Top 5 Innovations Brought Forth by Fintech

Top 5 Innovations Brought Forth by Fintech

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In the financial world, FinTech is considered to be the future, and once you acknowledge all the beneficial facets of modern financial solutions, you will be able to reach the same conclusion. Technological development has conquered various markets, domains and industries, and when it comes to payments and modern banking solutions, things seem to only go in the right direction. With new innovations appearing, it seems like the FinTech trend has had a powerful impact and continues to grow, facilitating convenient resources to both businesses and consumers. Among the numerous opportunities revolving around the subject, the following innovations seems to be the ones that have drawn most attention, and after learning a bit about each one, you will be able to understand why:

P2P financing

Peer to peer financing is one of the most powerful financing trends at the moment, the field of crowdfunding being presented with an impressive variety of products, new possibilities being brought to the table on the regular. Platforms that target this type of financing opportunity have given entrepreneurs the chance of bringing their niche products into the market by accessing financial backers, as well as interested customers – all with the help of the online environment. While P2P financing revolves mainly around crowdfunding, it has also facilitated P2P lending. Being similar to what traditional banking, this alternative involves capital allocation between parties with risk mitigation – interest rates varying depending on certain risks. Crowdfunding and FinTech have allowed numerous startups to bring their ideas to life while not having to worry about lack of funding. P2P financing and lending possibilities are becoming more appealing with each passing day, numerous more platforms focused on this matter appearing.

Digital only banks

With the rise of digital trends and tools across various industries, banks have started to direct their focus on bringing more convenience to their clientele range through web based and mobile access, functioning as multi-facet banking. However, while it’s normal for the big players in the industry to provide internet banking, nowadays, digital-only banks have made their way into the financial scene. Traditional branch networks have been completely cut out when it comes to this banking alternative. Services are being provided solely through online interfaces. Having the chance to function only in the online has helped in the reduction of costs, which automatically, benefits you – as a potential client- as well through lower service fees. Payments solutions become more advantageous, while charges are dropping down. You can visit this site to discover how these types of platform benefit businesses and consumers.

White label banking

Offering you a 360 degree view of your financial life, white labelling is the FinTech innovation that has enabled companies without access to regulatory infrastructure to provide you with financial services and solutions. Traditional banks function as a service provider for these companies, which create their products by utilizing that said bank’s core infrastructure. Some classify white labelling as an intermediate, a “borrower”, those offering this type of banking alternative giving access to innovative financial products, which are distributed to a targeted range of clientele. What’s particularly interesting about white labelling is the possibility it gives in building your own customized financial solutions. Your payment experiences can be designed exactly the way you think would function best for your situation, depending of course, on which company you choose to collaborate with. Sending and receiving funds has never been this easy before, and all thanks to the revolutionary financial experience FinTech has brought to the digital society.

Insurance telematics

Telematics seems to be the next big thing in the insurance industry. Telematics is a growing trend, referring to the technology that enables machine to machine communication mechanisms. Insurance premiums are now being calculated through this method, using self reported information. While in the past, the price of an auto insurance was not linked to how a said person driver, for example, this being the type of information rather inaccessible to the insurers, now, through telematics, a device is installed in your vehicle before you are able to purchase a premium insurance policy. Your premium is thus decided based on more accurate facts. This has financially supported insurance company against monetary losses due to the unfit distribution of insurance products to certain consumers.

Transferring value virtually – cryptocurrencies

Last but certainly not least, cryptocurrencies have made quite the impact on the financial market, being one of the most discussed topic when it comes to FinTech technologies and products. Bitcoin is no longer the only attention-drawing opportunity when it comes to transferring value virtually, numerous other products appearing since the cryptocurrency trend has taken such a powerful turn. Cryptocurrency developers (a number that increases with each passing day) are trying to create the most reliable, secure as well as affordable way of transferring value virtually, coming with other creative solutions as well. Blockchain technology is more promising than ever, and transactions with cryptocurrencies are peaking the interest of numerous consumers and businesses that want to simplify online payments as well as financial holdings. While some are still skeptical regarding the utility of cryptocurrencies, these remain an interesting and constantly growing trend in today’s digital age, some even claiming that in the future, traditional money will be replaced with this digital alternative completely.

It seems like financial technology has certainly revolutionized the industry, in various beneficial ways, bringing solution that both consumers and businesses have taken advantage of in numerous scenarios Things are prone to only get better, with innovations emerging on the regular in this department. These are the top 5 most promising technologies that have come to consumers’ attention due to what they bring to the table. From insurance telematics and P2P lending and financing, to digital only banking opportunities, there are impressively numerous tech trends that have conquered the financial industry, and their innovative nature explains why they have gained increased popularity in such a rapid manner. Traditional financial methods seem to be completely left behind in 2018, FinTech delivering more appealing, improved financial services in various sectors.