Up until the last decade, fintech was an alternative back-end solution, given little room to provide financial solutions in most corporations. However, we have got to admit now that fintech opportunities have exploded and the technology is radically taking its rightful place in the commercial world.
Though the industry is considered to be in the startup stages, fintech challenges and opportunities have ramped up in equal measure. Especially in the retail banking, mobile money platforms, and insurance arenas. Commonly used fintech tools include asset management, budgeting, and banking.
Top Fintech Opportunities Looming the Market Currently
1. Financial Planning
There can never be financial transformation without planning. Both individuals and companies need planning tools to fully exploit opportunities in the fintech industry. Fintech challenges and opportunities continue to present themselves as technology continue to change with change in consumer markets.
Businesses can draw upon opportunities in fintech for financial planning purposes. For example, budgeting, insurance payments tracking, alternative asset management, and bank transactions. This enhances tracking of:
· Income flow
· Credit and debit cards, plus
· Loan payments
All these tasks and more are made possible within one application.
Not so long ago, loans could only be accessed from a traditional bank. Today you simply log in to an app, fill in your details, and get credited almost instantly. Prompt mobile lending and mobile payments are among revolutionizing trends in the fintech industry. Forward-looking startups in the finance sector have already embraced mobile lending and crowdfunding opportunities in fintech.
In spite of these fintech heydays, we need to acknowledge that fintech risks and opportunities in the financial sector go hand in hand. This calls for aggressiveness in mitigating risks as well as seizing the opportunities.
Fintech Opportunities & Data Analysis
Fintech potential is only fully realized when data is accurately analyzed and interpreted. Unless data is applied in new practical ways, it cannot be useful for decision making. Data analysis provides companies with unparalleled visualization of the fintech challenges that can affect business performance. This is the surest way to seize the opportunities presented by the new technologies.
Consistent data analysis is what helps enterprises to keep up with the ever-growing fintech risks and opportunities in the financial sector. Data-driven decisions are pivotal in planning and avoiding risks that could send fintech startups’ fortunes plummet.
2. Crowd Funding
Since May 2016, crowdfunding platforms opened up to regular investors as Title III came in to effect. Ever since close to $3 billion has been raised annually through the platform. This is one of the fintech opportunities whose potential is yet to be fully exploited.
It’s interesting that today you can set up a crowd-funding platform with no product at hand and receive and send money. It is estimated that by the year 2023, over 1.3 billion users will be using mobile payments. As investors eye for crowdfunding, they should be aware of the fintech risks and opportunities in the financial sector that could affect crowdfunding in the future.
It’s unbelievable that with all these technological advances, Federal Deposit Insurance Corporation (FDIC) December 2020 report indicated American’s use of banking services was at a record low of 5.4%.
This depicts there are multiple opportunities in fintech that are yet to be explored yet the technology affords consumers low-cost transactions and transparency. In view of fintech challenges and opportunities, mobile banking presents more opportunities than challenges.
In regard to government regulations and capital requirements, insurance is so much more complex in comparison to banking and other industries. Yet, it’s one of the fastest-growing industries with an estimated $1trillion market size.
The opportunities in Fintech lay a foundation for a mega-explosion in the insurance market if the players take full advantage of the opportunities ahead. Whether in lending, payment processing, or investing, the best time to jump into the wagon and grab these fintech opportunities is now as the market continues to swell.
To Sum Up
Multinationals and startups which embrace fintech opportunities stand a better chance of withstanding tumultuous business environment. If you want to hop on the fintech bandwagon, this is the ideal time to reach out offshore fintech services and reliable software development from Israel IT. We help small businesses and startups refine their products and processes by integrating fintech solutions through robust app development architectures. Contact us today for support and browse around to check our app services for financial companies.