From crypto-currency to AI technology, it’s an exciting time to be in FinTech. If you do not know how fast this sector is growing, you might be missing a lot of opportunities. But do not worry, we got your back!
FinTech is one of the fastest-growing tech sectors, with companies innovating in almost every area of finance: from payments and loans to credit scoring and stock trading. Below, The Startup Club takes you on a journey to discover more.
FinTech is a portmanteau of the terms “finance” and “technology” and refers to any business that uses technology to enhance or automate financial services and processes. From mobile banking and insurance to crypto-currency and investment apps, FinTech has broad applications.
The FinTech industry is huge. Only the 41 VC-backed FinTech unicorns are worth a combined $154.1 billion. One major driving factor is that many traditional banks are adopters of the technology, actively investing in, acquiring or partnering with FinTech startups. Those FinTech companies, in turn, integrate their technologies - AI, block chain and data science - into traditional financial sectors to make them safer, faster and more efficient.
Let’s take a look at how the industry is both disrupting and enhancing some areas of finance.
• Banking
Mobile banking is a large part of the FinTech industry. In the world of personal finance, consumers have increasingly demanded easy digital access to their bank accounts, especially on a mobile device. Most major banks now offer some kind of mobile banking feature, especially with the rise of neo-banks. Neo-banks are essentially banks without any physical branch locations, serving customers with checking, savings, payment services and loans on a completely mobile and digital infrastructure.
• Crypto-currency & Block chain
Running parallel to fin-tech is the birth of crypto-currency and block chain. Though both are different technologies considered outside the realm of FinTech, there are complimentary applications in which all three can work together to deliver new kinds of financial services.
• Investment & Savings
FinTech has caused an explosion in the number of investing and savings apps in recent years. More than ever, the barriers to investing are being broken down by companies like Robin Hood, Stash and Acorns. While these apps differ in approach, each uses a combination of savings and easy, small dollar investing to introduce consumers to the markets.
• Machine Learning & Trading
Being able to predict where markets are headed is the Holy Grail of finance. With billions of dollars to be made, it's no surprise machine learning has played an increasingly important role in FinTech. The power of this AI-subset lies in its ability to run massive amounts of data through algorithms designed to spot trends and risks.
FinTech is the future - so be part of it.
The Startup Club presents the Global FinTech and InsurTech Pitch Night on December 1st, connecting innovative FinTech and InsurTech startups with international investors and advisors!
The conference will host a series of renowned FinTech Advisors and Investors.
To learn more and RSVP, follow this link.
by Roshan Hesham, Marketing Executive