How is FinTech Disrupting Businesses Across Industries?

In recent times, FinTech has influenced the way businesses performed across industries. If a mobile wallet, internet banking, a UPI application or an online portal to purchase credit cards or insurance policies used by anyone, means he/she has experienced fintech in action. Fintech (Financial Technology) is nothing but leveraging the power of technology to provide better financial services to customers. This could include a credit-based loan distributing company, an online insurance policy vendor, a marketplace or an aggregator for it, a UPI service provider, among others.

Considering reports, the fintech industry is expected to reach US$26.5 trillion by 2022. Thus, taking advantage of this thriving market and the evolving technology, organizations worldwide are making their entrance to the fintech bandwagon.

Looking at global numbers of fintech players, the United States alone houses more than 5,700 fintech startups, followed by Europe, Africa and the Middle East with a total of 3,583 startups. Conversely, the Asia Pacific has 2,849 fintech startups. Now in Latin America, fintech startups are rapidly becoming unicorns. Fintech has been embedded in the financial services ecosystem over the past few years. And the term now has made its way into today’s daily lives and several industries.

Industries Influenced by FinTech

Fintech adds liquidity to the market as it enhances the ability to match investors, lenders and borrowers. In this way, innovative financial services such as robots-assisted advice have the potential to outspread financial advice to the individuals and more sophisticated investors, even to a wider cross-section of the community.

Healthcare

Fintech, which is transforming the business of banks, is now shifting to the healthcare landscape. Fintech offers new and unique opportunities to healthcare such as electronic billing, online payments, payment management, patient data, access to data, movement of data between systems, decision making capability using big data, personalized medical care and much more. It also allows companies to integrate insurance and lending facilities as part of their healthcare ecosystem. With new innovative financial technologies, managing healthcare payments are becoming easier day by day. Also, it is empowering patients and customers by offering them 24/7 access to their data as well as analysis.

Retail 

Retail is one of the industries that has been influenced immensely by the fintech. With the rise of mobile wallets and online payment systems, it has enabled retailers to establish and utilize an omnichannel presence for their customers. The modern financial technologies also allow customers to shop online or offline, with the help of their smartphone or tablet. They can also fulfill their requirements by using their credit card, debit card, UPI app, digital wallet or even with pay later option if they have a good credit score. Fintech alongside emerging payment technologies can also improve customer experiences by establishing the cornerstone of retail’s renaissance.

On-Demand Market

The on-demand market is also one of the industries of recent origins, which is largely driven by fintech. The rise in the millennial ideology and complementing technology have opened the way for the on-demand market to offer a seamless experience to customers. The market has influenced by fintech as it allows real-time payments to vendors and marketplaces. To reach the service providers, earlier it took up to 3 or 5 days for the payment, but now it happens in real-time. Booking a cab or ordering food can be a better instance of the on-demand market as here people can get instant money transfer and invoice generation facilities.