Fintech was born as a solution to the global financial crisis of the early 2000s, so it’s a very young industry. But how can these young fintech companies survive against long-established competitors?
By reimagining the way that we all handle our finances, and offering innovative and disruptive solutions. For decades, banks had little competition, and they were slow to update their operations and offerings. So, fintech stepped in to fill this gap and meet ever-growing customer demand. And they’re quickly taking over the world.
Additionally, thanks to recent advancements in technology, the fintech industry is becoming one of the most sought after industries to pursue by young professionals. They’re hoping to not only make serious money, but also to be a part of something new and exciting. And although their odds of becoming a billionaire might still be slim, that doesn’t mean these professionals won’t make some serious bank by pursuing a career in the growing fintech industry.
Here are some of the big changes coming to the fintech industry:
Virtual Banking and Trading
In the fintech industry, one of the best applications of VR will be in the form of virtual banking. This is projected to be especially popular with younger generations, as they are more willing to embrace new solutions and technologies. It’s also expected to be a popular way to get younger generations more interested in the stock market. It can offer individuals tailor-made experiences that will be used to persuade them to invest. In both virtual and investment banking, VR can present a way to visualize the data, personalize the experience, and offer context — all in a way that was impossible before VR.
Developers are also currently working on a way to allow traders to use VR for cash flow forecasting and sharing visualizations of potential trades with investors. This is expected to be hugely popular with investors, as it offers them a competitive and luxurious experience. VR can entertain them and keep them engaged, while offering them an educational visualization of how their money will be used.
image via Unsplash
More Partnerships with Big Banks
Long-established big banks and fintech companies need one another: The big banks need fintech’s innovative and in-demand tech solutions, and the fintech industry needs the big banks’ large (and loyal) customer base. Many consumers are frustrated with their current banks’ offerings, but they’re not interested in switching to a different big bank or a new, modern bank. By partnering with these long-established banks, fintech companies can offer quick solutions to the ever-evolving changes in consumer taste and demand. In the near future, expect bigger partnerships, bigger platforms, and an even greater number of offerings.
These partnerships will also help big banks to meet the demands of small business owners who want banking support with cash flow systems, invoicing software, and payment gateways. This is good news for the fintech industry even if big banks don’t meet these demands or take more risks on small businesses — in the Internet era, small businesses will just turn to a fintech company to take care of their needs.
Blockchain Support
By 2020, nearly 80 percent of companies in the fintech industry plan on adopting blockchain in order to cut down on costs and offer consumers a more secure alternative to big banks. Blockchain is a digital ledger of transactions that can’t be altered in any way, and it can be used for any transactions of value. Blockchain support will be a huge selling point for businesses that the fintech industry caters to because it will help those businesses to cut down on fraud and cyberthreats.
But this technology is necessary not only for businesses, but for consumers worldwide. As consumers grow to prefer online banking, and as cyberattacks continue to become more commonplace, it is becoming increasingly important that consumers know their transactions are unaltered and secure. By many in the fintech industry, blockchain is seen as the solution to these issues — a solution that can’t be adopted quickly enough.
Featured image via Unsplash
