FinTech is a rapidly growing field in finance. It is the “spurring block” behind traditional financial services and “the new wave of change.” According to Fortune Magazine, ” SAP is the biggest beneficiary of the new tech movement. SAP’s network infrastructure, software and systems allow for the collection and processing of customer data with little IT effort.” This statement is quite bold and is reflective of fintech innovation.
As competition increases and customer expectations increase, financial service providers will look to new sources for innovation. The recent merger of Oracle and Sun has changed the landscape of the entire industry and created a larger player in the already crowded sector. According to Markets, “The new hybrid technologies may further fuel up IT spending in the coming quarters as companies look to save costs and maximize productivity.” In addition, analysts at Goldman Sachs have stated that fintech will continue to accelerate, given the recent tax Breaks.
As mentioned earlier there are a variety of fintech solutions available. Some financial services firms are using innovation strategies to provide more personalized customer service and support. Other financial technology companies use their hardware and software to create better solutions for the client. There are also a number of financial advice companies that offer online financial advice or have an online platform for clients to seek advice. As competition increases and client expectations increase, fintech is likely to become even more important in the future.
One of the fastest growing trends in financial services is mobile banking. Almost every person owns a smartphone and this device is an essential part of the overall financial technology industry. A smartphone provides access to banking, shopping and social media. This type of fintech innovation is particularly beneficial to those who travel extensively and do not want to carry bulky devices. Another fintech innovation that has been very popular recently is online insurance quotes. Clients can instantly receive information about their insurance and determine which company is the best for them.
Asset Management is another hot topic. In the next decade the majority of workers in financial services will be in a position to manage their own assets. Asset management is an area that is not being left behind. Many companies are already providing online asset management systems that will allow consumers to view their investments, monitor their overall spending and budgeting and track their personal information.
While many entrepreneurs are seeking companies leveraging innovative technologies for asset management there are also a number of professionals in the financial services industry who wish to change the way they do business. According to a recently published report by Frost & Sullivan Research, there are six main areas where fintech is likely to impact the financial services industry within the next seven years. These areas include Digital Insurance and Real Estate, Financial Services, Travel, Communication, Workforce Planning and Education.
Digital Insurance and Real Estate seems to be the area where entrepreneurs developing new enterprise technologies are focusing the most attention. Fintech has developed digital technologies that make the process of underwriting more efficient and that have increased the speed at which property appraisals can be completed. This has increased the demand for appraisers and homeowners alike. Appraisal software and the associated processes have also greatly reduced the time that agents must spend on filling out paperwork. While these technologies are still relatively new, they are likely to play a large role in the way that the financial services industry handles risk.
The growth-stage technology companies are focusing more on Internet-based banking solutions, especially mobile banking. These innovative technologies have greatly decreased the time it takes to conduct banking activities, and have created a level of connectivity that was previously unseen. Banking officials claim that this form of technology has played a large role in the lower level of delinquency rates seen in the banking sector. Because of this, traditional banks have been scrambling to figure out how to keep up with these new, more convenient, and faster forms of banking.