Financial technology, or fintech, uses modern tools to improve and automate the ways that banks, investment firms and insurance companies operate. It is also used by consumers to manage their finances in more efficient and user-friendly ways.
When it first appeared, fintech was focused on the behind-the-scenes systems at banking institutions but it has since shifted to consumer-oriented services like savings apps, robo advisors and online brokerages. It also encompasses the development and use of cryptocurrencies like Bitcoin and blockchain, which compresses the transfer of assets such as titles, vehicle, homes and money into a single step that takes seconds rather than days.
While the COVID-19 pandemic and the resulting economic uncertainty have dampened fintech investments, the underlying technologies that power this new era of innovation – such as Open Banking, which allows third-party developers to build applications that access financial data – will continue to drive the way we interact with the world’s banking sector in future. This is especially true as Machine Learning is set to evolve the way we interact with our bank by allowing them to create a “segment of one” for every customer, meaning they can offer tailored products and service that are more relevant to each individual. This will have a profound impact on the customer experience, increasing loyalty and profitability for banks. The future is looking bright for fintechs! https://greyjournal.net/hustle/work-tech/navigating-the-new-challenges-for-fintech-startups-in-a-changing-economic-landscape/