Why fintech = frontrunner of innovation?
Fintech growth is off the charts. Since January 2020, the industry has seen a 337% increase in daily active users. And in our predictions for the 20 next hottest products, seven of those companies make the cut. What makes fintech the most innovative tech area?
Fintech is already implemented in all areas of our lives
It might be hard to believe, but many of the things that we now take for granted are actually the results of the fintech revolution. A good example is crowdfunding platforms like Kickstarter and Patreon. They allow you to reach international investors even if you have no connections in the business world. And that’s good news for everyone.
All the money transfers and payment platforms are fintech products and services.
For more about the fintech industry “from scratch” you can check out one of Moqod’s articles.
Another fintech company is the B9. It’s an app ‘by immigrants, for immigrants’ which is designed to provide an alternative for unbanked people, like first or second-generation immigrants. The B9 works in the U.S. and helps customers who are outside the traditional banking system get bank-grade services on excellent terms. The startup was so successful that it raised $5 million last year.
You can use an app to pay for any goods with a virtual card. Klarna allows you to split any purchase into four interest-free payments, both online or in-store. Moreover, you can avoid this hassle by trying the product and waiting for your money back if it doesn’t fit. This development allows you to have a 30-days gap for making up your mind.
Which key technologies drive fintech innovation?
Blockchain and cryptocurrency
Blockchain technologies are being adopted for making large payments safely and quickly. Smart contracts, zero-knowledge proof, and distributed data storage and exchange, which are all essential to current fintech innovations, are among the reasons that blockchain’s increasing technological value.
BlockFi is a platform that allows users to buy, sell, and earn cryptocurrencies. More than 1 million verified clients trust BlockFi — and the company is now valued at over $3 billion.
BTW, look at our interview with Pascal Marco Caversaccio, Blockchain consultant at Apps with love, to find out more about blockchain and the algorithms of its work.
The McKinsey Global Institute expects the cloud to contribute $1 trillion to the top 500 companies’ EBITDA by 2030. The cloud makes it possible to outsource the maintenance and development of applications, which increases efficiency. It lowers infrastructure cost efficiency by 29 percent and reduces downtime by 57 percent, which reduces technical violations by 26 percent.
Not only does business make extensive use of fintech. Customers all over the world use fintech for money transfers and payments. This category encompasses peer-to-peer money transfers, in-store mobile payments, and phone money transfers. There are also benefits for those who want to save money instead of spending them: for example, Revolut has made investing in stock our everyday routine.
Fintech has changed the way we manage and consume our finances. These disruptive innovations help us plan our costs, play the market, buy stocks, and many more. Even the traditional institutions are coming to peace with the fact that technology is winning over the financial sector. So, it seems that the only thing we can do is to be agile and use the long-term potential of financial technology.