At its core Financial Technology, also known as FinTech, is an industry focused around utilising software to provide financial services in innovative ways. Many startups within the industry were created with the intention of disrupting the financial systems currently in place and their products. The financial services offered within FinTech vary widely, covering traditional areas of finance including investing, lending, and payments, but also novel inventions such as P2P lending and crowdfunding.
Though Financial Technology is still a fairly young industry, investment to the sector is increasing significantly year-on-year as investors become aware of the benefits on offer. This is mainly due to the consumer-driven nature of FinTech, where many of these new businesses are built on the basis of solving consumer problems and easing pain points.
While some of the original FinTech companies are now reaching maturity, many of the industry players are still in their infancy, and it is therefore difficult to measure the full effects of these new technology-driven organisations on the business environment. Once we have been through a full financial cycle we will know more about the future of the FinTech industry.
But the race is now on for FinTech start-ups and every growing company is chasing the notion of creating world-beating technology aiming to revolutionise the financial service sector as we know it.
This means that for SME’s, there is not a shortage of choice in the financial market. Flexible, bespoke and speedy facilities are available everywhere and provide an innovative alternative to banking that big businesses are unable to provide.