The Finance Sectors Fintech is Disrupting Right Now
- Blockchain , Cryptocurrencies
- 27.07.2021 01:05 pm
The global fintech sector is expected to be worth more than $324 billion by 2026, growing significantly each year. In terms of geography, APAC and the Americas are those that are flourishing the most, closely followed by Europe. The former share some 40% of the market between them.
Fintech is present in almost every industry, but which is it disrupting the most?
The real estate industry is going through a period of profound evolution. More and more technologies are being implemented to help speed up the process of buying and selling while lowering costs. For example, VR is being used to show prospective buyers around homes, and AR can allow them to add their furniture to see how it might look if they purchase the property. The entire purchase process has also been made more efficient.
Not only can buyers search for the perfect property online, but they can even seek out advice on financing and apply for mortgages. Online mortgage brokers like Trussle facilitate advice, guidance, and even the comparison of different deals. The user inputs their income, deposit size, and desired duration, and the site presents them with a range of offers. From here, they can also apply online. All of this can be done via smartphone, removing the need for telephone calls or in-person meetings.
In the future, we expect to see the sale process taking place on the blockchain, including all legal work, escrow, and payments.
There was once a time when checking one's balance meant seeking out a cash machine, going into a branch, or spending 20 minutes on the phone. Those days are long gone. Now, consumers can check their balance, make payments and transfers, and manage their accounts via a mobile app.
In addition to conventional banks going online with their services, a new breed of eBanks has popped up, which offer online-only services. Some offer exchange, savings accounts, and more via apps. These companies are big competition for high street banks as they typically provide less bureaucracy and better fees. It’s estimated that almost 2 billion people globally use online banking, and many of these are opting for apps.
It’s likely that this trend will continue, including the use of mobile payments, quicker and cheaper transfers, and the decline of card usage in favour of other forms of digital payment.
31% of the world's adults are unbanked. Not only does this exclude them from participating in the online sphere, but it also limits their access to finance. Millions of entrepreneurs, private individuals, and small business owners worldwide are denied access to loans that could help them become successful, sustainable and lift them out of poverty. Thankfully, fintech has stepped in to help.
One example is blockchain-based and crypto lending. When lending on the blockchain, the loan is managed by smart contracts. There is also no need for an intermediary or third party or the fees they charge. The loan can be paid out in small instalments after certain criteria are met, and it also gives borrowers access to a larger pool of lenders. By using crypto and blockchain lending services, there is greater transparency for all involved, and disputes on repayments can be solved quicker.
We are yet to understand the full potential of fintech, but it will continue to disrupt and improve the way we live our lives. The future looks exciting when we think of where we are now and what is still to come.