Estimated FinTech Industry Size Today:
Estimated FinTech Industry size in the Future:
$285 billion if they successfully strip away all business flowing through other financial services industries.
Why the Industry is Ripe for Disruption:
Creating an ease of doing business with vendors and service providers is where Financial technology makes the biggest difference. Making activities such as taking advantage of crowdsourcing websites, making mobile payments and transferring funds internationally, the consumer is increasingly coming to expect every service available to them to be self-serviceable.
FinTech startups have recognized that our culture, in which the “I want it now” way of thinking has completely permeated seemingly every marketplace, requires a way to connect people’s money with where they want to spend or invest it instantly. As Fintech becomes increasingly relevant, venture capitalists and the titans of Wall Street have been clamouring to invest in these startups. Over $10.5 billion was invested before 2015 came to a close and that number only stands to rise.
FinTech provides advantages to businesses as well. Small organizations routinely deny acceptance of credit cards. Reason being that the cost to get set up and the fees required to maintain credit card transaction practices was prohibitive. Fintech companies make payment available to any vendor via a device they’ve invested in for personal reasons, their cell phones. Removing the need to invest upfront, small businesses are now able to accept a wider range of payments and therefore are able to take in more transactions. The analytics provided through many of these Fintech tools add another element to the industries growing success.
Top Trends to Watch:
Traditional banking institutions will continue to use Fintech to improve processes and the customer experience.
- Mobile commerce will continue to be a point of interest for companies who want to stay in front of their customers.
- Open APIs enabling software developers to quickly improve user applications will begin to be a standard.
- Wearable technology, much like the smartwatch, is on the radar of 72% of major financial institutions.