In the digital economy, businesses must innovate to thrive. The finance industry is no exception. As McKinsey research reveals, financial technology (or fintech) can help firms increase efficiency and reduce costs. Fintech can also enable new services that offer consumers greater convenience and choice.
A number of technologies are driving the fintech revolution. Cloud computing, for example, offers a cost-efficient way to host data and applications in the digital world. It can also increase the speed and scalability of financial-services companies’ operations. Open-source software and serverless architecture are other important enabling technologies.
Fintech is transforming the way people interact with money and banks. It’s a multifaceted phenomenon that includes a wide variety of products and services, from online banking to robo-advisors to international money transfers.
Many of these innovations are designed to disrupt or displace established financial services providers. They may be more nimble, offer faster service or serve a different segment of the population. They can even cut out the middleman, such as Affirm, a company that lets shoppers secure immediate short-term credit for online purchases without using traditional credit cards.
As the fintech revolution continues to evolve, the future looks bright. But there’s also room for caution. The global financial crisis of 2008 revealed a lack of trust in established institutions. This created an opportunity for start-ups to fill the void, and it launched a new era of fintech innovation. It’s an era that includes cryptocurrencies like bitcoin, distributed ledger technology such as blockchain, and apps such as neobanks, which allow consumers to manage all of their finances through one platform. https://greyjournal.net/hustle/work-tech/navigating-the-new-challenges-for-fintech-startups-in-a-changing-economic-landscape/