FintechInnovations

Fintech innovations: home and abroad

Fintech might not just be the next digital gold rush…

Finance technology is nothing new, but it’s growing increasingly significant. It’s no longer the sole domain of disruptive start-ups trying to turn the industry on its head. Big businesses are trying to find their own place by snapping up the start-ups or working on their own innovative ‘fintech’ innovations.

Finance technology is nothing new, but it’s growing increasingly significant.

The original intention of Fintech start-ups was to disrupt corporate behemoths, business models based on cultural principles of old world prestige, preference and reputation. Fintech provides consumer lead solutions expedited by the application of technology. Financial industries face losing significant market share to aggressive investing disruptive technology in mobile payments, bitcoin, crowdsourced loans, wearable technology and asset management.

____________________________________________________________

Featured Course

Corporate Finance Essentials for IT Managers

____________________________________________________________

You can now find Accenture FinTech Innovation Labs in London, Dublin, New York, and Asia-Pacific. These labs bring together start-ups, venture capital firms and major financial institutions in order to push forward fintech on behalf of the whole sector.

According to a report from Accenture the industry is booming, with investments tripling from $4.05bn in 2013 to $12.21bn in 2014. That’s a massive leap forward and a strong signal that big finance now acknowledge the importance of innovation and consumer focussed technologies.

Fintech for seniors

The nature of new, means tech can sometimes get overlooked by seniors.

Admittedly the young might have more of a propensity to be early adopters and a higher willingness to spend disposable income on the latest gadgets, but one fintech company – EverSafe – saw seniors and their careers as a viable demographic.

The UK banking industry is facing a serious threat in the form of digital-only banking.

Due to the anonymity of the internet, fraud has unfortunately become a growth industry. The idea itself is pretty simple. Eversafe scans and tracks a person’s accounts and will alert them – or a family member – whenever it detects suspicious behaviour.

Consumer banking

The UK banking industry is facing a serious threat in the form of digital-only banking.

Very recently, Atom Bank was the first digital-only bank to gain a licence, while another, Mondo, is forging ahead. Digital banks can operate with significantly lower costs than traditional banks who are already struggling to maintain free banking, with overheads mounting from branch operations, personal assistance and antiquated IT systems; all expenditures that can be streamlined with technology.

It’s likely that digital-only banks will be able to offer more competitive rates than traditional banks, while an increasingly tech-savvy population is likely to be more open to banks without a physical presence. According to a recent survey, 13% of people are ready for digital-only banking.

The developing world

The developing world is ripe for fintech innovation, notably because of just how differently money is moved thanks to the low rate of bank account ownership. One of the greatest uses so far is the facilitation of access to the lending power of the West.

The possibilities for fintech represent an earthquake akin to the birth of the printing press.

Services like Kiva and Zidisha enable global peer-to-peer landing. It means that you could stump up the cash so a Haitian pharmacist could stock water purifiers or a Burkinabé farmer buy more hens for his farm. This means, for example, that a Kenyan with no bank account can raise funds and receive them through M-PESA, a mobile money system.

It’s an incredible example of how fintech isn’t just about enabling financial institutions to drive efficiencies and improved customer experience, but how it can help people who desperately need access to capital get it quickly and easily and in a way that keeps both parties happy.

The possibilities for fintech represent an earthquake akin to the birth of the printing press. Microtransactional mobile apps can help balance out some of the world’s wealth disparities and redistribute some of the West’s wealth into the pockets of the developing nations. Fintech might not just be the next digital gold rush but an agent for revolutionary change.

Sign up to our newsletter for free

 

Don’t just like this article – share it!

 

Image courtesy of Benjamin Child





There are no comments

Add yours

x
freshmail.com powered your email marketing