How fintech is growing
Fintech refers to any company that provides financial services through software and other modern technologies as a way to improve automated and financial services. This technology is more commonly seen when it’s used in mobile banking but can also be seen when dealing with things like cryptocurrency. In this blog, you will know about How fintech is growing.
This industry has a rich history and the technology is here to stay. There are many innovative fintech companies already and the industry is only going to grow. We’re here to talk you through the evolution of Fintech through its three ages and what you can expect to see in the future.
The three ages
- Competition – between 1858-2010 fintech companies began to create services that they believed could compete with the big banks but found it hard to attract customers.
- Collaboration – from 2010, fintech companies realised that they had the right technology but lacked the scale and distribution that the banks could offer. From here, they decided to partner up with the banks instead of fighting them.
- Cooperation – now working together, fintech companies and banks have combined to produce open banking solutions and created a bank marketplace that huge companies are joining with the likes of Google having their own banking desires.
The last decade
The last 10 years have seen this industry grow exponentially with the digital media age. Ecommerce was on the rise and people began to shift towards digital payments rather than giving cash in hand when they purchase new products which has created a demand for these services.
Thanks to the global pandemic, ecommerce thrived further with an estimated 230.5 million people in the US being online shoppers. This has meant that fintech continues to be needed and has therefore continued to grow into the goliath that it is today.
The future of fintech
The future of fintech is hard to fully predict due to its rapid growth already. With ecommerce expected to still dominate the world of shopping, it’s likely that fintech’s will still play a pivotal role. However, some early signs suggest that it is expected to become more centralized and portable to allow for easier use and access but it may also move to the background due to it having a more commonplace in society.
Fintech is growing and is a major player in the global economy and the way humans function in their everyday lives which is why it is here to stay.