Thursday 1 April 2021

3 Ways Fintech is Reshaping the Financial Services Industry

The financial service sector is one of the fastest-growing in the world. The industry is estimated to be worth at least $135 billion worldwide, with thousands of fintech startups being founded each year. This large number comes as no surprise; after all, financial services are an essential part of daily life, involving everything from banking and investments to financial technology.

Financial technology or fintech has greatly impacted the way financial services are handled. It’s now much easier for companies to deliver services, manage operations, and automate processes. Although the term broadly refers to any innovation in the way people do business transactions, fintech also describes activities such as money transfers and mobile payments.

How has fintech reshaped the financial services industry for the better? Here are four examples:

1.      Crowdfunding

You’ll be surprised to find out how many startup companies have been funded purely through crowdfunding. Digital platforms like Patreon and Kickstarter have made it easier for individuals to pool funding from various sources into one place.

Gone are the days when aspiring business owners would take out bank loans. Instead, they can receive funding directly from investors to support their projects.

2.      Mobile payments

Mobile payments are some of the best innovations to come out of fintech. Anyone with a smartphone can now quickly pay for products and services, minimizing the need to take out a wallet and handle cash.

The global mobile payment industry is almost worth $1 trillion, proving how efficient and productive the technology has become.

3.      Stock trading

Asset management is difficult and time-consuming, especially when you’re doing everything manually. Luckily, financial technology has made this task much simpler with stock trading applications and robo-advising, allowing investors to manage their portfolios with little to no manual effort. 

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