Why 2020 Will Be a Big Year for Fintech
If you have ever used PayPal or Venmo, you have participated in an industry that is growing rapidly without even being aware of it.
Fintech is a quickly evolving market that is continuing to change how banking and finances work every day. Short for financial technology, fintech uses technology to make financial transactions more efficient.
Companies that center upon fintech aim to provide financial support and services to individual consumers and businesses alike. Everyone can benefit from fintech, even the smallest start-ups! And because this industry is so crucial to small businesses and large, there is a real need to ensure companies in fintech don’t go through their own crisis. Which is why the need to protect the company from the sudden loss of an essential employee with a key person disability insurance or similar policies can act as a safety-net for these ventures.
However, not only starts-ups are reaping the benefits of fintech. Even existing financial institutions and major corporations are seeing how useful it can be.
2020 is going to see even more growth in the fintech industry, making it one of the industry’s biggest years yet! Check out some of the major reasons for the current expansion of fintech.
Changes in Banking Habits
In the modern world, everything tends to be about efficiency and convenience. The quicker we can complete a job well done, the better.
People have found that it is much easier to complete banking transactions using mobile and online banking than it is to head to a brick and mortar establishment. Waiting in ATM lines or talking to a teller can take longer than might be expected.
Besides, recent times have seen a rise in the number of businesses catering to their customers on online platforms. Entrepreneurs are looking for newer niches to build businesses and most of them cater to the digital world. To help their clientele with a myriad services via things like drop servicing efforts, companies outsource a number of tasks to freelancers or agencies around the world. It goes without saying that a majority of these service exchanges would entail online transactions rather than in-person payments.
Technology-based banking is so popular because of all the tasks that it enables right at a user’s fingertips. And at the heart of all digital banking is, of course, fintech.
Making service as important as banking so convenient has created a spike in the need for more companies to adapt. Consumers are at the heart of every company’s success, and since they are benefitting from fintech so much, it continues to be introduced into more businesses.
The changes in the ideal banking habits of many customers have helped fintech consistently rise. Banks are using it, individual companies are using it, and the average person has found a way to integrate fintech into their daily life.
Fintech Fills Financial Gaps
In order to start a business and make money, you have to have money. It is common for people seeking to start a new business venture to take out a loan.
If you do take out a loan, make sure that you will definitely have the resources to pay it back in time and that you take a loan out with a trustworthy lender or bank. If you take out a payday loan to pay for business expenses then you may need to start asking how does payday loan consolidation work if you’re unable to pay the lenders back.
At traditional establishments, it tends to be tough for small businesses to get the same financial resources as big wealthy corporations who have a history of good credit.
With fintech, financial resources are becoming more available to even the smallest companies that need a little boost to get started. Fintech startups are so helpful for any business requiring support.
Any company that is looking to step up their Fintech marketing efforts can start with this Fintech marketing guide from Digital Authority Partners.
Marketing your fintech business can only help it stand out in a growing industry. And now, with governments realizing how useful fintech is for helping keep the economy strong, previously tight restrictions are beginning to loosen.
More businesses have the resources they need to grow because fintech companies can provide them a new type of support.
Existing Banks are Benefitting
In many industries, it is common to see new developments replace the old ways rather than build off of them. That is not the case with the growth of fintech.
Instead of replacing existing banking institutions, fintech is actually helping people access them more efficiently.
The use of technology is making banks more accessible to everybody through their phones and computers. They can easily deposit checks, transfer funds, and manage bank accounts from home.
While there are individual fintech companies that are independent of existing banks, big banking names like Chase and Bank of America also have created their own mobile banking apps.
Fintech has allowed traditional banking services to get in on the action that will only continue to get bigger throughout 2020. There will always be a need for live banking even in a society so based in the tech world.
Software is Becoming More Secure
Keeping money safe is so important to everybody because we all work hard for it. When fintech first made an appearance on the market, people were apprehensive about its security.
As it has become more popular, fintech has developed new ways to keep the money of every user secure. For any company that uses fintech, using the right software is a necessity.
New developments in technology and the growth of existing software continue to keep customers using fintech services secure. Transactions can be made with faith that the money will go where it is meant to.
Technology like artificial intelligence and blockchain keep all financial transactions safe from outside interference.
It appears that 2020 will bring about even more security for the fintech industry, helping private companies protect their customers from theft or fraud. The software keeps becoming more advanced to ensure that everyone has the strongest protections.
Fintech is Recognized Globally
In order for the growth of an industry to take place, more people need to know about it. This holds true for fintech, which continues to rise in the ranks of popularity.
So much of the world’s population has heard of a fintech service or company, such as cryptocurrency, crypto trading bot software, or mobile banking. Not only do they just know it exists, but many people also use these services frequently.
Many countries have already seen a rapid increase in the use of fintech for personal and business purposes. Still, many more companies have yet to jump on the bandwagon.
As the fintech market continues to grow, it is likely that 2020 will bring more regions to participate in the industry.
Fintech is so convenient and cost-effective that the market will continue to grow, which will also provide a boost to the economy.
Technology continues to advance to make our lives easier in so many ways. Fintech is just one of many newer tech developments that will continue to have a lasting impact.
Keep watching fintech throughout 2020 to see how it will be used to further benefit the world. 2020 will be a big year for fintech!