The Future is FinTech
You heard it here first! It’s official, the future is FinTech! Only problem is, does anyone actually know what FinTech is? Just like Blockchain, Crypto Currency and BitCoins – there’s lots of buzz about this subject, but in reality – aside from those working in FinTech – does anyone actually undestand what it is?
As someone who works in the FinTech industry, i can personally vouch for the benefits we’ll all gain as we all further embrace FinTech. Let me give you a brief understanding of FinTech.
What is FinTech?
FinTech as a word is literally a mash-up of ‘Financial’ & ‘Technology’, and it denotes the significant advances the Finance sector has made, as a result of our ever increasing use of Technology. Indeed, with Technology now at the core of Finance, we can do things that have previously been impossible to do. For example, by the end of 2017, the UK Banks are mandated to open their databases of ‘customer data’ to licenced 3rd parties – who are typically young, agile, (FinTech) start-ups – who then take the data, and make it easier for consumers to use ‘their own financial data’ to their advantage.
The benefits range from the simplistic to the complex, and everything in-between. For example: –
When Phone Banking arrived, we visited branches less. When Internet Banking came along, we no longer needed to speak to someone on the phone. Let’s fast forward a little… now that we have FinTech occcuring all around us, the notion of leaving your favourite Social Media channel to visit your online bank, having to login, do your banking, before returning to your Social Media channel! Instead, as AISP’s (Account Information Service Providers) become more established – we’ll be able to view and undertake our banking tasks, directly from our preferred Social network. Think of the time savings and conveniencce.
Furthermore, because our ‘financial data’ is now open – we can use our data to ‘show financial retailers’ that we’re really good potential customers – “Look at my Bank Data”, we can say “i’m a really responsible financial consumer. I’m good for the credit you’re offering me!”. Moreover, because this data will be open and true, we’ll see more trends towards ‘reverse auction’, as vendors bid to be your preferred supplier (as they will be able to see you’re a great potential customer!).
There are many benefits of FinTech to consumers, with the above just being two basic exmaples. But where is this ‘financial revolution’ taking place?
FinTech Hot Spots
The reality is that FinTech is a global phenonoman. But, as you would expect, those nations with large Financial Sectors have embraced it quicker than most. Here’s a summary of what’s happening and where.
– California comes out on top, with their total market share accumulating £4.7 billion, with a total of 74,000 employers and a revenue of over £3.6 billion.
– The UK have also found a lot of success through FinTech, with their market share being around £6.6 billion, with over 61,000 employers and £524 million worth of revenue.
– China, India, Germany and Ireland are all performing extremely well, with the opportunity of Financial growth being a huge driver for these territories.
Who’s Regulating the Revolution
Fortunately this brave new world of FinTech does have some good old fashioned checks and balances. The FCA compliance specialists have kept close attention to the change within FinTech within the last few years and this regulator will ensure that FinTech can continue to blossom for all.