The term FinTech has not been long for this world, but it’s already a major buzzword in both big and small businesses. If you didn’t know, FinTech stands for Financial Technology, and the concept is not new. After all, ATMs are technically financial technology. However, what is new is the disruptive nature of the current FinTech trend. Everything from banking apps, to new payment methods, to the best technology for financial investments, form part of the FinTech revolution.
We need to keep an eye on FinTech for a range of reasons. These are the top five (5):
- It’s a HUGE industry
In 2008, investment in FinTech was calculated at a “meager” $930 million. Accenture’s recent report found that the number had grown to $12 billion at the beginning of 2015.
Whether or not you’re in the industry, this is a reason to take notice. Chances are you’re already using some of the latest FinTech innovations. If you’re running a business, it’s time you partner with a company in the field – for your own basic payment needs and for the mutual growth it will bring.
- It’s disruptive
The major reason FinTech is making waves is that the industry is incredibly disruptive. It’s taking on traditional banks. Things like cryptocurrencies, including Bitcoin are gaining traction, the price of a single Bitcoin is now more than $1,000. Startups are finding new ways to challenge traditional banking and financial products and services such as by eliminating commissions on buying stocks as is the case with Robinhood. Companies like Robinhood are threatening the establishment, not that that’s a bad thing, competition is always good for the consumer.
You need to get on top of the latest FinTech trends, as chances are, they’re about to disrupt your own business or job. You want to be riding the wave when the tide comes, not caught in the undertow.
- It’s constantly evolving
Where FinTech excels in the modern world is that it never stops evolving. With technology in general progressing at a lightning fast pace, we can’t take anything for granted. The job you do? It might not exist in 10 years. Your new business? It might be irrelevant before it’s ever profitable.
FinTech companies know this, and they make use of this fact, rather than try to survive it. FinTech products are constantly getting better, mutating into something new and improved. It’s the industry that will always be relevant – that’s its very nature.
- It’s changing consumers
For better or worse, consumers now expect everything to be possible from their smartphones. Transactions, investments, taxi rides, and more, are all available at their fingertips. And you’ve got to fall in line.
The simple technology of online payments has made this all possible, and it’s evolving from more than just credit card checks. Virtual currency, credit, etc. are now par for the course. Think about your own expectations. Now, make sure you’re providing that to the new wave of consumer.
- It’s only just gotten started
While the FinTech industry is already enormous, it’s still relatively new. Vast changes are happening every day and new innovations come out before you can get used to the old. At this year’s Peak Pitch event, hosted by New York-based VC Primary Ventures, the top four (4) companies who’s pitches won were all FinTech, making it clear that the industry is piquing the curiosity of investors looking for the next big thing.
Those who are on top of the latest trends can participate in the process. Even if it’s not your industry, you’re going to be affected by it. FinTech is not going anywhere, and we can’t afford to ignore it.