As this blog has often pointed out, the fintech revolution is in full swing, with no signs of slowing down any time soon. It’s easy to understand why. Most consumers need to access financial services on a regular basis. Fintech products simply make these processes easier. Additionally, for people who have traditionally not had access to financial services, fintech has made it possible for them to finally begin saving and investing their money.
These are the major reasons why fintech products continue to attract users and disrupt the industry. It’s also worth covering the various signs indicating that this sector is still growing and thriving. In order to better understand why fintech is by no means a fad, consider the following points.
The Rise of Fintech Publications
In the early stages of the fintech revolution, coverage of the topic was usually restricted to general tech, business, and finance publications. That’s beginning to change. For instance, BizClik Media, which already owns several major brands, recently announced that FinTech Magazine is its latest brand. It will join the ranks of several other blogs that have emerged in recent years to focus exclusively on fintech stories.
In other words, these products no longer belong to a niche tech subcategory. Fintech development is occurring so rapidly that successful media companies are launching publications devoted to covering the subject. Clearly, this indicates steady and healthy growth in the overall fintech sector.
Exchange-traded funds, or ETFs, allow investors to take advantage of growing markets by enabling customers to share in the assets that they own. Often, ETFs invest in specific industries. For instance, a person who wants to make general investments in biotech would look for a biotech ETF with a strong profile.
Now, investors can also select from several growing fintech-centered ETFs. In other words, although they may not have the necessary experience to work in the industry, many have stated that investing in fintech provides them with significant opportunities for making money. This is yet another sign that experts are confident in the industry’s growth potential.
Although users have enthusiastically embraced fintech products, the sector’s growth hasn’t been completely unencumbered. Fintech startups face a unique challenge that doesn’t always apply to other companies. Specifically, because they offer financial services, they must navigate the applicable regulations. This isn’t easy for those who don’t have experience in the financial services industry. It’s a major reason why experts often point out that banks striving to stay relevant in these changing times should partner with fintech startups. The bank can take advantage of the technology that the startup offers, while the startup can work with the bank to more efficiently address regulatory issues.
That said, because fintech is relatively new in comparison to other types of financial services, the applicable regulations are still developing. For example, the Conference of State Bank Supervisors recently announced plans to implement several key recommendations from fintech advisors. The recommendations cover several topics and areas of interest, many of which pertain to laws and regulations related to fintech licensing.
The developments should lead anyone working in this field to be optimistic. If fintech was just a passing trend, governments would not prioritize regulating it. The fact that they do indicates that they know fintech is here to stay. They’re simply taking steps to prepare accordingly.
Again, a major reason why fintech products and services have been so successful among customers is because they make completing essential financial tasks much more convenient than ever before. That’s why the vast majority of fintech products have targeted the average consumer.
However, fintech companies are beginning to focus on a new type of customer to a greater degree. Specifically, there has been a steady but clear increase in the number of fintech startups that provide services to small businesses. For instance, as this blog has mentioned in the past, small business owners are now turning to fintech-based lending firms when traditional lenders don’t approve loans. By leveraging information available in the digital realm, fintech lenders can more accurately determine whether an applicant is a safe bet.
That’s merely one example of a new type of fintech service aimed at small business owners. Additionally, fintech entrepreneurs are developing a range of products designed to help small businesses manage their cash flow.
This means that the role of fintech is growing. These products and services are no longer strictly for consumer use. They’re also changing the way in which businesses raise and manage funds.
All of these signs clearly demonstrate that the fintech revolution isn’t stopping in the near future. On the contrary, the industry appears to be growing. Anyone working in the traditional financial services field will have to adapt sooner rather than later.