3 Fintech Trends Driving Innovation in Finance

by: Daniel Faloppa

Twitter: @faloppad

Financial technology is driving disruptive innovation in an industry that has been dominated by large corporations for centuries. Underlying this disruption, three trends are likely to be game changers for the years to come.

Disintermediation of banking services

The pervasiveness of smartphones and personal computers has empowered the average person to pursue their own information search — via Google, for example — rather than soliciting services from intermediaries. Social networks have compounded this trend, with the ability to search, share, and validate alternative resources with friends and the global community. Taken together, these actions have created a fertile environment for new forms of online financial solutions to take root, ultimately resulting in the disintermediation of banking services. Credit, equity capital, payments and currencies are being disrupted because of this trend.

Easier access to technology

The expansion of APIs (Application Programming Interfaces), clearer online information, and openness of financial standards (XBLR) allow companies to develop solutions for a vast array of previously-proprietary markets. Something as simple as a mobile app allowing users to send payments directly by phone can have significant consequences for market incumbents.

Big data and new data

As better ways to store, analyze, and search vast amounts of data are emerging, FinTech companies are looking for ways to utilize these means for financial purposes. Usage of big and new data can and will improve investment decisions, credit scores and fraud control.

As one of the biggest in the world, the financial industry is of course the target of deep innovation and disruption. These trends are empowering small and medium companies to do exactly that. It will be an interesting market to watch in the coming years, and of course here at Equidam we are following it very closely.

Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this innitial abstract are invited to share and like it so that it may be featured in a longer version that will published in the FINTECH Book due to be released November 2015.

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