Combining cutting-edge technologies with the rapidly evolving finance space, the FinTech revolution is transforming the way we communicate, interact with businesses, and access financial support.

But as international markets tap into next-generation solutions, is FinTech really driving a new era of financial services?

WHAT IS FINTECH?

Short for ‘Financial Tech’, FinTech firms are using the power of technology to provide financial services. Recognised for innovating a multitude of industries, namely banking, payments, investments, infrastructure, and insurance, FinTech companies are centred on bringing next-generation solutions to end-users, shaking up traditional consumer habits.

With a vast range of benefits, from enhanced security, increased accessibility, and same-day lending to lower costs due to the absence of brick-and-mortar locations, the FinTech realm is playing a vital role in digitalisation. Putting automated solutions at their customer’s fingertips, FinTech startups are standing toe-to-toe with some of the globe’s leading financial powerhouses.

DEPOSIT AND LENDING 

Met with a multitude of cutting-edge FinTech firms, the deposit and lending industry has seen a complete transformation amid the FinTech boom. Without the need for deposits, peer-to-peer (P2P) lending gives individuals the opportunity to earn interest, while offering faster approvals, better perks, and lower/ no fees to borrowers. From Acredius, offering business loans through crowdfunding, through to Lendity, a FinTech firm promising to ‘unlock value in Private Debt’, matching investors seeking better returns with borrowers seeking lower fees is morphing the way we access loans.

DISRUPTING MARKETS

While FinTech firms have spearheaded history-making marketing campaigns, they are undoubtedly innovating the way consumers interact with financial services. With an undeniable sense of one-upmanship, where technologies are becoming safer, faster, and smarter at record speeds, we are seeing key FinTech players weave artificial intelligence, blockchain, and cloud computing features through everyday solutions – a technology breakthrough.

While the sense of ‘newness’ presents obstacles to consumer trust, customer habits, and security provisions, FinTech is changing the financial landscape as we know it, offering an innovative alternative to traditional solutions. Shaping consumer habits, where on-the-go digital wallets replace physical cards, hassle-free digital banking outshines costly banks, and peer-to-peer lending redefines conventional loans, it’s no surprise that 90% of financial services fear losing revenue to FinTech firms.

Seeing a year-on-year growth of 25%, the FinTech boom is moulding every financial vertical, from personal finance, lending, and billing, to wealth management, money transfers, and insurance.