Technology is the great disrupter – it changes the way we think, lives, work, and play. And while digital technology grows in leaps and bounds across all industries, digital finance technology has seen some of the most unprecedented explosive growth. As technology improves, so do the services and innovations offered to clients, which is excellent news!
Opportunities Abound
Financial technology solutions, also known as digital finance, or fintech services for those who like a contraction, bring together the two most powerful industries in the world – digital technology and finance. The global fintech market is estimated to be worth around USD 7.3 trillion and is forecasted to grow at a compound annual rate of 26.87% in the post-Covid era.
The industry was already moving at breakneck speed, and while Covid-19 harmed many sectors, fintech wasn’t one of them. In fact, the contactless, digitized and convenient nature of many fintech solutions was a perfect match for Codid-19 lockdowns and restrictions.
As the global economy moves from “respond” to “recover,” new opportunities arise for fintech companies. Financial technology solutions are becoming increasingly popular, putting the sector in the best position for growth and expansion.
Spotlight on the User Experience
At the heart of fintech, a boom is one vital concept – the user experience (UX). It’s all about creating financial technology solutions that improve people’s lives.
Better could mean more accessible, better could mean timesaving, better could mean safer. Better in the digital finance technology sector also often means simpler. User-friendly platforms and apps are the name of the game. No frills, no fuss, just access to financial solutions in a straightforward, safe and transparent package right in the palm of the user’s hand.
Due to the market saturation and fintech services providers popping up everywhere, companies are also trying to use UX improvements as a competitive advantage. The app or platform with the least glitches and most effortless user interface will usually be the most successful. This also places great emphasis on fintech software development and how well software engineers can shape the UX in the most straightforward and most convenient ways.
The Fintech Big Three
While there are way too many fintech solutions and technologies to rattle off in the space of one article, it is important to highlight what are arguably the three fastest-growing fintech services sectors.
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Crowdfunding Platforms
Kickstarter, Patreon, GoFundMe and others are leading the move away from traditional financial solutions by giving people a platform to control their fundraising and support that which is dear to them.
These platforms have severely disrupted traditional lending models such as bank loans and approaching investment companies, and they continue to show strong growth.
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Blockchain and Crypto
Ah yes, fintech’s most favored sons! Blockchain technology and Cryptocurrency are prime examples of fintech. Crypto has revolutionized the financial world and assumed a place in the mainstream in a very short space of time.
Crypto plays a significant role in the massive growth of fintech services and products, many of which are built solely with crypto solutions in mind. It is also a fintech concept and epitomizes the paperless, contactless, decentralized, and peer-reviewed ethos at the heart of many fintech services.
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Mobile Payments
Mobile payments are by far the biggest of the fintech sectors. It seems as if everyone has opted into this technology, with banking and financial apps on smartphones leading the way.
However, what started with mobile banking apps has moved into the realm of Near Field Communication, biometrics, and mobile wallets.
Fintech services are moving along at an incredible speed and are leading the digital finance technology race and, in many ways, the digital technology race. Significantly, businesses of all sizes realize the importance of offering their current and potential customers the best that fintech offers. And while this might be a bit daunting to consider as an in-sourced service, global consultancy entities like Star include financial services technology consulting as part of their service offering.
