A few years ago, financial services and technology had a baby called Fintech. Fintech is the word used to describe the financial technology and companies that use it. Every banking app on your phone, website, software or cloud service you use to connect with a financial service, is part of this huge trend that will only grow bigger and bigger.
The way we manage our assets has changed. We can now pick our phone and in less than 1 minute we can pay a bill or send money to anyone on our contacts list.
Whether purchasing a coffee or paying a service, Fintech is there.
It was estimated that there are nearly 2 billion people worldwide without a bank account and Fintech gives the possibility for everyone to gain access to so kind of financial service with ease.
But Fintech is not only about banking apps. So what else is there?
1. Blockchain and Cryptocurrency
Last year we made a blog post about Cryptocurrency: What it is and why it was created.
Cryptocurrency and blockchain are the perfect example of Fintech in action.
2. Crowdfunding Platforms
If you have an idea of a project or a prototype that you need financial aid to grow into a million dollars product, companies like Kickstarter or Patreon allow you to show it to the public and if people like it, they might help financing it.
The number of crowdfunding platforms and projects have grown a lot.
3. Robo-Advising and Stock-Trading Apps
Robo-advising has disrupted the asset management sector with algorithms that do recommendations on how you should be managing your assets and portfolio with an increased efficiency and lowered costs.
4. Budgeting Apps
Excel spreadsheets are a thing of the past. Budgeting apps are on the rise.
I personally use Spendee, an app that allows me to understand where my money is going (food, entertainment, healthcare etc), create budgets and even invite people to share a wallet.
Fintech is not a thing of the future, we already use daily and as we reach the end of 2019, now it’s the time to try to predict where the industry is headed in 2020.
Fintech in 2020
In 2020 there should be a rise on personalised and targeted offerings like personal loans, credit cards and account checking. This will be powered by another rising trends, Artificial Intelligence (AI) and Machine Learning. Companies will use these technologies to deploy new innovative solutions to gain a competitive edge by creating smarter workflows and provide the right information at the right time.
As for the Blockchain technology is concerned, banks are showing somewhat of a resistance on accepting it, but it’s a really important step that must be taken sooner or later.
How blockchain will revolutionise payments and how Fintech will embrace Machine Learning and AI, remains to be seen.
Where do you think Fintech is headed in 2020? What App or feature would you appreciate? And what are your concerns?