Saturday, February 15, 2019 02:00PM / By Michael
Dehoyos** / Header Image Credit: Dashdevs
The digital industry is progressing at a never before seen rate with innovate solutions and technologies being developed every day. In no industry is this truer than in banking and financial services. As the landscape is changing, Fintech companies are racing to establish themselves and take the lead along every avenue of financial services. What the distant future holds for fintech trends is anybody's guess. Fintech predications for 2020 on the other hand offer exciting opportunities and tangible solutions.
An individual's financial health is the state of their finances including assets, pension, credit, savings and debt. Being considered financially healthy involves having limited financial stress, never overdrawing your checking account, never being late with payments, not worrying about losing your job and essentially, not being constrained financially.
Only a minor percentage of people are considered fully financially healthy and with the rising cost of living, increasing numbers of people with student debts and the explosion of the gig economy, increasingly fewer people are expecting to become financially healthy.
To combat this trend, several fintech companies are emerging that focus on the financial health of the general public by building aspects to help ease the financial impact and increase financial benefits for customers earning, spending, saving and borrowing.
This development goes hand in hand with the increasing desire of organisations to increase user experience and convenience. As financial literacy increases, companies are promising financial health services to draw in more customers. Although helping people by offering financial benefits, Fintech companies have to make enough money to survive by incorporating impact, scale and sustainability. Having been around for a few years, the ideal models are being perfected causing an expected rise in Fintech companies offering financial health services.
The popularity and use of cryptocurrencies are expected to continue to rise as well as the technology, companies and apps surrounding it. With such a new development in the financial environment that continues to evolve, regulation is lagging behind, resulting in a sea of opportunity for Fintech companies to compete to carve out a system and implant themselves in the structure.
As the blockchain cryptocurrency market are increasing in value, Fintech companies are developing currently unseen technologies to assist with the conversion of cryptocurrency to cash and e-wallets. â€œThe rise of cryptocurrency is expected to ultimately change the face of banking and democratize the global economy, having a positive effect on business, fair trade, hospitals, governments and personal financeâ€ says Tanya Whyte, a blogger at Australia2write and Nextcoursework.
Prevalence of Bank Accounts
A large number of the global population (1.7 billion people) don't have bank accounts and are therefore invisible to financial systems. The primary reason is that they are living in underserved locations that have limited access to bank accounts and don't have enough money to necessitate one of the existing banking options.
Fintech companies are expected to extend their reach to new locations and target the untapped markets there with innovative banking methods and systems. Many companies are offering services to help customers with their financial literacy and financial health to set them up with sustainable and effective banking options.
Fintech companies are expected to carve out a niche in a financially underserved location and offer specific services to their target market, thereby increasing global financial visibility and creating brand new markets to interact with. â€œThe innovation and freedom of Fintech companies gives them the ability to shape the financial landscape of financially underserved locationsâ€ says Theo Hendricks, tech writer at 1day2write and Britstudent.
Almost all banks have digital services in the form of online banking and banking applications. However, in 2020 we predict the increase in numbers of exclusively digital banks. With the improvement of mobile technology and the global strive for digitally based convenience, Fintech banking start-ups are encouraging the availability of banking services at customer's fingertips: a strategy that has so far been warmly welcomed by consumers, particularly younger generations who have now become accustomed to mobile wallets and on-the-go banking.
An explosion in fintech competition and the necessity to navigate new markets makes for a rapidly evolving and tumultuous industry that currently has no clear path or leader. Fintech solutions offer a glimmer of promise for a more convenient, user friendly, and globally equitable financial system that exists for us all at the touch of a fingertip.
**Michael Dehoyos is a marketing expert who imparts his expertise as a content marketer and editor at PhD Kingdom and Aacademicbrits while contributing writing to numerous sites and publications including Academic Paper Help Service. Additionally, he offers marketing consultancy to companies in need of strategy.