The hotel industry was hit hardest during the pandemic. We should learn from their experiences to devise future strategies
FinTech Verticals At a Glance
The financial technology industry is the bedrock of global trade and commerce. FinTech which is an abbreviation of Financial Technology is also the common terminology used to describe innovative technology-enabled financial services across several verticals. In recent times, the industry has witnessed massive acceptance in developed nations and also making meaningful incursions into the developing nations. At the onset, the scope of FinTech was limited to money transfers and cheque deposits via SmartPhones but it now includes a broader range of services which includes retail banking, fundraising, investment management, financial education etc. In this article, we will take a look at some of the verticals of the FinTech industry expected to show impressive growth within the next few years.
FinTech is Changing the Economic Landscape
Governments of the world are beginning to modify and transform their financial regulations and strategies to align with innovations from the FinTech industry. By 2018, the FinTech market was $127.66 billion and is projected to rise to a value of $309.98 billion by the year 2022. The major FinTech users are the Business to Business (B2B) and Business to Consumer (B2C) operators. The range of applications available via the platform includes crowdfunding, mobile payments, cryptocurrency, robot-advising and stock trading apps.
While the world is quickly moving towards demonetization, a host of FinTech companies are already worth $1 billion, and with massive investments and partnerships in the sector, several others are due to an increase in value within the coming years.
The Fintech industry is more active in Europe than in the USA and Asia. Europe has taken a leading role in the FinTech industry with companies like Axios Holding focusing on developing financial services all EU citizens can use regardless of currency or language. It's a great example of a Fintech company investing in a vast range of online verticals related to the industry at large, Technology, Education, Brokerage and Liquidity, Lending, Payment solutions and more. The Director and founder of Axios Holding, Rati Tchelidze has been quoted saying they turn "tech ideas into reality", fueled by "the challenge and thrill of creating technology products that change entire organizations". Doing so his companies partner with other companies offering similar services to provide comprehensive financial solutions to clients all over the world.
Innovations & Technology
The FinTech industry is indeed innovations based. It was borne out of innovation and its survival will be based on its ability to evolve and develop new innovative approaches to provide financial services. Collaboration between the FinTech and the IT sector is an important factor behind the success of a Fintech company, not at least in the development of the IT industry of the Eurasian countries. By bringing businesses and high-quality entrepreneurs together the benefits of financial innovations will invariably ease the process of financial transactions and facilitate a higher volume of trade both between individuals and business entities. The Internet of things (IoT) Artificial intelligence and cloud computing have all contributed greatly to the emergence of FinTech. Based on the integral roles these resources provided, it is hard to conceive a future of FinTech without them. With capitalism being the major economic strategy of many nations, the application of financial technologies and innovations in the nearest future is likely to increase even further.
Asset management will also receive a boost as it would become a lot easier to manage asset portfolios across different platforms. The range of data processing and analyzing tools already simplified for use by the average individual will ensure a higher level of financial literacy uncommon in the era preceding the dawn of financial technologies. Financial technologies are opening up a new vista of opportunities and granting entrepreneurs the leeway to venture into difficult terrains to provide services since the payment solutions are more advanced and easily accessible on smartphones across mobile telecommunication networks. As mobile phone manufacturers are making huge sales annually, the rise of FinTech is only expected to grow further as customers will take advantage of the several apps providing financial services.
Education is a subset of the FinTech industry that comes with lots of potentials for growth. Clearly, education is a major way of empowering people with the requisite knowledge to make informed decisions. It has played a major role in the financial sector already and it is the reason behind the discrepancy in the acceptance of Fintech across various nations.
Already, FinTech has interrupted the financial sector and has significantly influenced how we spend money and close business transactions. It has harmonized the services of banks and technology providers thereby presenting a platform where both can partner together to serve people better.
Millennials & The Future of FinTech
Obviously, FinTech is focused on Millennials and Gen X as this will be the generation of smart technologies and automated solutions. This generation will be the most technology savvy and major players within the financial sector. The future of FinTech is really great and while challenges may come in the form of regulatory frameworks by different countries and data protection issues, the industry is still primed to witness a steep growth.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes