The rapid innovation in the financial technology, or FinTech vertical, shows no signs of slowing down. In the past year, global investments in FinTech increased 11 percent to a staggering 17.4 billion USD.
While the term was originally coined to describe technological improvements in employee and customer-facing bank systems, it’s evolved significantly in recent years. Today, there are many different types of FinTech, including digital and mobile payments, crypto currencies, investment, corporate finance, big data, financial platforms, and more.
As big data, the Internet of Things (IoT), artificial intelligence, and other technologies are increasingly applied to money tech, the FinTech space continues to revolutionize the way organizations and people interact with money.
The rapid change and growth in the FinTech space matters to everyone, including corporate leadership, entrepreneurs, and consumers.
Read on to discover five mind-blowing facts about FinTech in 2017 and why they’re worth noticing.
1. The Majority of Executives Are Worried
A recent report from Pricewaterhouse Cooper (PwC) revealed that a staggering 80 percent of executives globally feel their business is at risk due to the rate of innovation in the FinTech sphere.
The areas of business perceived as most at-risk are payments, transferring funds, and personal finance. This says that organizations see themselves at a point where they need to choose between adopting new financial technology innovations or losing customers to disruptive start-ups.
For companies of all sizes, the message here is clear: It may be time to adapt.
Today’s consumer-facing apps make it easier than ever for customers to pay and manage their finances. Providing a similar user-friendly and mobile-optimized experience could be an expectation.
2. Governments Are Getting Behind FinTech
Per KPMG’s recent report on the pulse of FinTech, governments worldwide are beginning to show visible support for innovation in financial technology. The UK, Australia, Singapore, Malaysia, and Thailand have all debuted sandbox programs for regulatory innovation.
Compliance with financial regulations can be costly and time-consuming for today’s organizations. However, this visible support for innovation in regulatory tech could reveal that the age of compliance exhaustion will be coming to an end.
3. Blockchain Is Predicted to Take Over in 2017
If you haven’t heard of Blockchain, dubbed the “invisible technology that’s taking over the world,” you’re in the majority. This “distributed ledger” technology has the potential to act as a centralized repository for all transactions, legal agreements, human resources, and data exchange.
While Blockchain could revolutionize corporate finance, many predict it could one day soon change consumer technology as we know it.
4. 30 Percent of Consumers Love FinTech
While many consumers are resistant to new methods of payment and personal finance, a large segment of the population are early adopters of FinTech.
PwC reports that 30 percent of today’s customers plan to increase their use of nontraditional ways of payments, fund transfers, finance, loans, and saving. By understanding the category your customers fall into, firms can provide the right types of traditional or nontraditional finance tools.
5. Robot Bank Tellers May Not Be a Far-off Fantasy
Per KPMG research, artificial intelligence is projected to be a driving trend in FinTech innovation in 2017, with large banks and other firms actively exploring ways that artificial intelligence could reduce costs and improve client satisfaction.
While a future where robots effectively answer customer queries may seem like a dream, artificial intelligence innovation could revolutionize the way we interact with financial tools.
Conclusion: Widespread Technological Innovation Ahead
If you’ve ever used a solution like Square or Google Wallet, you’re already part of the FinTech revolution.
Firms in the finance and insurance industries aren’t the only ones who should pay attention. The FinTech movement stands to change the way organizations in all industries interact with customers, and the message is clear — adopting customer-friendly, innovative tech could be key to win.
Chris Nekvinda Ph.D. from Cannon Financial shares the six factors forcing the financial services sphere to change its approach to learning and development.
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