Financial technology or fintech is completely revolutionizing the financial services sector. In the blink of an eye, extremely meaningful changes are sweeping through the industry. The level of investment in fintech has risen to the billions and is continuing on an upward trajectory. To keep you informed and up to date, Freedom Debt Relief reviews the fintech revolution.
Fintech is broadly defined as any time technology is used in the delivery of a financial service. This definition encompasses a lot of different things, ATMs are an early example of fintech. Fintech includes peer to peer lending, mobile banking, online mortgage shopping, cryptocurrencies, and more.
Freedom Debt Relief Reviews What Started the Boom
The Great Recession set the stage for the explosion of Fintech. Financial service providers of old were blindsided by the crisis and also slapped with heavy regulations. Meanwhile, consumers became fed up with the same old system. While this was going on, many other industries were seeing huge changes. Uber, Airbnb, and Amazon were innovating and changing the game completely.
Freedom Debt Relief reviews the same opportunity arising in the financial services sector. Modern consumers expect convenience at the tips of their fingers (namely, their smartphone). Small companies, not hampered by regulations, gave people what they wanted by making radical innovations.
Freedom Debt Relief Reviews Big Companies Response to Innovation
Traditional big companies can fall behind if they fail to realize the industry has fundamentally changed. Just look at what’s happening in the automobile industry. While Google, Tesla, and Apple are on the front lines of creating self-driving cars that will change the industry forever, the big manufacturers continue with business as usual. They bring out an updated, but similar model each year. The banks do seem to be trying to avoid this trap. Big banks have come together to recapture the personal payment market with an app called Zelle. This app seems to be a direct response to the popularity of personal payment apps such as Venmo, Square and Apple Pay.
Freedom Debt Relief Reviews the impact the Fintech revolution will have on consumers
Again, modern consumers want and expect to be able to do everything on their phone. They now feel the same way about their financial services. The beauty of Fintech is the barriers it knocks down. Millions of people who once did not have access to financial services are now being properly served. Whether it be financial advice, pre-approval for a mortgage, or receiving funds the playing field is being levelled.