Fintech Startup Facts – How to Get Started
Financial technology is the new innovation and technology that seeks to replace current traditional financial techniques in the provision of financial services. It is also an emerging market that makes use of cutting edge technology to boost financial activities in finance. The term itself may sound new but it has been around a long time. This is because it evolved from early forms of communications technology that was primarily used for mass communication, such as radios and telexes. This branch of technology eventually went on to become financial technology. The aim of this branch of technology was to develop new ways of managing financial transactions, thereby improving efficiency.
The impact of fintech to the finance industry is yet to be felt. However, there are already noticeable changes within the industry. Most notably, financial services have become more convenient for consumers. With the advent of online banking and mobile banking, it has been easier for consumers to manage their own financial accounts. These days, consumers can do their banking through computers and mobile devices and do transactions such as borrowing money from banks, paying bills online and more. As more consumers rely on computers and other modern technologies, traditional banking has faced challenges.
Some worry that with fintech and the evolution of technology, traditional banks will lose their market share to financial services providers like banks that offer online banking and other types of internet-based financial services. Some industry watchers however believe that this change is only a positive for the economy. According to experts, it gives the government an opportunity to take control of the failing economy and pump money into the system through fiscal stimulus programs. In addition, financial services provided by traditional banks will continue to attract customers from both the traditional banking community and the internet-based world of fintech.
Although Fintech is still a relatively new term, it already has disrupted the traditional banking industry. Many people have criticized the term for its overuse, but for those in the financial services industry, fintech is already a reality. Fintech companies offering online services such as bill payment and loans have already carved a niche for themselves in the financial services industry. This is only going to make it more difficult for startups to enter the industry and create a foothold.
Despite the skepticism of many economists and bankers, fintech remains a viable option for startups who want to go head-to-head with large banks and financial services companies. The growth of the internet has given startup entrepreneurs access to millions of consumers who use online banking and purchase products using credit cards. As more Fintech companies start to provide internet-based services to consumers, startups have a better opportunity to succeed. Fintech companies are already making inroads in some areas such as travel, home buying and health care. With online banking gaining in popularity, the future of fintech looks very bright for consumers.
As the name suggests, with Fintech comes a lot of risk. However, given the success of some of the Fintech companies that have already been established, there is certainly room for growth. Some analysts believe that there will be more than one hundred operating Fintech companies by the end of the year, with the number increasing annually. There is also an opportunity for startups to get into banking because of the low barrier of entry. Although there is risk involved, the rewards could well be great if you can get it right. If you have a business plan and a good understanding of risk and competition, you should have no problem entering the world of finance through the use of Fintech.