Over the past few decades, insurers, financial service provider, and banks have been dominating the market share of the financial sector. However, these sectors are now facing a lot of pressure from other innovators who are providing services to the same consumers. These innovators have ended up opening up diverse and new opportunities for consumers and business. Fintech is a financial technology that has led to significant changes in various sectors of the economy such as business. As more people continue appreciating the advancement in technology both FinTech and future business are projected to continue growing at a very a high rate. Robo-advice providers, online money transfer, and crowdfunding platform services are some of the applications associated with fintech.
This technology has promoted retail banking thereby allowing customers to interact and explore the possibilities of the banking industry. With this technology, customers have a clear image or focus on mobile and digital banking services. It has greatly helped in solving the transformational challenges that have been facing the banking sector. With FinTech, the customers’ trust regarding the different services and solutions offered by banks has improved significantly. This is the main reason why Fintech has become one of the hottest “terms” in the financial and insurance sectors. This is good news for the business people.
Why do you need to use FinTech in your business?
This financial technology has been very beneficial for business people and investors. It has provided excellent and new opportunities for the investors. In the current business world, this is considered to be a great revolution. Individuals investing in different products and or direct investment companies have embraced this technology. Most companies are applying software to finance.
Challenges facing FinTech
There was a seminar that was organized in 2006 in Dublin by FinCoNet to discuss the consumer protections and the effects of technology on business. FinCoNet is one of the financial organizations or authorities responsible for protecting consumers when comes to financial matters. Most of its members are from the European Union. During this convention, the participants had an opportunity of exchanging their views on challenges and potential benefits related to fintechs. Some of the major challenges affecting this technology that were highlighted include the following.
- Abuse use of algorithms and data
- Financial exclusion of the vulnerable customers
- Regulatory loopholes
However, despite these challenges, most of the European policies and laws have been offering dedicated online courses to promote technology transfer and growth of businesses.