Question

FinTech is any technology that eliminates or reduces the costs of financial intermediation. Please discuss the impact of FinTech on your career and investment in the future. You can choose any topic or area in FinTech to discuss.

Answer 1

The Fintech Revolution is not a fairy tale or science fiction, it's a fact that transforms the shape of the global finance system. P2P fingertip loans, conscious crowd investment, cryptocurrency transfers, digital financial advisors — these items emerged thanks to strong coordination between FinTech companies and conventional institutions. While the former get funding for their ventures out of the envelope, the latter take advantage of digitisation. The outcomes of this alliance are certainly advantageous for both parties.

It is suspected that conventional financial institutions would be among the most likely organisations to experience disruptive changes in the coming years. FinTech startups' biggest investors are financial institutions: Citigroup, Banco Santander, and Goldman Sachs, which shows their interest in the emerging market. For example, in the US, FinTech companies have earned 63 per cent of total investments in the financial sector. Initially FinTech startups and conventional banks were competitors competing over any customer but now that has changed due to the FinTech financial services disruption.

Better customer support, improved financial stability, more resources for individuals and companies and much more are the founders' and incumbents collaboration fruits. Another example of FinTech's effect on banks is significant improvements in privacy and customer experience. Several data breaches that happened not so long ago in various parts of the world have forced the incumbents and their younger partners to notice. Since FinTechs relies more on mobile banking and financial services apps, the risks of unauthorized access to personal financial information, accounts, and digital wallets have been growing in time.

The possibilities that come with this 'decentralization' of financial services could create an environment where banks and fintech companies could work more collaboratively to share capital, making it easier to keep up with our rapidly evolving world. Also, those who work in the major banks usually have a banking history. However, according to Glen, 'in these latest fintech companies, people are mostly not from finance, they are from outside banking, and they want to make things easier for the customer. This creates space for creativity in the wider exchange of skills and information that can be obtained from a business because the people employed in that business come from different backgrounds