Fintech to Redefine Real Estate and Insurance Industries
By Joshua Solesbury
Wait a minute … I thought FinTech was just in finance? That is what it seems at a glance, however, take a closer look and you will see that FinTech has far reaching influences especially when it comes to insurance and real estate.
In the past few years, FinTech has begun to expand in every direction through disruptive breakthroughs largely pioneered by startup companies. FinTech companies are bringing real solutions to an ever-changing and growing customer base. This gives the customer the power to meet his own needs without the use of traditional financial institutions. FinTech companies provide new services which reach clients through technical applications. As our generation is driven by apps, this progression seems only natural. The rise of digital finance means consumers have access to information anywhere and anytime. Currently, the business world is seeing fintech becoming a trend in two main industries: real estate and insurance. Not only is fintech beginning to populate these industries, but it is also completely reshaping them.
Real estate is increasingly turning to fintech solutions as tech-infused real estate startups are becoming really attractive. Opendoor, a San Francisco start up that leverages an online platform for home buying and selling, just raised another $400 million at a valuation just above $2 billion. Moreover, other startups such as Cadre and PeerStreet, in addition to mainstream firms, have added digital platforms for home viewing, mortgage deals, and real estate investment. Not to mention platforms like RealtyShares that allow you to crowd-invest in real estate projects.
Insurance is moving towards “Insuretech” and the decades old payment and processing structure is now being turned on its head. New digital platforms and AI can help insurance providers efficiently manage and prioritize claims. Also, there are many who see Blockchain as a future component of this industry. Blockchain-based concepts such as smart contracts could to begin completely automate insurance payouts.
In conclusion, FinTech is big, but getting even bigger. Next time you’re looking into a business or industry, take some time to analyze its core technology and it is all but guaranteed that FinTech will be on its way there, if it isn’t already.
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