What is “FinTech”
The portmanteau “FinTech” is made of the words ‘financial’ and ‘technology’, blended together to create a term that describes the emerging financial services using technology. Within the past seven years, the term “FinTech” has broadened from its original meaning, to include any and all innovative technological advances and changes in the financial sector – this includes innovations in retail banking, investment and even crypto-currencies.
So far, the technological advances in the financial sector has improved and accelerated our ways of transactions, banking and trading. Mobile applications for banking and trading and things such as digital wallets, (such as AAPL and GOOG) should all be reaching fruition around 2020. New machines with “learning” technology will be able to remove the guess-work from financial decisions. These technologies will be able to learn the habits of users and engage with users to make their subconscious spending and saving decisions better for them. Additionally, improving the data analytics will help refine investment decisions and create new opportunities for financial innovation.
Currently, one of the biggest crypto-currency companies, Ethereum, is working on developing their own high-speed network – Raiden. Their goal of the Raiden network is to have such high-speed on their network, that they can accomplish one million transactions per second, with ease. This would completely obliterate the power of Visa and MasterCard, which can only handle fifty thousand a second. According to the company, Raiden is functioning on a test network (as of September 2017), which means it’s almost ready to make its debut. The implementation of this network will impact the whole approach to money and the crypto-currency world, and even the Visa and MasterCard.
Many different groups of people use FinTech software and applications in varied ways, these newer creations of learning technology will create pathways for all diverse kinds of people and roles to connect and interact; creating many more opportunities. However, jobs in the finance sector will most likely begin to prioritise those with technological experience over the more traditional candidates.
Despite the brilliance of the technological changes, there still remains to be one problem; because the way money is working is changing so quickly, the right communication to consumers’ needs to happen to educate them which requires a focused investment with a specific branding strategy to produce appropriate and attractive materials that will entice the consumers and help them trust this new system and way to operate with crypto-currencies and the FinTech world as it grows.