There’s a revolution underway in the Fintech space.
When people think about the typical Fintech company, they often picture a scrappy Silicon Valley startup with big ideas about disrupting the world of banking, lending and payments. They picture a company with a lot of potential, but limited impact. That’s no longer the case.
The industry has grown up in a big way, and technology companies have become heavy hitters in the financial services space.
Call it Fintech 2.0
And the industry continues to grow and evolve! The adoption of Fintech products and services worldwide nearly doubled between 2017 and 2019, according to EY’s Global FinTech Adoption Index 2019. What’s more, 96 percent of consumers were aware of at least one Fintech service to transfer money and make payments.
There are thousands of Fintech companies globally, and more players are entering the space all the time. This explosion has been driven by a fundamental shift in the financial services industry and consumer behavior. In the past, an individual’s finances were routed through just a few financial institutions. Industry growth was limited to those financial institutions competing for a greater share of the pie. Today, fast-moving technology and tremendous amounts of data enable new innovations that are redefining how people and businesses manage their finances. It’s led to an onslaught of new disruptive products and services that have come to define the Fintech revolution.
Expanding Possibilities with New Fintech Players
The Fintech revolution is no longer limited to the financial services sector. Organizations are finding new ways to infuse and embed Fintech offerings into existing customer touchpoints, from the smallest startup to the world's largest companies. Online retail behemoths like Amazon now offer on-demand financing at the time of the sale rather than outsourcing it to third-party lenders. In-app purchases are facilitated through digital payment providers like Venmo, allowing consumers to complete their transaction without ever leaving the app. Car dealerships and other big-ticket sellers text insurance options to consumers at the time of the sale.
Fintech 2.0 is changing how a range of consumers and businesses interact with their finances. It’s creating new revenue possibilities and driving further demand for Fintech expertise and experience at organizations in a growing number of industries. Now, it's up to you to keep an eye on the Fintech sector, scale your development teams, and find an innovative and impactful Fintech partner to support your organization and bring it into the next generation of the Fintech revolution.