Particularly the financial and the payment companies are visualising a massive investment in the coming future. It is believed that FinTech is set to change the horizon of financial transactions irreversibly. It’s probable that the next few years will see some more money evolving from the paper and plastic which we all use today, and this will be into pure computer code. Here, we see some of the traditional banks and some of the brokers’ primary streams of incomes that will be initially removed, like transfer fees and account management fees but it will have a huge impact on overall financial investments.
FinTech is the label which is assigned to the financial service firms whose product or service is built on the technology, which repeatedly results in some of the most significant innovations that have the calibre to change the working practices. All the Tech entrepreneurs have interrupted almost every other major industry, but typically to the benefit of the consumer. Nevertheless, the financial industry is one of the world’s conventional oldest industries. These days working on finances and money has been deeply entrenched, and the amount of money that have vested interests riddles the sector that leads to highly motivated change which at times people resist.
The next big thing
The Fintech boom has seen a marked shift in the way we transact in India and other parts of the world. With the advancement of digitization in the world, the Fintech companies too have gushed across globe whereas the other existing players have seen a spine in their users. On the other hand, most of the users are restricted to the Tier I cities in a particular country, but not anymore.
Fintech companies are now all set to create a buzz; they are all ready to turn their attention to the other Tier II and III cities so that they can dive deep into the financial sector. They are the untapped markets, and these cities bring a greater opportunity for the other players in the existing market. Talking about the start-ups that have risen the funding recently has also spoken about the need to focus on the financial sector in the smaller markets. As per the reports and news, Paypal is also looking at establishing its presence in India by revolving to Tier II and III cities.
While FinTech is growing at a great speed, however, to count the banks working on these software solutions will be foolish. Businesses are trying to comply the FinTech solutions with their business for swift and easy implications of the financial transactions. The sheer amount of money that they have indicates that they can adopt the new technologies quickly whereas their lobbying power shall make sure that the incomers to the market face regulations in line with their own.