There’s no stopping the fintech revolution. However, some may still dismiss these technologies as novelties. These people believe traditional approaches to providing financial services will always dominate.
That’s unlikely. It’s becoming increasingly clear that, slowly but surely, fintech alternatives are becoming the norm for many consumers across the globe.
Need a little more convincing? Just consider the following developments. They illustrate how fintech is continuing to grow, providing people across the globe with unprecedented access to financial services.
A recent survey from deVere Group revealed something very interesting. More than half of all financial services customers are now using fintech in some capacity. That number is likely to grow as more and more people learn about the benefits these products offer. This uptick is fairly substantial. In fact, deVere Group’s CEO, Nigel Green, pointed out that as recently as two years ago, the rate of fintech adoption was noticeably lower.
Green also pointed out that fintech may be growing in popularity so quickly because it meets customer expectations in the digital age. Thanks to the near-ubiquity of mobile devices, people have begun to expect convenience when accessing any product or service.
Consumers have also begun to expect personalization. By leveraging artificial intelligence, machine learning, and related innovations, products can now actively collect information about each individual user during each interaction with that user. As a result, the product or service can be tailored to match their specific tastes and needs.
Green believes this is a major reason fintech is spreading throughout the globe. That said, he also noted that the areas where fintech adoption is occurring at the fastest rates also tend to be areas where many people who are unbanked or underbanked live. New technology has simply provided them with greater access to financial services than ever before.
Consumers aren’t the only ones who have cast a vote in favor of fintech. Investors have also begun to appreciate its potential. This was made evident last year, when investments in fintech companies grew nearly 70 percent from the year before.
It’s unlikely this trend is a fluke. Although certain major deals contributed to the massive increase, firms are consistently investing in fintech startups to a much greater degree than they did in the past.
This is a good sign. Usually, when numerous investors from different firms and countries begin to pay more attention to an industry, that means said industry is primed for growth. The fact that many are prioritizing fintech investments clearly indicates this tech revolution isn’t slowing down any time soon.
Any company in any tech industry needs skilled workers with access to the right tools and resources to succeed. Thus, schools, governments, and related institutions across the world have begun to launch programs designed to train workers and spark innovations.
However, fintech is somewhat unique. Because fintech companies are bound by the laws regarding financial services, they may have limited opportunities to grow as quickly as they could if they operated in other sectors.
Governments are beginning to respond accordingly. Consider the example of HB378. Recently announced by the Utah Department of Commerce, this piece of legislation will give fintech innovators greater freedom to test new products (in a limited capacity) without first obtaining the necessary licenses or authorizations. Eventually, those authorizations will be necessary, but in the meantime, legislation such as this helps to loosen some of the restrictions that can otherwise prevent fintech startups from reaching their full potential.
It’s important to understand that an example such as this also represents one of the ways traditional financial services providers can survive major shifts in the industry. Their experience navigating applicable regulations makes partnering with them a very smart move for plenty of new fintech companies. When you have a partner that’s already worked with regulators on a consistent basis before, you can more easily overcome certain key barriers.
Fintech is significant enough to have its own major conference, Finovate. These conferences frequently bring together fintech innovators eager to show how new technologies can be used to further improve their products and services.
Recently, conference participants have discussed how AI can play an increasingly significant role in fintech, and how niches such as InvestTech, Insurtech, and Wealthtech represent opportunities for fintech companies to reach even more customers. As technologies improve and opportunities expand, it makes sense that more and more smart entrepreneurs will seek to participate in an ongoing tech revolution.
These are just a few reasons any remaining naysayers simply aren’t right about the future of fintech. This industry is here to stay. Those who are willing to realize this truth are more likely to take advantage of it.