Fintech has proven to be the new technology and innovation that delivers not just improved, but faster financial services to the world we live in today. Apart from using the key factors of science and technology to boost financial services, Fintech has gone a long way in providing unique opportunities to the finance industry.
Since 1918, various Fintech companies have been established. All of which have succeeded in driving the technology to greater heights to date. However, it is a common fact that this innovation has a lot more to offer us. Its rapid growth is proof of what it can still achieve and deliver to the world.
Many countries around the globe have seen what this special technology has in store for the world. Investments are being made and in fact, global investment in Fintech hit 59.9 billion across 875 deals. Apart from this, a lot of companies around the globe are increasingly partnering with Fintech industries. Proof of this is the average rate of partnering and research with Fintech companies which is at 45%.
Fintech and the Insurance Industry
As a matter of fact, 84% of insurers will increase Fintech partnership over the next 3 – 5 years. Not to mention, transaction and payment services will be experiencing better levels of functionality and safety through the use of Fintech. The industry has adopted the use of artificial intelligence(AI) in payment and financial services, as 46% of large Fintech companies are powered by AI. This has led financial services to become one of the top 3 industries which are benefitted by AI.
Fintech and Banking
Fintech has made financial services better by providing unique opportunities. Mobile payment is a well-invested feature of Fintech that has contributed to the finance industry. In fact, a whopping $780 billion worth transactions took place via mobile in 2017. This got 50% of users viewing mobile commerce as a primary Fintech opportunity. Apart from that, many sectors including banking and insurance are likely to boost profitability by 38% through the use of AI in Fintech.
In the near future, there would be 36.8% better banking and lending through Fintech firms. Even with this, there would be 42.7% better payments and transfers, 31.7% better investment management, and 32.8% better insurance.
For better and more concise information regarding Fintech and how well it has grown, do not hesitate to refer to this infographic from Carsurance, It provides a more advanced view of the modern trend of Fintech and how it will contribute to the many aspects of human lives in the near future.