Written by Ramma Shivkumaron on Digilah (Tech Thought Leadership).
This is the age of innovations and agility, and when we mention these disciplines, how can the mention of Fintech, unicorns, and entrepreneurs be far behind?
A Fintech is a young company that has developed a unique business idea, aims to make an instant impact, and take over the market.
The Pandemic and Arising Fintech Opportunities
The pandemic drastically pivoted the focus of many entrepreneurs to solving pandemic-driven existing and future problems of the industry. Many Fintech realized the hidden prospects behind the pandemic-related challenges.
How the small businesses across sectors were crippled due to restricting CoVID-safety policies. For example, Gusto, a small-business payroll provider, “has been working around the clock to help small businesses get loans via the Paycheck Protection Program.
Most financial technology innovations have led to a single goal in the banking sector – better service value. How? FinTech innovations have a basic infrastructure of creating value for targeted users.
For example, a mobile payment gateway gives value to online traders. Digital banking provides ease to the value chain of open banking services.
A report by the Economist shows that FinTech is fast making banks more customer-centered in their business model. Banks now have more insight into more information through Big Data and Artificial Intelligence.
Also, FinTech tends to focus on a specific financial process, which opposes traditional banks’ strategy of hooking customers to its entire ecosystem. This method helps them build trust with their customers. In fact, 90% of FinTech believe that customer experience is a priority.
Take Revolut, a FinTech company that focuses on customers’ needs at all levels, grew from 150 thousand customers in 2017 to more than 8 million customers. According to Ron Olivera, Revolut plans to expand its product in the US in 2022 by taking customers from legacy banks.
A payment and service provider, Klarna, is another customer-centric FinTech company disrupting finance with its marketing strategy. They recently launched a “Consumer Council” program for consumers to share their experience of using the product.
By listening to consumers, FinTech has understood consumers’ wants and needs.
Fintech is a foundational force that will continue to transform the financial landscape over the years. As per the E&Y survey, Asia is the biggest consumer of fintech, and The USA is the biggest producer.
FinTech’s are mainly built to escape the poverty trap in a society that used to be mostly cash-based. It is to revolutionize money and the credit industry as well.
Some of the trends prevailing globally:
-The latter half of 2023, the market may face challenges, but Fintech are predicted to receive funding and attention.
-Fintech funding, particularly in payment, insurtech, and wealth tech sectors, may increase as the market stabilizes.
-Improved market conditions may also lead to more M&A activity as investors seek out promising opportunities.
Conclusion:
It is important to dream, have the ambition and vision to set the bar high to enter a whole new world of Fintech that will drive strengths, and diversity and intensify the economy of the country.
Most searched questions
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