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The Smart FinTech company was born in 2010 when some businesses didn't even plan to provide their services online. See also: phases of project management. Currently, the situation is absolutely different, so the demand for fintech solutions has grown significantly.
There are numerous technologies that you should be aware of. We would like to reveal their features and benefits so you can decide whether they are worth your attention or not.
Fintech is a concept including all digital solutions for the finance market (online banking, online payment services, crowdfunding, blockchain and cryptocurrency, online lending apps, and so on). We are sure that you are not aware of some of these technologies.
The most enterprising companies are eager to implement modern solutions because they know it is the only way to improve their service and increase revenue. So, our specialists are going to describe the most popular developments and explain to you how they can make your company more competitive.
The goals of Smart FinTech are as follows:
Creating top-notch products, which meet all your requirements. Great experience and awareness of current market trends and demands allow us to develop excellent solutions.
Increasing your income. No, we can’t manage your company’s processes but we are able to create wonderful fintech systems, which will give you new growth opportunities. Thanks to our efficient digital products, you’ll speed up your service and its quality.
Attracting attention. First-class solutions, which correspond to your corporate identity, definitely attract not only new users but also competitors. You’ll observe the desire of market players to cooperate with you or be like you.
Fintech systems are darkly connected to Big Data and Artificial Intelligence. The first technology helps to collect data about customers while the second one is designed for analyzing the gathered information. We’ll tell you how different technologies interact with each other and in which cases they are useful.
Often financial companies are first in trying and implementing new fintech services. A good example is PayPal. This system sprung up in 1998 and became incredibly popular very soon. The main reason is that it was a unique product, first in the market. Maybe, your decision about developing a fintech solution will be crucial for your business to improve its competitiveness in the shortest time.
Unfortunately, unawareness restrains numerous entrepreneurs, so we would like to explain some concepts and reveal effective ways to launch modern systems. Your understanding of current trends is one of our aims.
Thus, subscribe to the blog in order not to miss new materials about the most popular financial technologies.
Digital Horizon presented the study "Fintech Trends 2022"
Experts told how we will pay within the metauniverses, what will replace big data, why the world needs total tokenization, and what role fintechs play in the implementation of the ESG agenda.
“2021 was a year of a big qualitative shift in the global economy and set new development vectors for the fintech market. We have all witnessed how the ongoing pandemic and increased social pressure have led to a significant expansion of opportunities and applications for fintech solutions. At the same time, while working on the report, we once again clearly felt how much more difficult it has become to separate what are really long-term trends from the hype. In this study, we detail seven key fintech trends that Digital Horizon is betting on,” says Alan Waksman, founder and managing partner of Digital Horizon.
After analyzing the ongoing events, a team of venture market experts identified seven new vectors for the development of financial technologies.
Trend 1: Democratization of the market of non-public assets
Private equity marketplaces, wealth management tools, or financing of new business models, including digital assets, these and other solutions make the private equity market more transparent and open up new opportunities for retail investors to earn more.
What will happen next? It largely depends on the regulators: either they will limit the access of mass investors to the market of non-public assets, or they will be able to find a balance between people's desire to earn more and concern for their financial security. With more and more assets going digital and being tokenized, in practice, regulators will have to learn how to deal with the new realities, not just issue more bans.
Trend 2. Products for the self-employed
The pandemic has accelerated the introduction of a project format for cooperation between companies and independent contractors, including highly qualified specialists. At the same time, the self-employed, as well as small and medium-sized businesses, face problems in obtaining financing: most banks do not know how to work with those who have unstable income. To solve this problem, fintechs are taken. For example, transaction-based scoring and credit solutions on freelance platforms or risk management and financial stability tools.
What will happen next? Digital Horizon experts are confident that the principles of products for the self-employed will be transferred to the mainstream and will generally change approaches to scoring and funding decisions.
3. Fintech for open ecosystems
Open ecosystems that bring together independent players have become a new distribution channel that helps counter marketplaces and other types of centralized platforms. The focus of competition has shifted from individual product features to data competition, speed, and ease of embedding. This was reflected in the active development of universal checkout services, embedded products for investment and a new layer of ecosystems based on fintechs.
What will happen next? If independent players continue to unite, the fragmentation of the financial market and the specialization of fintech solutions will increase. On the contrary, the gap between leaders from closed ecosystems, centralized platforms and marketplaces will grow.
4. Post-big-data era
The world has accumulated a huge amount of data, the storage of which requires a lot of energy, as well as other resources, in order to ensure security in accordance with the requirements of regulators. However, the information collected is often not representative. To improve the quality of analytics, technology companies are developing a more selective approach to data - taking into account user scenarios. Fintech solutions are developing that use synthetic data, audit information, or specialize in processing certain types of data.
What will happen next? Or there will be a monopolist - a centralized system that will know everything about everyone. Or specialization in data processing will increase, and consumer companies will buy signals that have weight in a certain scenario.
5. Tokenization of the real world
The real sectors of the global economy need additional funding to overcome the crisis caused by the COVID-19 pandemic. However, the capabilities of traditional banks are limited by the requirements of the regulator regarding capital adequacy. To attract alternative funding from institutional and private investors, the real sector will have to restructure and tokenize existing illiquid assets. The infrastructure for the digitization of rights and transactions with new asset classes is already being built.
What will happen next? Digital Horizon experts are convinced that tokenization will be deeply integrated with other business processes, which will allow creating new financial products to solve non-standard cases.
6. Fintech for the Metaverse
In the metaverse, consumption occurs in real time and is not limited to one platform. To make this possible, we need an infrastructure that will ensure interoperability. And its foundations have already been laid by open ecosystems. Metaverses also provide users with enhanced options for personalizing interactions. Therefore, there will be more financial products that are embedded at the request of the user. The segment of solutions for managing reputation data will also grow.
What will happen next? It depends on which path the creators of the metaverses choose: completely decentralized, when, in accordance with the principles of Web 3.0, the rights of users to manage data and content are expanded, or more centralized, when control will be on the side of developer companies.
7. Green fintech
Today, as part of the ESG agenda, governments are adopting programs to achieve carbon neutrality, industry is rearming, and investors are more actively supporting green projects. The fintech industry is also actively responding to this public demand. For example, it introduces "carbon calculators" that calculate the user's personal carbon footprint, embeds automatic deductions for ESG goals in payments, develops products for "green" investments and alternative b2b lending.
What will happen next: "green" fintech will become mainstream, the only question is how quickly: in three to five or 10-15 years. The trend will accelerate if regulators and society require ESG resilience parameters to be used in scoring and credit models and thereby influence funding decisions.