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• 02.08.2021 11:45 am
#Sponsored #payment #trading

Fintech, otherwise known as financial technology, is a term to describe innovations that are revitalizing the financial services sector. They are technologies that have been implemented and integrated to help financial institutions streamline services, be more compliant, increase competitiveness, and draw in more customers. No one really knows where, when, or who coined the term, but one thing is for sure, it’s here to stay!

Over the last decade, and more specifically, the last 18 months, fintech has changed the way we do things. Particularly in terms of personal finance, investments, and ePayment. It has empowered societies and young people, giving us back control of our financial destinies, and made our lives much, much easier. It has been a particular boost for the younger generation who have found it easier to access a range of different sectors and markets they previously wouldn't have considered.

Trading

Trading on financial markets could once only be carried out by a broker who would take instructions and positions via telephone, fax, and later, email. It was not a market that was easily accessible to traders, especially the younger generations who may have found it somewhat intimidating. But with the development of the fintech sector, this has quickly changed.

All traders need today is a smartphone and an Internet connection to allow them to trade on markets such as forex, stocks, and shares. There are also now plenty of guides and sites containing information that can help educate younger and beginner traders, empowering them to be aspiring traders on the stock market UK. Previously much of this information was somewhat guarded and not widely shared with those interested in trading. However, there is now a lot of information available that has made the stock market accessible to a new and eager generation. The next step is finding the right investment opportunity to appear.

Personal finance

Checking your balance, making a transfer, or setting up a recurring payment such as a direct debit was quite challenging. It was also something that younger people found frustrating. It would typically require several phone calls to the bank or even visiting a branch or ATM. But thanks to fintech, most if not all of our banking can be done via an app. The majority of banks now allow clients to do most things online, although some things still have to be done in the branch.

But now, there is the emergence of online, app-based banks which have taken things a step further. These apps are completely online, with no physical branch for customers to visit. Everything is managed via an app, and authentication is typically carried out with biometric confirmations. This is particularly beneficial to younger clients who have busy lifestyles and want everything on-demand.

ePayments

Different from banking services, electronic payment providers allow consumers to make payments with the swipe of a thumb. A great example is PayPal which allows integrated payments to be made from a customer's card or PayPal balance to various service provides. Other examples include Apple Pay and Google Pay which are linked to individuals' mobile phones.

Additional names like Stripe, Wild Apricot Payments, Square, and Due are growing in popularity. These apps mean that users don’t have to log in and out of separate payment processors or type out card numbers every time they want to make a payment.

The future of fintech is bright. in 2020, the total investment in fintech companies was some $105.3 billion. By 2026, estimates suggest it will surpass $324 billion with a compound annual growth rate of almost 25%. This will be driven by intergration with new technologies, additional demand from the public, and an increased shift towards a digitalized world. Fintech is most definitely here to stay and it's bringing with it a new, young, and fresh demographic of people.

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