Financial Technology or FinTech is transforming the picture of the financial market at a pace no one had ever dreamt of in the past. The fact can not be denied that Fintech has emerged to be a great buzzword. But…don’t you think the hype it is receiving is actually worth its current value in the market? So yes, its craze is not based on any false ground. In India, net Fintech funding reached a spectacular height of $210 billion.
And, guess what the most notable fact is? The market size of the global Fintech industry was worth $110.57 billion in 2020, and it is just going to multiply manifold to touch $698.48 billion by 2030. A CAGR of about 20.3%, considering the growth from 2021 to 2030!
A promising future awaits the Fintech industry, and it is just going to be all rosy and dreamy for the industries dealing with financial technologies. In the coming days, we will witness a further mass adoption of digitalised payments as monetary transactions are being made rapidly and securely, without the users even having to move an inch from their respective places. As Fintech is emerging to squash fences and barriers, it would be interesting to see how it transforms the market scenario, and most importantly, how promising a future it is going to have.
Keep reading the article till the end to know about the potential of Fintech and its future in the world at large.
Top Trends Leading To The Creation Of A Golden Future For Fintech
- Creation of Digital-Only Banks
Digital-only banks or Neobanks are sprouting at an explosive rate, and as you can already guess, the establishment of these banks are giving a major push to the growth of the Fintech sector. Unlike the conventional banking system, neobanks are not going to have any physical building or infrastructure.
Customers are in complete favour of the neobanks because they can now get their work done without having to commute to the brick and mortar setup of the bank and wait for their turn to come up in the long queue.
With neobanks, customers can now avail themselves of services digitally by using a great range of devices such as mobile, laptops, tablets, etc. As the concept of neobanks gets popularised in the market, the use of financial technology is going to be used to a great extent. This automatically shows that Fintech is going to have a good time of its own, in future.
- Highly Secured, Contactless Payments
Various business firms and global tech giants are now moving towards adopting safe, contactless payments post-pandemic. A great development in the financial sector is the innovation brought about by various firms and enterprises. Highly powerful payment solutions are now being provided by top Fintech companies, and therefore, the dissemination of these services is going to ensure the creation of a bright future for Fintech. The advent of COVID-19 has further accelerated the payment mode to being contactless, thus assuring zero contact between individuals as they attempt to abstain from exposing themselves to danger. Thankfully, this circumstance has given a major push to the Fintech sector.
Related Article: Has COVID made the E-commerce sector boom?
- Availability Of Service On API Platforms
Fintech companies are now concentrating their efforts towards offering solutions such as mobile and e-payments, financial management, alternative finance and much more to various firms so that these can keep their customers satisfied and appeased with their services. In fact, banks and several other financial institutions have started offering services on their API platforms that can be easily accessed by consumers via their smartphones. Getting loans at good interest rates has also become possible with the advent of online leaders transforming the financial marketplace with the help of Fintech.
Factors Responsible For The Creation Of A Promising Future
- Advancements In Technology
Fintech companies have been greatly influenced by the sophisticated technologies of Blockchain, Artificial Intelligence or AI, cloud computing, etc. The flourishing of Fintech would have been a rare possibility if high-grade technological developments had not dawned upon us.
- Quick Adaptability To Recent Trends
Once again, the advent of technologies has brought about a golden opportunity for Fintech companies to live a rosy future. Due to the availability of data analytics, cloud computing, and AI, Fintech companies are now able to get greater insights into the various trends that are going on in the payments sector. In that way, the Fintech startups are being able to modify their services as per the trends that emerge in the market. Of course, this is a great plus point for this sector, and it is not surprising to see that Fintech is now going to achieve even greater heights, in the coming days.
- Changes In Consumer Behavior
Consumers are now dismissing the services offered by traditional establishments, and are now looking for ways to complete every activity simply and rapidly. Their desire for a hassle-free, safe and secured payment system has shaped up a lucrative future for the Fintech sector. All the companies, firms, banking institutions, etc. have the common aim of keeping their consumers satisfied. As these companies are falling back on the Fintech service providers to keep their customers appeased, it is not tough to interpret that Fintech is going to seize the world shortly.
Related Article: The competitive landscape of Fintech in India
Fintech is revolutionising the market with its highly impactful services such as wallets & mobile payments, value-added services, loans or mortgages, wealth & asset management, and much more. Financial technological services are going to have immense popularity and craze in the market, and the advancements in this area are going on at a thundering pace. There are some challenges such as data protection, and consumer trust and loyalty that are yet to be thwarted completely by Fintech. Once these challenges get removed, Fintech will become unstoppable in its pursuits of achieving the peak of value in the market. Let’s keep our fingers crossed and look out for the great transformations going to occur in this space, in the future.