Financial technology (FinTech) industry is expanding and growing at a an often alarming rate.
The speed at which technology is changing affects how we conduct our lives day-to-day. It’s also affecting the way we manage our money, save, protect, and invest our wealth.
What worked great some weeks ago was most likely to work in the present, too…but the savvy financial planner will double-check just in the event of.
The world’s financial technology industry was already ahead of its time to becoming a household name prior to the outbreak of Covid-19 which led to forced lockdowns beginning in 2020. At present the total amount of FinTech marketplace is expected to be close to $310 billion this year.
The amount of companies in the field of financial technology and people that are impacted by the fast growth of FinTech to the center stage is growing beyond. Just a few examples could provide useful information. Even the common person has to be aware of the latest developments in technological transactions in the financial sector.
1. Rocket Dollar: Alternative Retirement Investing
In the past the most popular method of saving money to save for to enjoy the Golden Years was to invest in an IRA. The money is put there or in bonds, stocks or a combination of the three vehicles of financial technology.
While these investment options are tried and tested but not all have the same rate of return of investments (ROI). In addition the majority of traditional investment firms prefer to take an “wait and see” approach to emerging opportunities like financial technology.
The potential for significant ROI is lost over time when the latest offerings are analyzed.
To give an example, Rocket Dollar is a top alternative investing platform which is able to change quickly and make the most of opportunities that are emerging like cryptocurrency startups, or even non-traditional instruments like real property.
Rocket Dollar customers use an IRA in order to spread their investments it is always a wise method. They also benefit from profitable ventures , whose sole drawback is their relative newness. For investors who are more daring it makes sense to explore emerging markets, and also keep their investments flexible.
2. Cash App by Square: Addressing FinTech Payment Safety Concerns
We could be well on our path to becoming a cash-free society before 2020. But, mitigating the threat of serious illnesses caused intense, focused attention to the issue of how we were dealing with and transferring cash for our everyday needs.
Many consumers are hesitant even when they tried the idea of using debit cards. The few finger strokes needed to enter the four-digit PIN on the checkout keypad was to be too many. A greater investment in touchless modes of payment swiftly was a fact.
The amount of transactions in the market for touchless transactions encompasses all the major competitors you’d think of. Visa, Mastercard, Google Pay along with Apple Pay leap to mind.
One app that might have escaped your consideration it is the Cash App from Square. Square is already an FinTech firm however, its third-party payment application is unique because it permits users to utilize their existing debit and credit cards. It also accepts Bitcoin. In this day and age of privacy concerns The Cash App offers something sure will appeal to a lot of people and that is the ability to pay for others Cash App accounts anonymously.
3. Samsung: Enhanced Reliability via Blockchain
The well-publicized data breaches could have caused more harm to confidence in the consumer than the Covid-19 pandemic.
This is a huge statement, however, it’s safe to say it is clear that for FinTech in the next year as well, there needs to be a unified focus on improving security and privacy. Consumers have finally voiced their concerns and demanded to have control over who is allowed access to their information, and that firms effectively guard against identity theft and asset theft.
In addition, those who are afflicted by data breaches have shown an increasing desire to write checks on paper. They’d prefer to do this rather than put their financial assets in jeopardy. The first days of FinTech could have been somewhat like that of Wild West of the 1800s. Nowadays, people are eager for law enforcement to make their way to the FinTech frontier. Enter Sheriff Blockchain.
Investors Coming to Admire Blockchain’s Immutability
Blockchain is a secure way to move money and other assets across the internet. The increased security has enabled it to draw in large amounts of money by Walmart, Microsoft, J.P. Morgan, Amazon, and PayPal as well as other big-hitters.
In simple terms, blockchain technology is an unchanging, immutable, and irrevocable document of genuine financial transactions. Connected by a peer-to-peer system Blockchain technology is invulnerable to server malfunctions and (perhaps more importantly) criminals.
Samsung South Korean conglomerate Samsung is famous for its early use of blockchain technology. It has also devised innovative methods by which they have brought innovative platforms and products to market. Based on blockchain technology and secured by it, Samsung has already put out an enterprise platform that they refer to as Nexledger. They’ve also designed an electronic wallet that works with Galaxy phones. Cello Trust is a blockchain platform that tracks shipments throughout an entire supply chain.
If Samsung is able to significantly improve profits and cut losses by using blockchain technology and other blockchain technologies, expect the rest of the major players to quickly jump to join.
4. YOLOrekt: Using Machine Learning to Gamify Stocks
Many people who are or close to retirement might be hesitant to adopt AI due to watching the Stanley Kubrick film “2001: A Space Odyssey” in the theaters. For younger people, AI and ML might bring up visions of Skynet computers creating massive robot armies that have Austrian accents.
However, those exact advanced-tech-averse users do seem to appreciate the convenience of smartphones. They do not mind making use of chatbots on websites. They are enthused by gadgets designed to “learn” how they typically communicate and provide suggestions based upon their usage patterns.
It’s also a sure bet that despite the fact that they’ve seen many science fiction movies investors would be thrilled to know that AI could help them boost the value of their financial investments. About a year ago, a business was awarded $1.75 million in funds to help bring AI into the realm of investing.
YOLOrekt is based on the game-based approach to stocks to forecast prices. It has received a lot of attention in FinTech. It is similar to “educated betting,” so the results are not certain. The interface however makes betting on the stock market simple and enjoyable for everyone.
The (Probable) Future of FinTech
The past two years have proved to be a bit of a wake-up call regarding making definitive predictions. However, the four large-picture trends that are highlighted above are almost certain to take off over the next few weeks and months.
Consumers don’t want not be able to take advantage of lucrative investments because they don’t “fit” into a traditional portfolio. Also, they do not would like to compromise their security. Instead, they want to work with businesses who protect their assets and privacy. They are looking to work with businesses that make use of technology responsibly in order to improve their lives and more prosperous.