Although digital currencies have received plenty of attention in recent years, they are not the only element of financial technology, or Fintech, that we should pay attention to. Fintech is influencing the financial industry both horizontally and vertically, and its impact is felt by companies and consumers alike. Let’s take a look at how technology is advancing all facets of the finance industry.
Venture Capital—Now a Crowd-Source Option
In small but mighty ways, fundraising is being influenced by the sheer accessibility of the internet and the ease of financial transactions that can occur online. What makes this trend especially disruptive, though, is the fact that venture capitalists are no longer the only source of funding for businesses and entrepreneurs. Nowadays, ideas are fueled and funded by people from around the world. This reduces industry limitations and brings about an age of true democracy for business ideas.
Savings—Now Called a Mobile App
A financial trend that circumvents borders, cultures, and backgrounds is this advice: save your money. Putting cash aside for the near or distant future is not just a recommendation, it’s a necessity. However, with debts and paycheck-to-paycheck lifestyles becoming a reality for an increasing number of people, it’s not always easy to do so. This is where Fintech comes in, stepping up to the plate as a saving enabler. Financial technology has made it easy to safely link up financial accounts and track transactions from debit, credit, and other digital finance apps. One such resource, Mint, has over 15 million users to date! Budgeting is now an easy, accessible activity.
Payments—Now Processing as Digital Accounts
With the number of products and services offered through the web, online payment systems are bigger than ever. So, it’s no surprise that PayPal has over 286 million worldwide users! As the ’20s continue, we’re likely to see even more accessibility and advancement of these systems, such as payments made through the dashboard of your car. On the business side of things, we’re likely to see an increase in acceptance of digital transactions, due in part to artificial intelligence. AI-regulated payment processing establishes greater confidence in online and international transactions. This is due to AI’s ability to identify and filter fraudulent activities.
Mobile—Now Leading the Way
As payment processing technology develops, mobility becomes an increasingly important operational component. This leads to one of the big trends in Fintech: mobile payments. You’ve likely seen ads for or used apps like Robin Hoot and Venmo. Such software lets you exchange stocks and currencies through your cellphone, making investments and transactions easier than ever.