
Fintech is disrupting and reshaping our lives
The financial sector has seen massive changes through technology. We may now have the last generation who remembers a time when banking transactions were solely carried out on bank premises, or through onsite ATMs, when even a simple task like checking a bank balance included a trip to the bank itself. A paradigm shift in banking came with the advent of internet banking in the 1980s, and its meteoric rise in popularity in the 1990s.
The rising popularity of internet banking, coupled together with the rapid development of technology and the increasing value of time, paved the way to a myriad brand-new services being offered to people through internet banking. The development of smart phones and their subsequent affordability further enhanced these services, enabling people to manage their portfolios through simple and secure mobile applications.

Today, not just the non-traditional banking players, like the large technology firms such as Facebook, Google, Ant Financial, WeChat, WhatsApp, Uber and even the startups who are technology first are disrupting the traditional business models and are offering financial services at the convenience of the modern day customers.
What drives Fintech
The gap in what banks were able to offer compared to what their customers had come to expect, particularly when it came to speed, convenience and user experience is what the FinTech revolution is tackling. There are a few major movers behind the advances in Fintech revolution. Other than obvious culprits such as the widespread availability of internet, and general advances in technology we can identify the following:
Mobility
Mobile technology not only covers the world and connects people and financial institutions together, but enables customer to make payments on the go, or carry out more complex transactions such as setting up savings plans. Customers are not able to access financial services offered by technology driven companies anywhere and whenever they want. This has created a huge opportunity for inclusion of traditionally untapped market segments.
Availability of customer and financial data
The rise of social media and mobile technology has inevitably led to the creation of a large volume of customer data. While there are concerns of privacy and fair usage, for the sake of this discussion we will focus on the insights this gives financial institutes about their customers, enabling them to provide better, more personalized services.
Machine learning and AI
Through machine learning and AI solutions, the big chunks of data received can be analysed and translated into information about customers. Enabling financial systems to carry out immediate risk assessments, and calculated decision making, providing value and security to both clients and institutions. By using advancements of AI, Big data and machine learning, Fintech companies are now able to offer the same or even better services at the fraction of a cost which attract the Gen X and Z customers.

Where are we headed?
Fintech has already made huge impacts on our lives and is continuing to make greater strides in changing the status quo of everyday living. A few examples of this can really bring home how much has changed since the days of brick and mortar banking.
Consumer banking
Nothing shows how much the financial world has changed as the ability to carry out almost every banking operation either at home or on the move without the necessity to visit a building. Providing better services to consumers is what brought about the initial disruption, and it is continuing to drive it forward. Smarter mobile banking applications even help consumers apply for loans or plan for retirement, all through the use of technology.

Daily transactions
Mobile wallets now provide us with the ability to make payments at multiple outlets further reducing the need and danger of carrying money or credit cards. One can simply transfer money from multiple accounts to a mobile wallet and conduct transactions at vendors or even with other users using QR codes or NFC. Paying at restaurants or even splitting a bills among friends can all be done without pulling out a wallet.

Small businesses
The introduction of online payment providers and card payment providers such as https://www.paypal.com/fr/home and https://squareup.com/us/en was a major stepping-stone for individual and small businesses. The ability to handle payments effectively and also online, opened up new markets and brought in investment to much needed areas. The traditional banks are also moving towards SME banking and offer integrations to the accounting and Payroll software with the use of financial API’s. Using these API’s telco companies are also using this opportunity offer services such as micro loans, and pay day loans to their existing large pool of customers instantly.
Investment
Fintech is even changing the way that entrepreneurs think about finding investors to back them. Companies such as https://www.become.co/ provide entrepreneurs with the ability of requesting investment through the use of online applications and complex matchmaking algorithms. Easier and impartial access to capital means more entrepreneurs can bring their ideas to the market, potentially bringing more benefits to us all.

Home rental
Companies such as https://www.theguarantors.com/ use Fintech to provide people with the ability to rent a house, by signing up with their services. They provide an insurance to the homeowners, enabling the new renters access to accommodation without even needing their own guarantor. Their systems analyse and provide information on the renters and the risks entailed and follow up with payments, even sending notifications where needed.
Better accounting and financial management
Finally, at the end of the day, you can now analyse your portfolios and plan for the future, ensuring you meet your financial goals, with all the information that’s ready at your fingertips.

Changing the face of money
Facebook now has almost 50 regulatory licenses in the US alone and recently got its financial services license from the Central Bank of Ireland. These licenses allow Facebook users to transfer money to each other using the messenger app. Alibaba’s financial arm, Ant Financial — launched in 2013 a money market fund called Yu E Bao that has now become the biggest money market fund in the world with over US$160 billion in assets under management, displacing incumbents who have been dominating for decades.
As Fintech continues to evolve, it could soon be that we will see the end of money as we know it, with the introduction and popularity of crypto currencies. Due to being a trust driven industry, financial regulations and high expectations from consumers hold back risky disruptions in the financial industry. However, seeing how much has changed within the last decade, we can look forward to what the future may bring.

