Fintech companies have played an important role in the global financial system, generating structural changes in society, especially in creating high-quality financial services; these changes facilitate the activities of the financial and banking system end-users, improving their quality of life considerably.
Talking about digital transformation
The internet and social networks have generated new ways of relating and communicating. The processes must be evolutionary to take advantage of the variety of benefits that the same digital transformation brings, especially in terms of efficiency, value and positioning; digital transformation means not only incorporating technologies into processes; it also comprises incorporating a “new way of thinking” that aims to improve the value offer, competitiveness, and productivity of companies in the banking and financial sector.
The new generations, an important reason to seek change
Traditional banking must constantly seek new ways to make its business more attractive to its customers since as time passes, new generations demand simple, easy, fast, and less cumbersome processes. For example, in the case of older adults, they may not notice the changes in an online banking platform; however, in the case of younger users, they notice the difference in the performance and versatility of said online platforms, as they are more used to interacting with other social platforms. It is common to see young people who want their banking or financial platform to be “as fast” as their favorite social network, this means that companies in the banking and financial sector have to constantly update themselves, not only to adapt to external changes (pandemic, new technologies, etc.) but to face generational changes.
ABCD trends and financing
Trends are changing the banking and financial sector (pandemic and other external factors) and have allowed new products and services. Fintech and cryptocurrencies are a sample of this since they are part of the ABCD of technologies A: artificial intelligence and automated learning, B: blockchain and distributed ledger technologies, C: cloud computing and cryptocurrencies, and D: digital data analysis.
It is important to note that Fintech companies are in the eye of many large companies and investors, as they trust in their present and future development; for example, Fintech companies in the first quarter of 2021 managed to raise around 2.9 billion USD in the United Kingdom, which means an increase of 300% compared to the same time period in 2020.
What do you think about this topic? Do you think Fintech companies are really important today?
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