According to recent data, the number of US consumers who began using technology to manage their finances has grown to 80%. Considering that’s a 22% leap from 2020, it’s fair to say that fintech has, in itself, been a disruptor to the financial industry.
If you’re wondering exactly what fintech is, you don’t need to. Just look down at your phone and you’ll likely find some examples of fintech.
Standing for “financial technology”, fintech is essentially a combination of the two sectors, where traditional financial services have been transformed into a technological service. If you have an app to pay for your products, analyse your incomes and outgoings, or even a stock-trading app to watch market movement, then you are invested in fintech.
Similarly, fintech has been adopted by financial services, advisors, brokers, banks, and more, all to contribute to economic growth and make transactions and financial data collection easier than ever before.
Is There A New Disruptor On The Block?
Another thing you might not know is that fintech’s origins can be traced right the way back to the 1970s when the first computer systems introduced the concept of digital banking. So fintech, in many ways, is old news.
Cue AI, the latest hot topic in the financial industry. Over the last few years, AI has been on everybody’s lips. The capabilities of the technology, and its ability to streamline traditional processes, have been adopted by a number of companies, to the point where it’s completely overturning how businesses and consumers operate.
In the fintech scene, this could be a groundbreaking turn of events. Meet Eldad Tamir: the visionary founder behind FINQ’s disruptive approach to investment. For the last couple of decades, companies have been using traditional technical processes to make – and offer to consumers – their market analysis.
But AI now has the power to harness big data, assimilate algorithms, make predictions, and solutions and effectively advise investors without the need for a middle man. FINQ’s approach is essentially giving the power back to the investor and making it easier than ever before to enter the market and make returns.
The Future Fintech Scene
This is also being done through customer support. Even with fintech customer support apps, a human needs to be on the other hand to understand a customer’s query and offer direct solutions.
With AI, however, consumers can talk to AI-generated chatbots that will be able to deliver the same service, perhaps even with more researched, analytical advice that will add to their satisfaction.
For financial services, AI can also enter the fintech industry to make it safer. While fintech has been a significant and useful innovation for everyone, there are still a number of risks that come with computer programs, software, and other technologies undertaking financial tasks. AI, however, can be a powerful tool to detect fraud, combat malware, and essentially predict when and how future attacks might happen.
As the world progresses and the benefits of AI continue to be recognised, there’s no doubt that it will play a significant role in the fintech industry, helping to make finance accessible, convenient, and safe for everyone.
