In this blog, lets discuss something about Growth of FinTech industry and its impact. “The Financial Technology industry, commonly known as FinTech, is now handling digital transactions all across the globe. The increased utilization of mobile devices and technology-based solutions is pushing the demand for financial and banking solutions to be processed through personal devices.
Following the trend, prominent banks and financial firms are heavily investing in technology-based solutions leaving the traditional methods of business way-behind. This is where the FinTech startups come into action. With increasing consumer engagement, FinTech is driving concrete growth in adoption rates.
Since its inception, FinTech industry has driven new business models in the IT industry. It has globally become mainstream in several business models. As per the EY analysis, 64% of global consumers are adopting FinTech and 96% of consumers have heard of FinTech money transfer and payment services.
As per the research accomplished by Consultancy.eu, investments in FinTech have reached a new record in the year 2018. A whopping $112 Billion, a 120% increase from $50.8 Billion in 2017, was pumped into innovative companies that pursue technological innovation in the financial sector.
Indian economy, which significantly runs on cash, has seen exponential growth after implementing technology-based solutions. Organizations are using a range of payment and transaction methods such as e-wallets, lending and insurance, etc. The immense variety of services provided in this sector have changed the way consumers carry out their daily transactions.
Consumers nowadays are attracted to using a consolidated platform. 60% of consumers prefer to access services through a single platform. FinTechs are powering and driving adoption of centralizing platforms and marketplaces through technology. They are also making benefits by partnering with, and acquisitions by, banks which turn into in-house development. FinTech startups have started approaching smaller cities and industries in terms of credit and financial guidance. This startups seem to have seen humongous business growth in smaller cities.
Companies can bring several benefits to the economy:
Efficiency:
Innovations in financial services strengthen business models and automate the decision-making process.
Convenience:
FinTech has the ability to improve access to a range of financial services in small cities with limited to no access to banks and where the financial market is in an early stage of development.
Decentralization:
When it comes to lending, big data processing and automation of loans have reduced numerous barriers. Many banks and financial organizations are adopting distributed ledger technology like Blockchain that makes the process easier for the organizations as well as for consumers.
Digital and technological innovations have transformed business operations across all industries. FinTech is also proving to be a disruptive force for not only financial but for other business verticals also.
FinTech helps improve business models and lessen the associated risks such as payment, wealth management, or any other finance-related activity that takes place in an organization.
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