The development of fintech, or financial technology, is trending more than ever. Technological achievements have opened new doors for business to extend their efforts when it comes to providing financial services. The ultimate goal is to make this services easily accessible and to provide a great customer experience.
Fintech is currently used in both B2B and B2C industry sectors. Business clients and consumers respectively find it appealing, mainly because it streamlines the communication. The existence of free chatbots is just one of the examples of what has been done to make this tech available to everyone.
But why did it tie to business market so perfectly? If we got your attention, stay with us as we are going to explore the ties between fintech and the current business market.
The Increasing Use Of Smartphones
The rise of the smartphone is real. In 2016, 2.1 billion people were proud owners of smartphones, but this is not the end of it. It is expected that the number of smartphone users will go well above 5 billion by 2019. Thats next year, folks. At the same time, the Internet is becoming more and more available.
Thanks to tech, today even some of the most remote places of the world have Internet access. We all remember that first Aliexpress order and delivery in the remote and rural Chinese village. In this new global market, Fintech has taken the lead role, all thanks to the convenience smartphones bring with them. The rising trend in smartphone usage is only going to tie it more to the business market.
Communication Is Moving To Digital Realm
In the past, financial services were only delivered in a real person-to-person scenario. Today financial institutions have all the benefits that digital communications channels offer to reach more people and to improve customer service to their customer body. The number of mobile phone messaging app users worldwide is on a constant rise. In 2016, 1.6 billion people used at least one of the popular messaging apps to communicate. Experts estimated that this figure is going to grow to 2.5 billion users by 2021. And we are not talking about Facebook Messenger here alone, but also about Viber, Skype, Slack, Telegram, and Whatsapp.
With this in mind, we can’t say that we were surprised to see the financial chatbots blooming in 2017 and that they continue to bloom in 2018. SnatchBot, and other bot building platforms, made the resources and tools needed to build a chatbot available to the masses. SnatchBot even managed to create a platform which doesn’t require any programming knowledge to build a functional and robust chatbot that can be applied to all channels, entirely for free! This is huge for small businesses attempting to cover more work without adding to their manpower.
The Popularity Of Mobile Banking
The development of smartphone culture, Internet access, and popularisation of digital communication channels have changed the behaviour of consumers. Especially in the Western hemisphere where people are constantly online. With the ability to check everything on the go, people also expect to handle their financial affairs in the same fashion, and that’s exactly where the Fintech comes in. Thanks to the Fintech solutions, people can now check their online accounts, set up their online investment portfolios, and handle their financial affairs on the bus.
In the end, mobile banking brings another convenience to the market. It enables small financial firms to deliver the same range of services as large companies do. By levelling the service accessibility, Fintech definitely reserved its spot in the financial landscape for the many years to come.
The Era Of Customer Centric Market
Maybe you are still not familiar with the modern market concept. If you didn’t know, we are currently living in a customer-centric era, and this doesn’t just apply to the finance sector, but to all other sectors as well. Modern customers expect an instant and high level service. This is why all the successful banks, investment and insurance companies are trying to bring their service game to the next level. And due to the popularisation of smartphones and Internet access, the only way to do it is to adopt new Fintech solutions.
Coming Of The Crowdfunding Movement
The crowdfunding movement is another reason why fintech matters to businesses worldwide. With crowdfunding, it has become easy for people all around the globe to find funds for their ideas. To do so quickly and easily, they needed a solution. Of course, this solution came from the fintech industry cookbook. Thanks to the Internet and new payment systems powered by the fintech solutions, people can pitch and cash in their ideas in a matter of weeks.
Big Data Analytics
In the end we have to address the data. With so much unused data circling around the financial institutions it was just a matter of time before we had a working solution, one that is able to track, record and analyse data in real time. The big data analytics engine is today embedded in popular fintech solutions, enabling financial institutions to leverage all that data. By providing financial institutions with new opportunities to draw powerful and actionable insights, fintech has tied itself to the current business market perfectly.
With machine learning and analytics working hand in hand, fintech helps financial institutions not only to deliver top-notch services, but also to identify the trends and bottlenecks, and to continuously work on improving these services. These are the strongest links in the chain between fintech and the current business market. As you can see, the ties are perfect because they are powered by both financial organisation and customer needs.
Also, fintech has created new opportunities for businesses around the globe, and all that at a lower price. At the moment it is safe to assume that businesses will continue to adopt solutions from the fintech industry, because they help companies stand out in their markets.