This pandemic has taken a toll on all the brick-and-mortar stores. It has affected almost all sectors and all economies. It has taught us a lot of things but the most important thing one has learned from this situation is that life doesn’t stop! Even if you’re captivated in your house for more than a month, you need to earn to eat if you don’t want to use all your savings. But with the advent of technology, many of us continued to work from home amidst this pandemic. That’s what the greatness of the internet is!
Not just work, the internet could also come in handy if you are a customer. Everything works online these days, be it buying groceries or paying phone bills. So why not the Financial Industry?
Fintech is a portmanteau of the words Finance and Technology. The fintech industry started with the internetisation of everything majorly since the 21st century. Imagine if you weren’t able to buy essential items online and pay for them. Or if you weren’t able to pay your installment for your bank loan as you fear going out? With the implementation of Fintech applications and software, it has all become possible. Initially, it started as a backend system of financial institutions such as banks, large companies, and investment and insurance companies but now this industry leans more towards consumer ease and flexibility.
Understanding Fintech
Fintech is a broad industry that has yet to develop its roots deeply. The fintech evolution started basically to ease the backend processes of banks and other financial services. But today, it has enabled us to ease all the financial transactions. There are several tools out there today that facilitate many organizations and SMEs to track and manage their finances. It includes all the budgeting apps and payment gateways. It has also swooped its way in the largest online economy exchange through Cryptocurrency.
This is just the beginning of Fintech and it has spread its presence in all the areas starting from banking to e-commerce to payment gateways. It has also helped to normalize global monetary exchange through PayPal so anyone can now work remotely for any company across the globe and not worry about currency measures.
Fintech Future
As today the new normal is masks, internetization of the financial services will also have to be accepted as the new normal. There are a lot of people who have not yet come out of believing Fintech is Godlike and a boon for banking and something that’ll be much more ethical than other traditional banks. But this coronavirus crisis has thrown a light upon it all. Technology does make things easier but it also has flaws. Many institutions did face a lot of trouble with the technicalities. But fintech’s future has never been brighter! All you need is good assistance or a proper setup to help you with your finances or a startup. Check out how easily you can set up a fintech software!
Till now there have been a lot of experiments in various industries through fintech starting with banking to eCommerce to cryptocurrency. But these innovations have also cost much for security purposes in the form of cybersecurity expenses. However, we all know that major innovations in IoT, AI, Robotics, and Blockchain are the drivers of the Fintech industry. Plus with the technological advances in almost all industries, banking and financial services are bound to change to avoid being left behind.
And now it is even easier to launch a startup through the IT platform. With the apps like M-Pesa, mobile money is also becoming trendy and essential as not everyone has a bank account and those who don’t, can still transfer their money over to various countries with this innovative idea of mobile money. Not just that, Fintech is also very effective for the SMEs to track their finances through online analytics and cloud computing and also get a hold on the current trends.
This pandemic has given a new normal. Earlier it was mostly about the “cashless” system but now it’s more about “contactless”. It will shape a new dynamic for the Fintech industry. Plus the crowdfunding platforms are also thriving because anyone can now conveniently donate and add their part to the cause they care about in just a few clicks.
Why opt for Fintech?
If not now then when? Amidst this pandemic, everyone has been so uncertain about various things in life or maybe life itself. But the Fintech applications have helped us all very much to in ways unnoticed. Now that contactless is the new normal, digitization of everything is almost inevitable. So here are a few areas and reasons why you must consider opting for Fintech as one of the best ways to start out!
Innovation
One of the most important traits that drive an entrepreneur with a strong determination to start out in a particular field. As we discussed earlier how Fintech has not yet been absorbed in all the industries and is not as vast as other digitalized arenas, there is still a lot of scope in terms of innovation. Although innovation can be brought about in almost every field, it is much easier and delightful in areas that are yet untraced like a traveler’s desire to visit the most abandoned places. M-Pesa, Venmo, and other such applications are examples of such driven ambitions.
Convenience
Fintech started out for efficiency purposes supporting the backend systems of banks and providing easy financial services. It is now inevitable to ignore the fact that everything, in the end, is becoming more customer-oriented. The core differentiator between brick-and-mortar stores and internet services is that the latter is the most convenient for tech-savvy people. You can digitize and socialize the traditional ways of financing and funding taking inspiration from the crowdfunding platforms that have implied Fintech in a very innovative manner. So one of the keys to a successful Fintech startup would be to find a convenient way to solve a cumbersome task that is still being carried out traditionally.
Experimentation
Fintech has set its foot in almost all the past decade’s innovations, for instance, Digital cash, Blockchain, Robotics, AI, Insuretech, Unbanked services, and many more. So what more now? Well, these were just baby steps in the vast territory of the virtual world. The Fintech future holds a much more advanced world. But with the emerging Fintech industry comes a lot more complex regulatory board. RegTech has boomed to look after these issues caused due to fraud in digital cash. It is right now the most important concern of the government. Regulation has also been the biggest issue with Cryptocurrency. It is now a very important and sought after industry for anyone looking to disrupt Fintech. So one can look forward to more experiments with Fintech to expand its horizons.
Globalization
The best example of globalization through Fintech is PayPal. It is one of the reasons why the freelance and remote work in various industries is possible. There are several budgeting apps that help people manage their finances and expenses. Another striking example would be crowdfunding. Platforms like GoFundMe are uniting donors around the globe to donate to the causes they favor. Venmo is also one such example of globalizing with the help of Fintech. Keep in mind, the more attractive interface successes more than orthodox designs. You can be creative in the Fintech industry by bringing in more social platforms that help grab the attention of Millennials.
Is Fintech the future?
Well, like every other industry it has its own perks. Everything that is techy is trendy these days but it also comes with a huge responsibility. The same goes with Fintech future. There are basically two categories that Fintech works in:
- B2B- business to business generally refers to Fintech involved with banks and other financings that limits to businesses like getting loans digitally.
- B2C- business to customers generally refers to Fintech emerged for the convenience of customers. Digital payment apps, peer-to-peer lending apps, crowdfunding sources, etc.
You can further categorise both into other subcategories but the major focus lies in these two branches. The Fintech future holds a plethora of innovations that can disrupt the Financial world and globalize banking, trading, money exchange and a lot more. For instance, supermarkets should have digital payments like highway tolls. Plus, it’s a two-way street. The engagement with customers on various digital platforms is also analyzed and used for a better experience to retain loyal customers. In all, there are several benefits of investing in the Fintech industry to benefit from this contactless era.
The key principles of any Fintech startup would be Automation, Financial analytics, Financial management, and Security. As stated earlier, there have been various experiments in this field already within two decades of its birth, but there’s a lot more to come.
How to Launch Your Own Business Similar to Fintech?
If you’re willing to start your own online fintech platform – you should go with Indiegogo Clone which has customized features to let you roll with your own online Fintech business.
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