FinTech: Innovative Solutions for the New Generation
- Written by TechXO Team
- Category: Fintech
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As multitudes of consumers and individuals move from conventional banking services to new and innovative FinTech options, huge opportunities and avenues are opening up to give them more personalized and predictive FinTech solutions that deliver more engaging user experiences and help consumers better manage finance. With new and exciting solutions in categories such as alternative lending, cryptocurrency, and distributed ledger technology, social payments, predictive financial wellness, and wealth management solutions, there is a slew of new and disruptive solutions emerging every day. Not only do these constantly challenge traditional means of handling finances, but they allow for an array of options to exist to individuals who feel as if traditional banking is too difficult to understand
New-age consumers are technologically forward, given the huge integration of technology within multiple systems, and are increasingly embracing FinTech globally. Integration and application have grown doubly from 16 percent in 2015 to 33 percent in 2017. Over half the banking executives at traditional financial institution feel threatened as multiple companies create innovations currently unavailable to their systems.
FinTech startups have the immense capability to alter the landscape. However, before you gather some friends and make the next successful FinTech startup, there are some integral strategies you need to keep in mind, a vision to establish, and harsh realities to consider before breaking into the market.
The ultimate advantage that FinTech companies have is that when you allow deeply personalized user experiences to exist, you have access to a plethora of data and analytics at your fingertips, waiting to be analyzed and integrated in order for you to strengthen your proposal and push more successful marketing and engagement strategies for both current and new users.
Analyzing the trends of FinTech
There are a few ways to dive into the FinTech industry and unveil strategies and avenues for the company. Whether these are new ways to offer traditional services, or flat-out disrupting the market with new ideas, it is up to new startups to decide.
Recalibrate conventional economics
The traditional way of offering financial services can be tedious, inefficient, and incredibly expensive. Digital technologies are changing the way we see systems and processes. The introduction of non-traditional business models, like ad monetization and referral commissions, make it possible to offer these products and services for free.
Technology can also lower costs overall for FinTech startups, whether that means cheaper and more efficient consumer and user acquisition and engagement, a minimization of operational costs, or the ability to offer enticing, innovative, and non-conventional applications at incredibly affordable rates.
Looking for the missing link
Artificial intelligence and machine learning have allowed multiple industries to integrate more smooth and efficient details to the way they run their systems. This also means that there are new ways for FinTech startups to assist their consumers in improving their financial status and processes. Predictive analytics allow consumers to find new ways to invest, save, allocate resources, manage how they spend, and more. Today’s consumers crave for more personalized and individualistic applications and actively look for innovative solutions to help manage their finances and create better financial outcomes.
Traditional financial institutions still offer multiple advantages for consumers. It is incredibly difficult to win over consumers, especially those from the older generation, who have become accustomed to using these traditional financial institutions. Because of this, collaborating with these older institutions can open up new opportunities for both those who invest in Fintech and those who stay behind with the older, more established companies. FinTech companies are able to integrate technologies that offer these traditional corporations competitive advantages in an industry where consumers are demanding more technologically forward solutions.
Whether it’s a partnership or a joint venture, this kind of relationship is a frequent launchpad for successful FinTech startups, often leading both the startup and the partner, more traditional corporation into greater success.