Do you have an idea what FinTech industry is actually about? What is its real potential? And are there lots of business opportunities? In recent years, FinTech has been widely discussed in numerous business events and government meetings all over the world. It is also one of the leading IT fields bringing innovations to the banking sector and to the whole social system in general.
In a brief, FinTech has been known as a business field dealing with the development of software that automates financial services. Traditionally, startups have been those enterprises bringing revolutionary changes to established banking processes and other services provided by financial organizations. PayPal and Stripe can be considered the best examples of huge FinTech companies that grew from startups and whose payment services are now actively used by all-profile users.
Recently, the Accenture FinTech Innovation Lab has given a new definition to the FinTech area by identifying its main working fields, which are the following: data analytics, risk management, operational technologies, predictive modeling, crowdfunding and P2P lending. With this long list of specific fields, FinTech appears to be a more diversified business area, going far beyond banking software development. Moreover, there is a new global trend of promoting cashless transactions supported by mobile and contactless payments. This is all about new technologies being born as a result of cooperation between credit card providers and tech companies. Interestingly, tech companies often attract startups when they find out about a new technology engineered by young entrepreneurs. Thus, Google acquired Softcard project’s technology and integrated it into Google Wallet service this year. Needless to say, financial organizations themselves are constantly in search of new solutions: many of them finance incubators in order to encourage young talents to come up with some new FinTech products.
Cryptocurrency is one of the most discussed FinTech areas today, which became popular thanks to bitcoin. From country to country authorities try to solve governance and system issues concerned with the use of bitcoin alongside with or instead of traditional currencies. No matter how long it will take to solve all those challenges, cryptocurrency is worth watching as a very promising innovation field.
Nowadays, it is essential to encourage a full-power development of FinTech not only by creating job places in relevant fields (data analysts, project developers, security consultants etc.) but also by investing in FinTech startups. Those countries, which manage to build a good infrastructure for the FinTech sector, may soon become world innovation leaders.
You may sign up our monthly newsletter to receive updates or news from our team.