Even though it might seem like a phrase from a pitch, but “Fintech” is being coined as a shorthand in the business media for future trends in the financial industry starting from new technologies.
This however is somewhat imprecise. Fintech, by the book, refers to new technologies and the systems are developed to disrupt existing established financial systems.
Some of the trends we’ve noticed:
1. Automated financial advisors
The growing reliance on computer programs to generate answers might be felt already when talking to a financial advisor. Fintech will eliminate the middleman in this service area making it easier to receive good advices.
One example that’s about to launch is called Investify.
2. Predictive analyticw
AdviceRobo is called “the mother of all robo advisors” and is just one of a number of new ventures to provide analytic tools able to predict probabilities of bad debt, prepayments, lender outflow in order to able to determine potential frauds and credit risks.
Il Sun Yoo: “The ability to crunch more data, faster, will lead to improved financial health.”
3. Mobile Payments
Rima Perelmuter: “Headline statistics are that mobile banking and mobile commerce continue to grow.
Sixty-nine percent of mobile media users carried out a banking activity via mobile, while 66 percent have carried out some form of transaction.”
She also stated that: “Convenience and immediacy are the key drivers for the majority of developed markets, although there is no uniformity and no one size fits all.” Africa and Asia in particular are leading growth areas of mobile money, to the point where they have “leapfrogged established economies and [are] fast becoming the norm.”
4. Improving customer experience
Mobiles are the core of enriching the customer experience with device use for financial transaction, especially when noting the voice navigation and two-way videos.
As the Harvard Business Review mentioned, “Interactions with customers, and the customer experiences that result from those interactions are, for many businesses, the sole remaining frontier of competitive advantage.”
5. Social Trading
“Banks and investment firms were late arrivals to the social media scene, but now they’re leading the way,” says Kimberly Palmer in U.S. News & World Report.