The financial services industry has witnessed remarkable technology-driven changes over the past few years. Many financial institutions look to IT organizations for game-changing innovation, to ensure that their institutions are well-positioned to lead and succeed in the future. Meanwhile, FinTech start-ups are tapping into established markets, leading the game with user-friendly solutions.
The technology responsible for driving the FinTech revolution is Blockchain. Blockchain has moved from a notebook sketch to a widely-accepted technology in very little time — lesser than the time it took for the internet to be accepted as a standard tool. Technology-led change is omnipresent and it is hard for any financial institution to escape it, thus the adoption of FinTech blockchain development services is inevitable.
As more FinTech solutions evolve, every industry needs to adapt or else be phased out. As we enter the year 2020, the best approach for entrepreneurs and financial institutions to move forward is to comprehend FinTech trends to deliver solutions that potential customers are seeking.
Minimized Traditional Institutions
The various financial business elements — such as insurance, payroll and securities — which were earlier handled manually are rapidly being automated. The wave of online-only banking eliminates the cost of brick-and-mortar buildings and provides customers with benefits like low fees and higher returns.
Besides, the regulation process has been disrupted by technology-driven innovation. RegTech solutions like blockchain-based KYC are poised to combat illegitimate practices like identity theft and anti-money laundering. While some companies have already partnered with FinTech blockchain solutions provider to roll out blockchain-led KYC solutions, we are sure to witness a remarkable increase in the number of such solutions in 2020.
The payment process evolved — from people using cheques and physical wallets to switching to smart phone apps for payments. Mobile phones also served the unbanked, which include the people without credit cards or bank accounts.
All the while, B2B payments involving FinTech have lately picked up the pace. Business payments are full of complexity, manual processes and paper cheques. FinTech solutions, on the contrary, have the potential to automate, simplify and accelerate the entire process.
Earlier, people relied on banks for business payments, but now the consumers are turning to tech companies that provide better offerings, and businesses are anticipated to follow the same trend.
The traditional lending process is intimidating and it can be hard to get the credit. Furthermore, the banks have tightened their lending rules post the financial crisis. This left the playing field open for FinTech companies to harness advanced technologies and capitalize on the opportunities to create innovative finance options for the masses.
The same trend of innovative solutions can be seen in the B2B world. Blockchain-driven lending platforms are gaining popularity among individuals and are anticipated to gain acceptance for B2B payments, too.
FinTech and Bank Fusion
FinTech companies have revolutionized financial services — from payments to the mortgage. They have transformed conventional markets by combining cutting-edge technologies and new business models. However, it cannot be overlooked that many FinTech companies lack industry knowledge, brand reputation, infrastructure and customer base to grow whereas traditional players are backed by all of these. This is why FinTech companies are better together than they are individual.
Banks are following the build, buy and partner approach, and we will witness more banks partner with FinTech companies in the coming year. The partnerships like these will fuel the future of payments transformation.
From enhanced consumer experience to more secure, transparent and quick transactions — each of these trends is a game-changer. They have the potential to transform the payments industry.
The future holds great opportunities for FinTech companies, banks and new entrants. Winners will be those who do not wait for the change to happen but instead capture the first-mover advantage by creating new business strategies and operating models.
If you are seeking for a reliable FinTech blockchain solutions provider to capitalize on the opportunities offered by the FinTech ecosystem, we can help. We harness our design-thinking-driven process to evaluate blockchain opportunities and implement the solution. We offer comprehensive solutions — from blockchain-based KYC to blockchain-led P2P lending platform — to help you take the lead and fuel your business growth.