Fintech or Financial technology is the explosion of technological innovation and globalization in the finance industry. The future of Fintech is limitless due to its untapped potential in the delivery of financial services.
Its major prominent applications are mobile payments, online banking, automated investment apps, cryptocurrency, online lending businesses, and crowdfunding platforms. Fintech emerged in the 21st century and has amazingly brought less dependency on the traditional or mortal-and-brick financial transactions system
This is known to be one of the greatest revolutions that have provided a democratic global stage in the world of finance.
Fintech has made a lot of positive impacts in the finance industry. One of the major problems in the world of finance is fraud. Fintech had been used to combat this effect and the war is still on-going with very noticeable progress.
Though Fintech has created seamless and unique customers’ experiences, there are a few challenges that need to be overcome. The challenges are mostly associated with the traditional system of financial transactions.
1.Innovation- Innovation is the main strength of the industry. It requires a consistent flux and upgrades. Without these, it is easy to lose the human aspects of the financial services. The customers’ experience should be the top priority for upgrading.
2.Regulations- Fintech demands the management f regulatory risk and compliance. This covers global regulations, anti-money laundering, the policy of “ Know-Your-Customer (KYC)” and general compliance regulations.
3.Competitions- This is where credibility, trust, bank partnership, de-risking, and customers’ expectations play a huge role.
4. International expansion- The place of international expansion cannot be overemphasized. It has to do with the network of the Fintech companies. It provides access to “For the Benefits of “ accounts (FBOs) and International Bank Account Numbers (IBAN).
The challenges are enormous but consideration for the following would go a long wat to overcome them;
-An effective content development strategy
-Potent distribution of content / Influencer Marketing
-Constant improvement of services (customer-centered)
-Effective education for the customers and creation of awareness of the concept f Fintech