There’s a revolution underway in the Fintech space.
When people think about the typical Fintech company, they often picture a scrappy Silicon Valley startup with big ideas about disrupting the world of banking, lending and payments. They picture a company with a lot of potential but limited impact. That’s no longer the case.
The industry has grown up in a big way, and technology companies have become heavy hitters in the financial services space.
CALL IT FINTECH 2.0
And the industry continues to grow – the adoption of Fintech services worldwide nearly doubled between 2017 and 2019, according to EY’s Global Fintech Adoption Index 2019. What’s more, 96 percent of consumers were aware of at least one Fintech service to transfer money and make payments.
There are thousands of Fintech companies in operation today, and more players are entering the space all the time. This explosion has been driven by a fundamental shift in the overall financial services industry. In the past, an individual’s finances were routed through just a select set of financial institutions. Industry growth was limited to those financial institutions competing for a greater share of the pie. Since its inception after the financial collapse in 2008, these visionary, disruptive companies have altered the way we interact with our money. Today the rate of introduction of fast-moving technology along with tremendous amounts of available data are enabling innovations that are redefining how people and businesses manage their finances. It’s led to an emergence of new products and services at a rate that many have come to define as the Fintech revolution.
EXPANDING POSSIBILITIES WITH NEW FINTECH PLAYERS
The Fintech revolution is no longer limited to the financial services sector. From the smallest startup to the world’s largest companies, organizations are finding new ways to infuse Fintech offerings into existing customer touchpoints. Online retail behemoths like Amazon now offer on-demand financing at the time of the sale rather than outsourcing it to third-party lenders. In-app purchases are facilitated through digital payment providers like Venmo, allowing consumers to complete their transaction without ever leaving the app. Car dealerships and other big-ticket sellers text insurance options to consumers at the time of the sale.
Today’s consumers aren’t just looking beyond brick-and-mortar banking locations - they’re looking beyond banking institutions altogether.
Fintech 2.0 is changing how a range of people and businesses interact with their finances. It’s creating new revenue possibilities and driving new demand for Fintech expertise and experience at organizations in a growing number of industries. This report details several Fintech categories worth keeping a close eye on as well as key considerations for finding an innovative and impactful Fintech team to support your organization and bring it into the next generation of the Fintech revolution.