The future of fintech is an exciting one. With the ever-growing popularity of mobile and online banking, there has never been a better time to be in the financial services industry. Here are some of the most important emerging trends you need to know about today in order to stay ahead of the curve.
Fintech is exploding
Fintech is exploding. This has been evidenced by the number of startups in this space as well as the amount of venture capital flowing into them. There are a few reasons for this. First, traditional financial services are not keeping up with the demands of modern consumers. They are slow to change and offer limited options. Fintech firms can offer more flexible, customized solutions that appeal to today’s consumers. Second, technological advances have made it easier for fintech firms to create and offer their products. For example, artificial intelligence and blockchain technology are helping these companies automate various processes and reduce costs.
Moreover, regulation is starting to catch up with the fintech industry. This means that authorities are now taking a closer look at how these firms operate and make sure they’re complying with applicable laws and regulations. This is good news for fintechs as it will help them remain compliant and avoid potential punishments such as fines or bans from doing business in certain jurisdictions.
The future of fintech is in blockchain
According to a study by Greenwich Associates, the global fintech market is expected to grow from $127 billion in 2016 to $268 billion by 2020. While initial investment in the sector was driven by traditional banking institutions looking to improve their customer experience and compete with emerging digital challengers such as Square and Uber, this has begun to change.
Now, blockchain technology is being seen as the key to unlocking the true potential of fintech. It offers a secure, transparent and immutable platform for handling transactions and can be used to create new applications such as smart contracts and tokenization. This has led some banks, including JPMorgan Chase, HSBC and Santander, to invest heavily in blockchain startups. However, not all fintech players are convinced that blockchain is the key to success. Some argue that it is too slow and costly to use in comparison with established technologies such as Visa or Mastercard. Nevertheless, its popularity continues to grow and there are now over 1,200 companies working on various projects using blockchain technology. So whatever the future of fintech may be, it seems clear that blockchain will play an important role in it.