biggest promise of growth especially this year.

Smartphone makers have also adapted the technology to keep up with the growing need for a cashless economy.

New regulations

The financial industry is a high profile section of the economy. The growth of Fintech is has attracted regulators who continuously struggle to set up regulation for both fintech software and hardware applications. Increased regulation is actually good for the industry as it further legitimizes the trade thereby increasing customer confidence. It will also contribute to building a stronger and more secure financial base for various Fintech products while also increasing innovation and uptake of the products.

Cryptocurrency trading

The industry has seen rapid growth as entrepreneurs and CEOs see its potential to fundamentally change how stock markets are run in addition to making a lot of rich people in the process. Cryptocurrencies have in the recent past seen a big interest. Multiple companies are now raising capital by launching initial coin offerings for their cryptocurrencies. However, this has also bred fast money makers who launch spurious cryptocurrencies in an effort to cash in on the craze. That said, investors and entrepreneurs should keep an eye on the speculative industry which has seen a more than 80% growth in the last 18 months alone.

Blockchain applications

One cannot mention cryptocurrencies without the underlying technology commonly referred to as Blockchain. The immutable digitized ledger has led to the creation of much wider applications in fields such as healthcare, security, and finance. The fact that no single entity holds the key to the ledger means that the technology could potentially change how financial transactions are done. For example, chain of ownership and history can easily be recorded and the permanent record used by banks to offer loans and mortgages. Fintech investors should keep their ear down for the multiple blockchain applications available.

The entry of big companies

Financial tech products have for a long time been a preserve of small startups as Conglomerates and big institutions slowly to adopt new technologies. This is largely because startups have little bureaucracy which enables them to innovate at a greater pace. That seems to now come to a close as big companies see the massive potential held by new innovations. Big firms are now increasingly competing in both investment and the building of Fintech tools.

However, the change is positive as innovators can now fast-track their products with the increased financial muscles big companies bring. The competition also seeds innovation by forcing all companies to be at their very best in what they do.

In conclusion, financial technology is here to stay. To be part of the industry, investors and entrepreneurs have to focus on getting the very best investment products in the ever changing technological space.