The advancement of technology keeps disrupting many industries and the financial industry is not exempted. The word “Fintech” is a combination of “Finance” and “technology”. The financial industry before now was majorly traditional. The introduction of digital technology, mobile platforms, analytics, and many more have been proven to be more effective in the long run.
Asides from the media buzz and the ‘youthfulness’ in FinTech, Fintech has also proven to be faster, easier, and more accessible. Even at this, a significant percentage of consumers are still very skeptical about trusting providers to manage deposits, investments, loans, and even retirement plans. This is a challenge most Fintech organizations go through.
Whether we accept all that FinTech is, the many innovations surrounding it would not be stopping anytime soon. Fintech has also managed to place its ground on segments neglected by traditional banking. It originally offers a solution to consumers who want a certain thing but cannot get it. For example, Loans. They also provide personal finance management( the likes of Cowrywise, Piggyvest, and ALAT).
The future of FinTech poses a threat to traditional banking and with the introduction of blockchain, cognitive computing, digital currencies, and the likes, traditional banking might have to go through a lot of ‘assurance’ to stay sane. One thing you should know is, no matter how skeptical a person is about Fintech, it is sure to take over the finance industry in the coming years.
If you ever need to consider a career in the financial industry, you might have to look for a problem in consumer banking and think of a way to solve it digitally.
Written by Oluwatosin Omolale.