Initially, the term fintech was used to describe organisations that create software in the field of money. Over time, the scope of new technologies has expanded and gone beyond the purely financial. Now fintech software developers are in great demand, it is very difficult to find a really good partner company. Treat your choice very responsibly. Fintech technologies are also widely used in the field of insurance, trade and risk management.
To successfully merge into a new reality, you need to clearly understand what is happening around. Namely, how the spheres of B2B and B2C payments are changing, how barriers are being levelled in the process of digitisation of the industry, what new standards are being created in the field of digital payments, how millennials behave, steadily increasing their contribution to national economies and the private sector.
It is also important not to miss the opportunity to optimise your business and reduce costs through automation, reduce the burden on employees and expand the company through the use of digital assistants, personalising goods and services. Digital transformation for each company should become a full-fledged strategy, and not a chaotic introduction of individual tools.
Market
Today, the number of fintech startups is growing very rapidly, focusing on both B2B and B2C markets. In the EU this year alone, investors have invested more than $1 billion in fintech companies, and about the same in the US.
The reason is obvious: such solutions are in great demand among small and medium-sized businesses that form the basis of national economies. It is in the SME segment that the level of customer service and internal administration usually experiences problems: the tools of the digital age allow you to reduce costs, increase work efficiency, automate processes and make the best use of available resources.
Fintech Professionals Have the Flexibility
Fintech has features that make work in this area diverse and at the same time ensure its stability. Consider what opportunities a specialist in this field has. You can create completely new products or work with already proven ideas.
On the one hand, in the last 10 years, fintech has been developing rapidly, and new products are constantly appearing in it. Virtual cards, transfers by phone number, online trading – opportunities that were simply not available before. Developers of such products quickly grow into unicorn companies and become successful.
On the other hand, in most cases, fintech does not create new solutions, but takes existing ones and makes them more convenient. Banking, loans and investments have long existed in the offline market and are proving to be viable. Fintech companies are simply moving proven solutions online.
Fintech Products Work Directly With Cash Flows
Profit generation in them occurs faster than in products that earn indirectly, such as social networks or online cinemas. Since development efficiency is also directly expressed in money, it is easier to evaluate the results of such work, and the level of uncertainty in decision-making is lower.
Widespread Introduction of Blockchain
Most public blockchain solutions remove the middleman. At the same time, financial services is an industry that traditionally operates on an intermediary model. This is where solutions like DeFi and cryptocurrencies emerge that are incompatible with traditional business models and promise to disrupt traditional intermediaries. But not everything is so simple.
Technology is heterogeneous. In addition to public blockchains, there are also consortium and private ones – they are used to optimise processes within the industry. For example, mortgages are going digital, or raising money is getting faster because of digital financial assets. Whether it will eventually be undermined or supported depends, among other things, on regulation and the actions of market participants. But financial services will definitely become more efficient.
