This post has been written by guest blogger Josh Wardini for Oliver* | *AllThingsCrowdfunding.
With $8.2 billion invested in Fintech globally, it is clear that it is attracting a lot of attention at the moment. In case you don’t know what a Fintech is, it is a company that uses technology in the finance sector.
So, when the Diners Club card was first introduced in 1950, that was an example of Fintech. It does not sound like a big deal to us now, considering that we now have so many different payment options, but it did have a significant impact.
It changed the face of the retail industry for good. Advances in Fintech today have the same effect. Fintech works on ways to improve efficiency and reduce costs, providing more customer centric solutions.
Our computer systems are smarter and far better at analyzing big data. They are, for example, better able to predict which kind of discount a client is more likely to use. Better data analysis and processing makes it possible for companies to be more cost effective and provide a better client experience.
Data analytics falls under the top five big opportunities for Fintech companies going forward. It is just one of the areas in which these companies can make a real impact.
Going forward, there is a lot expected from Fintech. That they have already changed the financial services industry is beyond question – around 93% of banks admit that it is essential to partner with a good Fintech company.
But that is only the beginning. There is a great deal more to learn about the rise of Fintech. Will they completely obliterate traditional banking?
Find out by looking through our comprehensive infographic.