5 Things You Didn’t Know About Fintech Industry!07th January 2023
Fintech is any financial technology that empowers consumers and businesses with innovative solutions to simplify their finances. The term ‘Fintech’ has become increasingly popular since 2017 due to its relevance in terms of innovation and disruption in the financial services sector. The fintech industry has started to take off in recent years thanks to the increased adoption of smartphones and internet connectivity across the world, which has made it easier for people to use digital banking services or apps on their mobile devices. Below are the 5 things you didn’t know about Fintech Industry:
A 2020 study by the Society for Human Resource Management and Willis Towers Watson stated that “85 percent of jobs that will exist in 2030 have not been invented yet.” This shows that change will always be around, and it may not necessarily be a bad thing.
- Fastest Growing Industry
- Impacting All Industries
- Disrupting Traditional Banking System
- Fintech Investments are Rising Exponentially
- Helping Lift Poverty
The fintech industry is one of the fastest-growing industries in the world today. It’s expected that the market size of fintech will grow from USD 1.7 trillion to USD 5.7 trillion by 2023.
The recent growth of this industry has attracted many investors and entrepreneurs who want to get involved with this sector. However, it can be quite tricky for those who are new to this concept.
Fintech will have a major impact on all industries with an obvious impact on the financial services. Financial institutions are looking at new ways to offer customers better products and services while reducing costs through automation and new technologies like artificial intelligence (AI), the Internet of Things (IoT) etc, which are the main base of most of the businesses.
While we were all forced to work remotely during the global pandemic, work flexibility isn’t new, and it has, in fact, been around for quite some time now.
The traditional banking industry is facing a major threat from fintech companies, which have disrupted the market with their innovative offerings. While many traditional banks are fighting back and making attempts to regain the lost ground, they are also trying to keep up with changing consumer preferences.
The banking sector is undergoing a major transformation due to the emergence of new players in the market. Traditional banks are competing with new entrants into the marketplace including digital banks, online lenders and payment systems providers like Paytm India Pvt Ltd and Google Pay India Pvt Ltd among others.
The fintech industry has been growing rapidly in recent years. People are investing a lot in it and the number of new businesses is increasing. The fintech market is expected to reach $1 trillion by 2023, according to MarketsandMarkets' report.
Fintech companies provide various products and services including loans, insurance, investment analysis, peer-to-peer lending and many other financial services. Fintech companies are setting up offices around the world to expand their operations. They are also developing more sophisticated technology so that they can serve more customers.
Fintech has given many people in developing countries financial freedom. They now own mobile phones, computers and a bank account. This means they can make payments, save money and access loans on their terms. It also means that they can use their phones for banking services without having to pay high fees for transactions.
Fintech is also helping governments bring down corruption levels by providing safe banking services to their citizens at an affordable price.
Nowadays, tech is playing a substantial role in the financial sector, generating lots of startups and new ways of thinking about finance that could disrupt the industry. The banking industry is no longer the same, companies like Google and Meta are getting involved into finance market and this has led to more agile thinking in terms of payments. As the Fintech industry grows, it is high time that we too start investing in financial firms or banks to get immense benefits from it. However, one should keep in mind the risks involved and be thoughtful before investing in it.