Fintech is not just some trendy name and stylish smartphone apps aimed at various audiences. It is a vibrant ecosystem full of various stakeholders.
There are the startups redefining banking experiences, the established institutions that have thrown themselves into embracing digital transformation, and tech giants venturing tentatively onto the financial ground.
Fintech pioneers
There are already mobile payment apps such as M-Pesa in Africa and WeChat Pay in China that have shown fintech has the ability to easily trump their traditional infrastructure, even empowering communities among those deemed most remote.
Digital banking revolutionaries
Goodbye to bank buildings and hello round-the-clock availability. There are fin-tech banks like Chime and N26 that have reinvented convenience by ditching huge fees and providing stylish mobile user interfaces for financial management on the go. There will be no more standing in line at the tellers. These platforms put the consumers in control.
Robo-advisors
Consumers do not have to make huge minimum investments and decipher shady fees. Robo-advisors such as Wealthfront and Betterment use algorithms to create tailored investment portfolios, thereby rendering high-quality financial advice available even for everyone who is not part of the elite.
New lending landscape
Fintech platforms like Upstart and Prosper are changing the traditional loan application process. By eliminating intermediaries to connect borrowers with investors directly, they allow faster approvals, competitive loan rates, and flexible terms. They cater specifically to segments that are often neglected by standard banks.
Tech makeovers in insurance
From weather-specific parametric insurance policies to tailored, on-demand coverage for gig workers, technology companies in the business of ensuring risks are introducing flexibility and specialization into an otherwise rigid industry.
Personalized policies for someone’s daily drive or even their freelance operations could be just around the corner as we look forward to where insurance with a fintech twist will lead us in the future.
Financial inclusion
Enabling millions of unbanked and under-banked people to join the formal financial system, empowering them with knowledge about finance so that they could play a part in forming an economy that was beyond their reach before.
Personalized finance
Use of big data and AI in creating a unique financial product or service specific to someone’s needs
Transparency and efficiency
Transforming the way of working by automating processes, reducing paperwork, and encouraging secure digital transactions against a background that ushers in an era of increased transparency with reduced costs for both consumers and businesses.
Democratization of knowledge
These include empowering individuals with easy access to financial information and tools giving them the confidence that they can make informed decisions about their finances without having to depend on experts.
The future of fintech
In the future, it can be noted that fintech is not just revamping the rules of finance. It’s reinventing the very fabric of financial systems. Fairly soon, people will be able to live in a world of financial assistants powered by AI. For instance, a person in need could get a virtual financial advisor who would give him personalized advice and automate budgeting tasks.
Another possibility for the future of frictionless cross-border transactions in fintech. It may be as easy as sending out a text message to transfer money internationally, across any place or currency basis of the people involved in that particular transaction or business.