15 Jul ASK A FINTECH FUTURIST: WHAT’S THE FUTURE OF BANKING AND FINANCE?
Per leading fintech futurists and keynote speakers, the space represents one of today’s hottest growth areas. If you’re unfamiliar, the term is short for financial technology and a wide-ranging catchphrase that can refer to any kind of technology or innovation used to support or enable banking and financial services. We spoke with several top fintech futurists and keynote speakers to put together a taxonomy of common forms.
Mobile Payments: Allow users to make financial transactions digitally, typically through their mobile devices. Examples include Venmo, Apple Pay, and Google Wallet.
Peer-to-Peer (P2P) Lending Platforms: Connect lenders and borrowers directly, bypassing traditional banking institutions. Services often offer lower rates and faster loan processes.
Crowdfunding Platforms: Enable entrepreneurs to raise funds for their projects or businesses from a large number of people, typically via the internet. Think Kickstarter and Indiegogo.
Robo-Advisors: Use algorithms to offer investment advice or automate trading strategies, typically for a lower cost than a traditional human advisor.
InsurTech: Technology aimed at the insurance industry. Could be platforms to purchase insurance, apps to file claims, or even artificial intelligence (AI) for risk assessment.
Blockchain and Cryptocurrencies: A type of distributed ledger technology that allows secure, transparent transactions, and cryptocurrencies are digital or virtual currencies that use cryptography for security. Bitcoin and Ethereum are two well-known examples of cryptocurrencies.
RegTech: Refers to technology that helps companies comply with regulations more efficiently and inexpensively. Think solutions for risk management, regulatory reporting, identity management and control, compliance, and transaction monitoring.
NeoBanks or Digital Banks: These are essentially banks without any physical branch networks that offer banking services online or via mobile apps. Chime, anyone?
Personal Finance Apps: Help individuals manage their finances, track spending, save money, invest, and make better financial decisions. Mint, YNAB (You Need A Budget), and Acorns are examples of personal finance apps.
Payment Gateways and Payment Processors: Services that facilitate transactions and the processing of all types of electronic payment methods. By way of illustration, picture firms like Stripe, PayPal, and Square.
Each of these areas is large and diverse, with many companies providing unique takes on each fintech category. Like fintech futurists and keynote speakers have noted, the rapid evolution of this sector continues to transform the financial landscape worldwide.