The Effect Fintech Is Having On Our Everyday Lives

The Effect Fintech Is Having On Our Everyday Lives

James Crossland

Digital Marketing Manager|Kerv digital

Published 06/07/22 under:

Have a question about something here?

Get in touch

We may think of Fintech as a new concept but it’s been part of our lives for decades

 

Fintech, a portmanteau of Financial Technology, is a catch all term for any tech software (or hardware) that’s been created with the goal of augmenting streamlining, digitising, disrupting or generally making better any ‘traditional’ financial service.

Think of the level of fintech that layers our lives already, that didn’t exist just a few years ago.

Monzo completely disrupted the banking app market with more and more users making the switch every month, nights out can easily be split via the transferring of money via Venmo, you can pay for groceries in a shop by scanning a phone with Apple Pay and Uber’s can be ordered with pre-stored debit cards paying for you automatically.

 

Fintech is becoming more and more ubiquitous every day, happening so subtly that many don’t stop to consider how wide ranging it’s even become.

However, as with many emerging technologies, due to the breath-taking scope of what fintech can make possible, it makes it an ambiguous subject to discuss in any kind of depth.

Fintech: A Definition

Fintech refers to any software, hardware, algorithm or application for computers or mobile devices. Fintech platforms can empower the most basic of functions, from moving money around accounts, the paying of bills or applying for a loan right through to technically intricate concepts like the blockchains in cryptocurrency or peer-peer investment platforms.

From there, fintech can branch off into several ‘subcategories’ including, but not limited to:

 

  • Wealthtech – Wealthtech refers to the use of innovative tech such as AI or Big Data to empower investment firms.
  • Investtech – Similar to wealthtech, investtech helps users better invest their day-to-day funds and make the most out of funds that are invested
  • Insuretech – is seen as a commitment within the insurance sector to new, better and innovative developments within their product offerings and back-office processes.

When Did Fintech ‘Start’?

Just because something has become a catchy buzzword recently, doesn’t mean it hasn’t also been around for a long time.

Whilst it might seem like a relatively new phrase as the term Fintech was only added to the dictionary in 2018, as a concept it’s actually been around for decades… think of the introduction of cash machines in the 70’s. At the time, being able to withdraw your own money from a ‘hole-in-a-wall, rather than a bank, was seen as bleeding-edge financial technology, no matter how mundane it seems today.

 

Fintech may once have had a bit of a ‘start-up’ reputation.

If you’d heard the word at all ten, fifteen years ago it’s likely you may have thought of ‘Silicon Valley taking on established banking institutions, today however it’s become an integral part of many digital transformation processes.

How Does Fintech Affect Our Everyday Lives?

Without denigrating anyone, large financial institutions don’t exactly have a reputation for agile methods of working or continuous improvement.

Fintech is changing that though as younger, more techy savvy audiences demand more from the financial sector.

Immediacy, mobility, personalisation… these are just a few of the buzzwords that a modern audience expects in their everyday tech.

Fintech is helping to fulfil those goals by empowering technology to be instantaneous… it wasn’t so long ago that you’d have to go into a bank to apply for a loan or speak to someone on the phone, that decision can be reached instantly on an app now… thanks to fintech.

 

One of the main reasons for the growing popularity of fintech is its ability to bypass previously clunky process, and it often does this by eliminating the need for human interaction and the possibility for human error. We’ve already mentioned you can apply for, be considered and approved/declined for a loan and then have the funds issued to your account… all without the need to interact with a fellow human through the use of some clever RPA and AI. But you can also do the same for a mortgage (technically the same thing, albeit with a much bigger commitment).

It doesn’t end there though.

Want to invest in the stock market? Great, well you don’t need a broker anymore… just automate the process by downloading an app to your phone, invest in what you want, when you want, where you want.

In fact, investment platforms are a great example of how far fintech has come. In previous times, even if it were possible to buy or sell stocks directly, you’d still likely have relied on the advice of a qualified broker. Modern investment apps however all come with a ‘robo-advisor’, an AI backed chatbot capable of analysing the market and offering advice as to where your money is best invested.

Some of these things may seem very simple, but there’s a lot of fintech working very hard in the background to make them all so accessible and streamlined.

How Secure Is Fintech?

One of the surprising things about fintech is the level of trust it engenders in end-users. A recent EY report highlighted the fact that 68% of respondents asked showed a willingness to use financial tools developed by a non-traditional (i.e., non-financial) organisations over those that that were developed by more traditional institutions, with 89% of SME’s happy to share theirs and their client’s data with fintech organisations.

What that shows is that financial apps, processes and tech don’t have to carry a hallmark of authority from Wall Street, The Bank of England or any other large, prestigious financial institution… they just have to perform their function well and make life easier for someone.

 

Whilst all that is true, it should also be pointed out that many fintech companies are almost entirely unregulated. A lot of people at the moment are investing in crypto currencies and the block-chain technology that backs them but were anything to go wrong investors would have very little come back.

 

It may be that there is no ‘one’ answer as to how safe fintech is, taking it very much on a case-by-case basis. In certain instances, fintech can immeasurably improve the security of financial transactions, but newer, dare we say it, flashier, advances are still to be proven. That proof may be difficult to get given the immense proliferation of fintech in recent years.

What Does The Future Hold For Fintech?

One thing’s for sure… fintech isn’t going anywhere anytime soon.

Deloitte did note last year (2020) that the effect the pandemic has had on global economies has left industry analysts and insiders unsure about the immediate future of fintech. Many fintech organisations have suffered setbacks, whilst others have thrived and expanded… with demand for mature fintech solutions at an all time high.

That means though that many, if not most organisations will be increasingly counting on fintech to help them navigate digital transformations in the future.

Longer-term it’s likely we’ll see more and more collaboration, consolidation and even acquisitions between legacy financial institutions and younger fintech’s, with end-users continuing to see an increase as to the penetration of fintech into their everyday lives.

Related Articles

You might also be interested in

From our world to yours

Compliance monitoring under the spotlight

From our world to yours

The rise of business messaging apps and the need to stay on...

From our world to yours

Compliance: important ownership changes while adapting for flexible remote workforces

From our world to yours

Data silos and legacy compliance monitoring systems – barriers to effective surveillance...

From our world to yours

What it takes to top the Gartner CCaaS Magic Quadrant

From our world to yours

Why gamification is topping the bill for contact centre agent workforce management...

From our world to yours

8 contact centre trends to future proof your business

From our world to yours

Spotlight on Local Government – Where is CX heading for citizens?

From our world to yours

Think bigger with Microsoft Teams.

From our world to yours

Microsoft Teams is here to stay, what’s the next step?

From our world to yours

At Kerv we want to make customer-first really mean something…

From our world to yours

Different by design

From our world to yours

How Engagement Technology is Transforming the Membership Sector

From our world to yours

A modern CRM system needs a modern data platform

From our world to yours

What is… Microsoft Cloud for NonProfit?

From our world to yours

6 Back-office technologies modern supply chains should already be using

From our world to yours

Re-imagining CX in a golden age of integrations – combining Genesys and...

From our world to yours

Maximising CX value through AI-driven digital engagement

From our world to yours

Experience as a Service: What it is, why it’s important and where...

From our world to yours

Achieving empathy across digital channels

From our world to yours

Redesigning CX from the ground up

From our world to yours

Genesys EMEA Cloud Partner of the Year 2020

From our world to yours

Life at Kerv Digital As A Functional Consultant

From our world to yours

Life @ Kerv Digital as an Apprentice Power Platform Consultant

From our world to yours

How To Increase Efficiency With Dynamics 365 Supply Chain Management

From our world to yours

Supply Chain Control Towers – The Tech That’s Changing Logistics Forever

From our world to yours

Supply Chain Digital Twins – The What, The Who & The Why...

From our world to yours

On-Demand Logistics & The Tech That Makes It Possible

From our world to yours

What Is… Insurtech?

From our world to yours

What Is… Microsoft Cloud For NonProfit?

From our world to yours

16 Times You’ve Been Using Artificial Intelligence Without Realising

From our world to yours

Jack’s Worried – His Website Is Losing Him Dues Paying Members

From our world to yours

From Paper Based To Cutting Edge… With Zero Downtime

From our world to yours

Life at Kerv Digital as a UX Designer

From our world to yours

Sarah is Sad – Her Staff Aren’t Finding New Members Or Engaging...

From our world to yours

How To Squeeze Hidden Value From The Hidden Data You Didn’t Know...

From our world to yours

Reducing Member Churn & Delivering Member Insights With Data Science

From our world to yours

Life @ Kerv Digital As A Dynamics Functional Consultant

From our world to yours

Dealing With Ethical Walls In Tech… Ethically

From our world to yours

Life @ Kerv Digital As A DevSecOps Engineer

From our world to yours

IOT: Dragging The Future Of Healthcare Into Today

From our world to yours

How Will Tech Revolutionise Health Care Over The Next Half Century?

From our world to yours

Empowering Public Transport With Big Data

From our world to yours

Putting Patients First Vs. Cost Concerns

From our world to yours

Life @ Kerv Digital As A Power Platform Solution Architect

From our world to yours

What’s The Best CRM For The Membership Sector?

From our world to yours

How Remote Patient Monitoring Data Can Drive Health Efficiencies

From our world to yours

Is A Career In NonProfit Digital Transformation Rewarding?

From our world to yours

Six Back-Office Functions NonProfits Should Be Using Robotic Process Automation For

From our world to yours

How Data Storage Management Will Change In 2022

From our world to yours

Business Central Vs Sage – Which Does Your Organisation Need?

From our world to yours

How To Debug Something With A Rubber Duck

From our world to yours

Using Design Thinking To Empower Digital Transformations

From our world to yours

How Business Central Can Keep You GDPR Compliant

From our world to yours

What Can Business Central Actually Do?

From our world to yours

Why Data Classification Is Vital To Your Organisation (And How To Easily...

From our world to yours

How To Inspect Items When Using The Execute Pipeline Activity In ADF/Synapse...

From our world to yours

How To Create UI Flow’s In Power Automate

From our world to yours

D365 BC Vs D365 FO: Let’s Settle This Once And For All!

From our world to yours

How To Drive Donor Engagement With Kerv Digital’s Free Powerups

From our world to yours

9 Awesome Benefits To The Microsoft Dataverse

From our world to yours

Canvas Apps Vs Model-Driven Apps

From our world to yours

How To Set Up Field Monitoring In Business Central

From our world to yours

Check Out The Benefits Of The Microsoft Catalyst IDEA Framework…

From our world to yours

Component Led Development, Or… How To Make Your Organisation Instantly More Resilient

From our world to yours

How To Achieve A Single Customer View In 5 Easy Steps

From our world to yours

Best Practice For Creating Cloud Flows With Microsoft Power Automate

From our world to yours

Legacy Estate Reduction… Or When To Get Rid Of Old Tech

From our world to yours

What Is Fintech?

From our world to yours

How To Get Better At: Online Continuous Personal Development (CPD)

From our world to yours

Virtual Exam Proctoring (Or How To Stop People Googling The Answers At...

From our world to yours

How Hyperautomation’s Benefiting PAO’s (Professional Accountancy Organisations)

From our world to yours

Cyber Security For Remote Working… How Everyone Can (And Has To) Pitch...

From our world to yours

What Is An Advanced Persistent Threat (APT’S) Attack?

From our world to yours

Visualising Your Data Differently With Power BI

From our world to yours

Database Marketing – What Is It & How Can You Benefit From...

From our world to yours

Microsoft Dynamics Cloud Licensing Options – What’s Available?

From our world to yours

Privacy By Design – What You Need To Know

From our world to yours

How To Connect To A Named Sandbox Environment

From our world to yours

What Are The Different Types Of Cloud Licensing Agreements?

From our world to yours

How To Export To Text Files From Microsoft’s Business Central SAAS

From our world to yours

Technical Debt – The What, Why, When & How Do I Get...

From our world to yours

Ensuring Business Continuity With The Microsoft Stack

From our world to yours

What’s The Best CRM For The NonProfit Sector?

From our world to yours

Rage Donations – How To Engage Past The ‘Now’

From our world to yours

What Is It & How To Avoid: Vendor Lock-In

From our world to yours

The Bad Guys Don’t Care You’re The Good Guys

From our world to yours

Build The Future Of The NonProfit Sector… Today

From our world to yours

Data Protection & Artificial Intelligence: Best Practice

From our world to yours

Shadow IT – 9 Things To Look Out For & 1 Unexpected...

From our world to yours

Organisational Debt & Why It Makes Digital Transformation Hard

From our world to yours

Discussing All Things RPA… Robotic Process Automation

From our world to yours

Creating A Low Code App Using PowerApps & The Power Platform

From our world to yours

Now’s The Time To Get Excited About Cognitive Search

From our world to yours

If You Don’t Have An Automated Deployment Process… You’re Already Obsolete

From our world to yours

Tips & Tricks To Creating Successful Volunteer Management Systems

From our world to yours

The Five Types Of Cyber Criminals

From our world to yours

Security-By-Design: Or… Better Safe Than Sorry!

From our world to yours

Leading With Technology In The Membership Sector

From our world to yours

What Does IAAS, PAAS & SAAS Stand For?

From our world to yours

What Is Business Architecture?

From our world to yours

What Is Data Gravity? (And How Your Organisation Can Benefit From It)

From our world to yours

How To Fix DateTime Stamps In Microsoft Dynamics 365

From our world to yours

6 Easy Steps For Promoting A Culture Of Cyber Security

From our world to yours

15 Cyber Security ‘Things’ To Safeguard Your Business

From our world to yours

Microsoft Dynamics 365: Settings In solutions

From our world to yours

13 Ways To Save Money When Using Microsoft Azure

From our world to yours

The Problems With Addresses In Microsoft Dynamics 365

From our world to yours

Understanding The Benefits Of Predictive Science In The NonProfit Sector

From our world to yours

Top 6 Digital Impacts On Membership Organisations

From our world to yours

The 7 Stages Of A Successful AI Project

From our world to yours

What’s The Difference Between UI And UX?

From our world to yours

8 Ways Your Business Can Increase Turnover With Big Data

From our world to yours

Dynamics 365 In NonProfits

From our world to yours

Kerv acquires TDS Global Communications Compliance Practice

From our world to yours

What is Microsoft’s Power Automate?

From our world to yours

What is InvestTech?

From our world to yours

Derek Is Stressed – His Purchasing Team Aren’t Coping With Long Winded...

From our world to yours

Life @ Kerv Digital As A Jnr DevSecOps Engineer…

From our world to yours

Life @ Kerv Digital As A Principal Architect

From our world to yours

Life @ Kerv Digital As An Azure DevSecOps Engineer…

From our world to yours

Life @ Kerv Digital As Head Of Client Services, Public Sector

From our world to yours

Life @ Kerv Digital As A Junior DevSecOps Engineer

From our world to yours

Life @ Kerv Digital As A Graphic Designer

From our world to yours

Microsoft Inspire 2022 – Here’s All The Big Announcements!

From our world to yours

The Need for WhatsApp Compliance Recording

From our world to yours

Life @ Kerv Digital As A UX Researcher

From our world to yours

Life @Kerv Digital As A Senior Delivery Manager

From our world to yours

Life @ Kerv Digital As A Senior Delivery Manager

From our world to yours

Data Silos and Legacy Compliance Monitoring Systems – Barriers to Effective Surveillance...

Have a question?

Leave your details and a member of the team will be in touch to help.
Type your first name here
Type your last name here
Type your phone number here
Type the company you represent here
By pressing send, you agree to our Terms and Conditions and Privacy Policy.
This field is for validation purposes and should be left unchanged.