Millennials most likely don’t think twice before sending their friend that $5 they owe them via Paypal or one of the myriads of digital payment methods out there.
The fact is that having access to finances in all forms at our fingertips due to technology is changing the world. These platforms are part of what makes up Fintech.
So what is Fintech?
Fintech or Financial Technology is a term that is used to describe pretty much any kind of technology in the world of financial services.
This can be describing a business who delivers its financial services through a technology platform right through to the complex and ever evolving world of cryptocurrency (ie Bitcoin etc).
We hear the term Fintech used when speaking of companies that use tech (through mobile phones and internet) to connect people to their finances.
The standard example for this is veteran in the space – Paypal.
One of the things that have led to Fintech becoming a 2019 buzzword is the why around its growth in both customer awareness and use.
Most consumer Fintech platforms focus on making it easier for their users to see, access (spend) or manage their finances.
The market isn’t only interested in financial technology for the payment platforms to sell on Ebay or pay for the Uber either.
Fintech investment is now big business with the index outperforming many others through 2018 and 2019.
With the growth in this space, 2018 alone saw the milestone of 20 Fintech unicorns (business that had started and now worth over $1 billion).
This means there are more financial technology unicorns than any other vertical in this space.
While all this is promising for the emergence, continued growth and sustainability of this space, Fintech isn’t an easy market.
Businesses really need to get ‘it’ right to get consumer uptake.
It is important to remember we are dealing with people’s money here.
Fast, easy and 100% secure is what we consumers are looking for in financial technology.