The Fintech Effect: 3 Trends Shaping the Future of Finance

Evolution or revolution: technology is disrupting how companies provide financial services to their customers.

Technology has been transforming finance since 1865, when the pantelegraph, which was commonly used to verify signatures in banking transactions, was invented. In the 21st century, technology that both disrupts and advances the traditional financial services sector has come to be known as fintech. And in recent years, fintech has made larger and more impactful strides in evolving the financial services structure. This includes increased accessibility to data, transparent business processes, and a focus on customer experience.

• Data Accessibility: For businesses, the accessibility gained with fintech is immediately felt within an organization. Improved IT structure and user experiences and the increased adoption of smartphones have provided real-time access to financial information and transactions at a level never before possible.The real-time updates and analyses of big data provide business leaders with unparalleled insights, which allow them to pivot their strategies at a moment’s notice. As a result, organizations can take advantage of more favorable conditions and become more strategic in their budget planning.

• Increased Transparency: Improved transparency has acted as a catalyst for fintech innovations such as blockchain and digital currencies, which have generated new value streams. Additionally, data transparency within an organization helps foster a more efficient and communicative environment. Maximizing visibility into financial processes enables greater opportunities for growth. 

• Customer Centricity: B2B customers and clients today have many of the same expectations as B2C customers. They expect the speed, accuracy, visibility and service that they’ve become used to with e-commerce companies like Amazon and Google. Now they are looking for that same level of service from finance partners. Finance providers that don’t think “customer first” in their practices and protocols will find themselves falling by the wayside.One example of how fintech is responding to the increased focus on customer experience is frictionless transactions, from purchase order to payment, which enables faster growth for businesses. These advances, no matter how big or small, are what is keeping the fintech era moving forward and focused on the customer.

Businesses today not only need to stay on top of how technology is shaping their financial processes, but how they can transfer the benefits of fintech to their customers. Real-time access to data, increased transparency, and a greater focus on the customer experience are only the initial results of the fintech effect. Business leaders need to anticipate the next fintech advances in order to successfully guide teams and satisfy customer expectations.