FINTECH HAS BECOME A FAST-MOVING FIELD, AND THE NEXT DECADE SHOULD BE NO DIFFERENT.
1. Automation and Robotic Process
Robotic Process Automation is a software that handles human procedures. A robot could perform data entry utilizing Microsoft Excel or some other program. RPA will help banks increase effectiveness and wipe out idle time, particularly with regards to monotonous and easily repeatable tasks.
2. Big banks return to the innovation game.
Big banks are getting back into the innovation game. They’re establishing agile teams and labs to develop new ideas. JPMorgan employs 50,000 technologists. Bank of America is the world’s largest blockchain patent holder. Increasingly, even small banks are partnering with fintech startups.
3. More fintechs cater to millennials.
Millennials (now 23-38 years old) are the largest generation in the workforce. Between student loans and the high cost of living, they’re not buying homes at the rates previous generations did. They’re also less likely to be entrepreneurs than older workers.
Some startups are innovating ways to help millennials achieve those dreams. Flyhomes tweaks the mortgage lending process to allow ordinary buyers to make all-cash offers. Divvy lets home buyers rent to own. Goodly allows employers to contribute to their employees’ student loans.
4. Big money flows into fintech.
Venture-capital-backed companies in fintech raised nearly $40 billion in 2018. That’s an increase of 120%, just since 2017.
Big tech companies are also dipping their toes in financial waters. Amazon lends to small businesses to improve their customer experience and help build businesses’ capacity to sell on their platform. Apple is launching its own credit card to address customer security concerns, bringing its best-in-class customer experience to a financial product. Facebook aims to launch its own currency. What all these approaches share is a focus on putting customer needs first.
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