The Landscape of Fintech Dominating Financial Sectors
One of the most dominating in modern financial services and sectors technology is FinTech. Listed below is its top performing FinTech sectors.
The traditional financial institution usually issues business or personal loans in the past causing huge financial overheads that cause lenders to suffer. The sector immediately dried up after the financial crisis 2007 and 2008. This is because lending greatly contributed the housing crisis. This made space for a large host of alternative lending businesses, which use technology to cut out the middleman and enable peer to peer lending. The bank’s reluctance to lend combined with greater demand returns became one of the main reasons why lending businesses appeared in the Fintech sector
To push the economy to spend instead of save, central banks worldwide organized monetary rules. They set extremely low rates of interest. Businesses and individuals are finding more places where they could invest their money with rewards. Delivering online investment platforms is a huge role by Fintech. Nutmeg, which focuses on investment management and Crowdcube, for crowdfunding are examples of their platforms. The combination of technology and finance seems inviting for modern investors. Businesses serve them like OFF3R, which is an investment market alternative.
Money transfer between accounts can be pretty expensive especially if it involves foreign exchanges. With globalization, easy and quick payments for money transfer have increased.
It is fundamental for many businesses to be able to make international payments and transfer money easily. Solutions like Transferwise enable transferring of money across borders while Stripe allows e-commerce providers easy payment collection.
This is one of the most talked topics in the sector. There is a distance between insurance and finance. PWC’s Insurance reported that customer expectations are the enablers for this sector. Fintech continues to challenge the outdated financial system.
What Does the Future Hold?
The traditional approach to the financial world was once considered to be stable, but they consistently fail. This is what pushes entrepreneurs to go out of their way to disrupt the foundations of the financial industry. The investment and real estate sectors will notice the disruption. It will be challenging because of these sectors dependency on technology. The size of various Fintech sectors will depend on certain factors. Investment may be in demand in deflation periods while spending might be promoted during inflation. The size of some sectors will be reflecting what’s happening in the economy.