What is the future of fintech? Instant international settlements, open Forex rates, a wide range of payment instrument acceptance at an individual level, mega switches, and digital (but regulated) currencies are some of the trends experts predict will be big in the future.
Time will tell which innovations will go big. While we wait, here are some of the new products and services currently on the market based on digital technology, or fintech if you will.
Fintech (Financial Technology) is a term describing all innovative technologies with the potential of improving or replacing existing products and services within the bank and finance sectors. So far, fintech has been used for automated insurance, stock trade, banking services, risk management, and much more. The fintech industry uses modern technology and innovation to compete with traditional financial services and institutions.
Contactless cards are payments made by holding the card against the terminal instead of pulling the card strip or inserting the chip. The technology is also available on cell phones, called Near Field Communication (NFC), making two units capable of communicating wirelessly with each other.
Financial technology makes it possible to make a payment without knowing the recipient’s account number, only one has his or her mobile number.
Different platforms for CrowdFunding or Peer to Peer-lending are some of the developments we see in the credit area. We also see the use of other principles and methods for credit assessment and credit scoring, based on large amounts of data and real-time information.
In the third world, we have registered solutions where people can get insurance by scanning a barcode on, for example, a bag of seed grain, thus getting insurance for the crop of the year.
Other notable solutions are combining damage notification on a mobile phone and satellite pictures, providing the basis for damage settlement in case of natural damage (within microinsurance).
In yet other countries, mechanisms can be installed in your own car which increases the discount on car insurance when signals from the car indicate that the driving is safe and good.
Some fintech innovation is so well implemented in daily life, it’s almost considered old technology. Examples are robot technology for customer service and transaction management, online banking, and online stock trading.