Future of Fintech – Growth Prospects, Contribution, Support, Arenas Covered & more

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Fintech or Financial Technology is rapidly gaining followers from a few years. We ought to discuss the future of Fintech in this article and visualize the technology, rather closely.

Fintech is actually a new technology that financial services companies make use of in order to improve their delivery of certain services.

Over the past ten years, things have changed and private venture capitals have reached new heights. The number of dollars that people invest in Fintech shows a rise from 5 percent to almost 20 percent.

Seeing the rise in financial technology, we can say that Fintech has finally made a place in innovating the economy.

Scope of Growth – Future of Fintech

The future of Fintech or Financial Technology seems to be bright and it might grow at a rapid rate.

The start-ups in the Fintech industry will start and continuous development of digital infrastructure will take place.

In March 2020, a report found out that besides China, India had the highest rate, that is 87 percent, when it comes to Fintech adoption rate.

It was probably the highest as compared to all the emerging markets in the world. The average adoption rate on a global level is just 64 percent.

The report states that the value of the Fintech market in India in 2019 was approximately Rs 1,920.16 billion.

The report expects the value to go as high as Rs 6,207.41 billion by the year 2025. The compound annual growth will be around 22.7 percent during the years 2020-2025.

Over the years Fintech grew to such an extent that it became hard for people to decide if it was just hype or reality.

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Contribution and Support – Future of Fintech

The Government of India, for a very long time, is trying to create a cashless society with the help of all the financial institutions.

However, this is the dream of the government and will take a few years to make a cashless society.

With the help of technology, officers of multiple companies will help in adopting new technologies that will slowly and gradually lead to better profits.

Many new technologies have found their way to the markets like payment gateways, the emergence of Bitcoin, digital currencies, Internet banking, etc.

With these, Financial Technology or Fintech is paving new ways to make a place in the market. Customers will get custom services, which would be helpful to both parties.

Initially, there was a bit of skepticism when it came to incorporating Fintech by larger banks.

However, with the growing needs and the wave of technologies, Fintech has made its way to the larger banks as well.

In fact, institutions cannot ignore the involvement of technology in finance. They should embrace it.

The crucial part is the role of the regulations by the government that will promote Fintech in such a way that it will create healthy competition in the market.

Earlier this year, NASSCOM or the National Association of Software and Services Companies reported the presence of around 400 Fintech firms in India.

It is safe to say that the tech entrepreneurs of India have given a new shape to the Fintech industry by their new innovations.

Know more about Fintech & its Impact

From Product to Consumer – Future of Fintech

The word finance is way too simple than what many people think it to be. Various factories are present in the market that manufactures products.

This includes the contribution of banks that hold deposits at certain rates of interest, investment managers that help in producing money market funds, or money lenders that ensure that customers’ risks with capitals are written down.

Then comes the stores that trade the products that come from the factories.

This includes the contribution of various branches of certain banks, investment advisors, insurance agents, or credit officers.

What lies in between the manufacturing and selling of the products are human chains, annual reports, and software.

These are linked by law and trade habits. After the day ends, the customers visit these stores and purchase financial products from them.

Computerization is occurring everywhere. People seem to move out of their physical world and into their cell phones.

The process of raw artificial intelligence is applicable when it comes to serving customers.

At many places, knowledge engineering and expert systems are in use. It is to help in generating charts and speak on behalf of agents that would otherwise have interacted with people.

This type of automation that has been very simple in its operation has created tough competition between numerous sectors of industries.

This is because automation tends to use the resources the right way.

All of this has come to such a situation that in recent times the best available digital lender in the market is trying to keep up with the finest available digital payment bank in the market so that it can provide the best digital account available in the market to the customers.

Investor Perspective – Future of Fintech

There are many investors that have invested their money in Fintech companies.

One such investor is Softbank that has financed huge amounts of money into fintech companies that provide products directly to the customers.

They have done this to ensure that they provide the best services to their customers.

The old financial capitalists are quite skeptical about the marketing of their businesses. They are not sure if they could continue working till the end and give back capital.

The competitions between the companies are becoming even more intricate by large companies.

These large companies have newly launched their product-led solutions and this makes them stand out from the rest of the companies that are still thriving to make their place in the market.

Even some digital banks and investment advisors are making it a tough competition.

Know in detail about Fintech Products & Services

From Consumer to Platform – Future or Fintech

It is great to start with Digital points solutions. However, they still are not a great destination for Fintech.

For example, if someone has a headache and they need to buy Disprin, they will not go to a disprin store. They will go to the pharmacy where there are several other products.

In the same way, in today’s world, the e-commerce platform provides several features and offers to the clients.

People who have taken the subscription to Amazon Prime can get the delivery of essential items the very next day the order is placed.

Moreover, they can also watch several movies on Amazon Prime. People who use WeChat have several benefits as well.

They can not only text other users but can also shop and invest money from the app itself. Everyone is slowly and gradually moving towards the times of monetary generics.

Just as Walmart is known to sell not only medicines but also groceries, clothing, etc., in some years it is expected to sell financial products as well.

It is not necessary for these products to come from high-level brands like Goldman Sachs or Apple.

These services are kind of equivalent to smartphones that are off-brand and are made on the basis of learnings from Apple.

A time will come soon where people would not have to buy finance. Instead, in some years people can directly buy them.

Various supermarkets will be seen selling financial services to people who wish to buy it along with all the other grocery items, clothing, etc.

Rebuilding Manufacturing – Future of Fintech

In Historical times, producing financial products was very difficult. It was only assisted by customized software.

Talking about recent times, the financial infrastructure has gone through a huge change.

When it comes to legacy chassis, it is not the same for every organization and unlike it, the new ones have a digital shortage, quick opening of accounts and movement of money, and selling and capitalizing engines.

We can see that the crypto miners spend huge amounts of money each year on data protection and security.

There are many non-proprietary developers that are continuously upgrading the software for every user. Today’s markets still seem to be obsessed with Bitcoins.

On the other hand, Ethereum, the programmable digital ledger of the forthcoming times, is trying to re-invent standards of data. It will help in creating a more effective finance factory.

Conclusion – Future of Fintech

The main thing that matters the most is the capacity of humans to develop and habituate to new changes.

Even the top-level productions in terms of finance can get people nowhere if the entrepreneurs do not bring attractive interfaces and organizations do not distribute the products to thousands and even millions of people.

Fintech has almost started with this. Some banks are trying their best to level according to Fintech but many have failed without them knowing it.

However, the future of Fintech is bright and it will probably grow at a fast rate.

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