Beginning as the underdog of the financial scene, fintech industry soon switched from struggling with competition within traditional banking systems and major banking institutions, to becoming a trendsetter in finances.
Technology is a well-known source of profit for investors throughout the years, as technology is driving innovation, merging with different industries to contribute to the overall revolution and development of sectors such as robotics, AI, automotive industry, and of course, finances, which gave birth to financial technology popularly called fintech.
Fintech soon became one of the most profitable industries in the market, with the revolution that is said to be cooking up in the following period to bring more innovation to the sector of finances.
The Revolution of Fintech Industry: How Fintech is Affecting Banks and Financial Institutions
The revolution of financial technology started out several years ago with numerous fintech startups emerging in the traditional banking industry, which started out with having these startups able to recognize weak points of traditional banking and turn these points into their own advantage.
Fintech startups were soon able to build a large user base and attract millions of users within a rather short timeframe by offering applications and services that these users found appealing due to the fact that fintech allows easier access to stock trading, lending, moving money and monetary value, as well as saving money.
Many of these startups are already counting billions of dollars in revenue, while one of the famous fintech startups, Robinhood, recorded 5 billion dollars during the course of 2018, which shows how disruptive fintech actually is.
People are nowadays relying on applications for everything they need, from shopping to ordering a ride, so it is no wonder that managing finances through apps and services offered by fintech companies is likewise appealing to these targeted audiences.
Fintech is not stopping there as many analysts are predicting that banks will soon be forced to change and modify their services and offers in order to survive the wave of fintech revolution.