Rise of FinTech: Opportunities and Potential

Financial Technology also known as FinTech, is a term you might have come across every now and then. But do you know what it means? It refers to software, mobile apps, or any other technology that is created to improve & automate banking & financial services for consumers and businesses. From mobile banking to cryptocurrency, it has a huge industry that is forever evolving. This innovation has revolutionized the finance industry to a whole new extent.

The industry or the concept of FinTech isn’t new, however, the growth it has been seeing in recent times is astonishing. If you think about it, you use it every single day in the form of mobile money transfers, banking apps, etc. The surge of internet and smartphone users all around the globe is one of the major factors responsible for the rise of this industry.

How does it work?

Over time this industry has influenced the way money has been used at local as well as global levels. In general terms, it is a digital way to transfer money in a fast, secure, and affordable manner. Due to the integration of AI, machine learning, blockchain, and data science into traditional financial sectors, the industry has been able to reach new heights. Today financial institutions such as banks, brokerage firms, insurance companies, accounting firms, etc. use Fintech as a unified body. The baseline of how it works is by eliminating the unnecessary processes involved in financial transactions. For example; Transferring money no longer requires one to deposit a cheque or cash or a person at the bank. It saves time, travel costs, and paper to some degree.

Moreover, it mitigates one of the main issues with traditional finance i.e. security & data discrepancy. With new innovations, Fintech has been developing ways to combat fraud while reducing operational risk and improving data analytics. We are all familiar with data and information leakage every now & then that is why the security measures in fintech today are quite extensive.

Potential

Over the decade, the status of FinTech has changed and grown exponentially. Today, it is a part of every aspect of our lives from paying for your grocery bills to borderless payment. Its potential to lower the cost of transactions while increasing accessibility & speed is what made it so popular all over the world. The potential of this industry lies way beyond just mobile money and it has proved itself during the COVID-19 pandemic. Even today billions of people are not very confident or friendly with digital transactions, so its potential remains endless and unwavering.

Companies today are building customized software for fintech industries that provide deeper insights, analytics & security to customers. A built-in security feature that can help reduce/detect fraud all curb the risks of data hack is improving overall security and customer satisfaction. Innovative industries are now leveraging new technologies & data governance to keep away hackers. The power of AI, ML, and blockchain technologies is being recognized to strengthen security and fix loopholes. Hence, the potential of Fintech and companies that are related to it in one way or another is growing.

Opportunities

It is certain that the fintech market is growing and will continue to grow for years to come. It is not possible for us to foresee all the opportunities the future holds for this industry but here are some opportunities & thriving trends in this sector.

• Data Analytics: Data drives valuable insight into customer satisfaction, providing companies with the information required to personalize and add value to their services. Data helps to create tailored and target the right users in order to improve operations, maximize profit and foresee clients’ wants and demands.
• Personal Finance & banking: Fintech gives excellent transparency, financial autonomy, and budgeting facility which in turn provides greater satisfaction to customers. People can manage their finance and banking with a simple click on their smartphone connections. This trend will continue to grow over time.
• Investment Opportunities: Over time Fintech has become one of the fastest expanding industries worldwide with potential yet to be unlocked. It is certain that the competition among the finance companies will lead this industry to grow in a much more innovative and creative way making it one of the most investment-friendly industries.
• Blockchain Technology: Blockchain technology in finance digitizes trade finance by adding security & efficiency to the process. Used in bitcoin transactions because of its security feature, it can also be used in finance and hence increasing the credibility of Fintech. It removes third parties from the finance while creating a safe financial space.

Key Takeaways

• It is a disruptive trend that will replace the traditional finance sector.
• Expect the future of Fintech to go above our normal analysis as of now.
• Personal financing, budgeting, and banking will be much easier.
• Blockchain Technology will grow to be a much bigger force even if it is not used as widely in Fintech.
• Its development will add all rounds of valuable insights into cyber security.
• The market and careers in this field will continue to grow in the years to come.

Do you want to start your Fintech Journey? RARA Labs provides both careers as well as services in this field. Watch our revolutionary Fintech innovation, an efficient way to manage accounting and finance for modern businesses.

RARA Digital Labs is an IT company that specializes in creating web services and apps. We prioritize and understand your needs to create the best product for your business.

Write to us at hi@raralabs.com and get in touch with us today! Let’s develop a mindful product for your business, let’s revolutionize the industry!