How Do We Support Digital Transformation in the FinTech Industry?

The Fintech Industry has seen some exciting changes in the last few years. AI, voice recognition, SaaS cloud services, better online banking, increased security and protection… these are just some of the latest FinTech trends that prove that there’s a lot of potential still to be reached.

Walter Code has been involved with the FinTech Industry for quite some time now, and we’re interested in sharing the most exciting things that are happening in the industry!

But first, let’s explain the essence of the Fintech Industry.

Fintech Industry Explained

The FinTech (Financial Technology) Industry is the technology and innovation made to compete with traditional financial methods in the delivery of financial services. It’s a relatively new industry that simply aims to improve the activities in finance using technology.

With smartphones in every person’s pair of hands, the finance industry has opened up to various innovations such as mobile banking, mobile investing, borrowing services, and cryptocurrency which all aim to bring financial services closer to the general public. The FinTech Industry is comprised of new apps, processes, products, or business models that are provided as an end-to-end solution via the Internet.

Key areas improved

Within the Fintech Industry, certain processes have been automated and improved. Investments, insurance, trading, banking services, and risk management are just some of the key areas that have seen innovation.

The FinTech Industry is currently one of the biggest growers and is expected to continue its growth in the time to come. The introduction of new technologies is surely going to aid the growth! This article from Toptal went into a detailed overview of the statistical changes, and estimates and can help you grasp the size of this particular industry.

Digital payments have seen rising popularity, supportive government regulations are following the trend, and the adoption of IoT goes hand-in-hand with the FinTech revolution.

Further yet, FinTech transactions have seen incredible acceptance when we take into account that mobile wallets, digital money, paperless lending, as well as the adoption of e-commerce in all segments, have become a part of our daily lives.

However, not everything is without its problems. Security became the problem in focus, as data is more accessible than ever. The FinTech industry also relies quite heavily on mobile and technology expertise, which cannot be taken for granted.

How does Walter Code contribute to the FinTech industry?

One of Walter Code’s projects is working on a payment service designed to enable payments of invoices and bills by credit or debit cards. The service itself is available for both business and personal needs, with no restrictions on the card being used (private or corporate).

The project itself serves more than 50,000 SME’s, sole traders, and large corporates in Europe, since 2011. It allows invoices to be paid to suppliers who do not usually take card payments, thereby reducing the need for late fees and helping businesses close liquidity gaps. Just to mention, we can’t get into any more details about the project due to our agreement with the client.

As we’ve already mentioned, the biggest challenges within the FinTech industry are largely connected to data protection and security. These are not issues solely connected to FinTech, but considering the sensitivity of the data involved, it is a top priority. Whether to encrypt, when, and how, along with the worry of how the data is used in the first place is the primary set of challenges.

The second set of challenges is all about integration with other systems in the FinTech world. Even though everyone works with the same, or similar, data, there’re different rules, different data formats, etc. which should be taken into account. A lot of the time we have to process large amounts of data while worrying about the performance, which has to suit the most refined requirements. So it comes down to balancing the quality of our end result with a large amount of data to take into account.

There are certain division of the FinTech market that make it a bit easier to understand all of the aspects that come into play.

The Global FinTech Market can be divided into:

  • Technology
  • Service
  • Application
  • Region

Further, each of these can be segmented individually:

Technology:

  • API
  • AI (expected to witness the highest growth rate through 2026.)
  • Blockchain
  • Distributed Computing
  • etc.

Service:

  • Payments (expected to dominate at present)
  • Fund Transfers
  • Personal Finance
  • Loans
  • Insurance (expected to grow the fastest)
  • Wealth Management
  • etc.

Application:

  • Banking
  • Insurance
  • Securities
  • e-Commerce
  • Etc.

Region:

  • Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • North America
  • United States
  • Canada
  • Mexico
  • Europe
  • United Kingdom
  • Germany
  • France
  • Spain
  • Italy
  • Middle East & Africa
  • UAE
  • Saudi Arabia
  • Nigeria
  • South America
  • Brazil
  • Argentina
  • Colombia

Potential of Fintech Industry

When we take a look back at what we’ve mentioned throughout the article, we can notice that the biggest reason for the FinTech industry’s growth is the exponential increase in usage of technology. Artificial intelligence has become the pinnacle of the industry in terms of automating processes such as data collection, information analysis, and creating customer-centric products.

Due to the large amount of sensitive data to be protected, advanced risk analytics and fraud detection capabilities are introduced, and they’re powered by AI! The increased implementation of these safety features is directly contributing to the growing share of the segment. That’s why the changes to come to the FinTech industry are so interesting to watch. Nobody can deny the large growth tech has made and continues to make.

With the increasing interest in Cryptocurrencies, e-wallets, and payment interfaces there is a lot of motive to deliver a faster and better user experience.

If you are interested in a more detailed overview of the expectations for the FinTech industry, go ahead and read this report.

Conclusion:

The excitement over the latest innovations within the FinTech industry is with us, as we meticulously work towards improving the experience of everyone involved. We could soon turn towards going completely paperless when it comes to our currencies. All of the changes that are happening are pointing towards it, and there are more and more projects that aim to revolutionize the FinTech industry even further.

For now, it’s all about dealing with the challenges that arise, solving them as we go further in improving the FinTech industry, and empowering every one of us to easily manage all things finance-related.