Emerging Fintech Trends Are Rapidly Reshaping the Global Economy

Emerging Fintech Trends Are Rapidly Reshaping the Global Economy

by September 7, 2020
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2020 has been a watershed year for global FinTech enterprise. Unprecedented advances in financial technology have impacted the day-to-day functioning of banks, trading brokerages, and financial services across the board.

Were it not for the ‘rush to remote’ and the need to collaborate and communicate online, it is doubtful that so much emergent technology would have been implemented at breakneck speed. Geopolitical concerns, including presidential elections, peace treaties, pandemics, and trade agreements are but a few of the most pressing issues weighing heavily on society. Foremost among the changes impacting companies in 2020 was a massive influx of users on platforms. This resulted in increased transaction numbers, which in turn places a tremendous burden on existing infrastructures. The switch to digital is well underway, and for many it is now the default option.

Do or Die for Entrenched Enterprises

Online shopping, online communications, online consultations, online dating, online education, and beyond are the norm. Survey after survey confirms what we already know: an increasing number of respondents is familiar with, or highly likely to use online channels for need and want satisfaction. Person-to-person interactions have decreased markedly in 2020, and that trend is likely to gain traction well into the New Year and beyond.

FinTech is facilitating this paradigm shift in global financial activity, including banking, trading, meal services, purchasing, education, medical, and other sectors. Entrenched companies with antiquated systems of operation have struggled to keep pace with new-age FinTech solutions in their field.

It truly is ‘do-or-die’ for enterprises across the board, in an increasingly cutthroat environment where ease of use, seamless experiences, and a tailored approach to user needs is adopted. At this unprecedented moment in history, catchphrases like ‘social distancing’, ‘touchless’, ‘contactless’, and ‘virtual transactions’ are part and parcel of our cultural zeitgeist.

The switch to digital is unfolding at breakneck speed, and this is impacting most every conceivable facet of human activity. From the institutional traders in their ivory towers on Wall Street to the casual traders and day traders of Main Street, FinTech technology is reshaping the new normal. Online communications are accessible to people everywhere, thanks in large part to the massive and unprecedented adoption of mobile communications with Android, iOS, BlackBerry, Windows Phone, and other devices.

FinTech Breaking Down Barriers at Warp Speed

The rollout of 5G technology is widely expected to be a game changer for global commercial activity, connecting B2B, B2C and C2C operations like never before. Speed, reliability, and connectivity are going to result in a massive shift on the demand and supply curve, revolutionizing financial activity. This transformational change will serve as the new benchmark of excellence, rendering everything that happened before this time archaic.

The advances in digital technology, and current levels of service excellence are akin to space age exploration juxtaposed against a time when the wheel was just invented. This stark contrast is evident in the limitless applications that are possible in banking, trading, and general financial activity. For example, groundbreaking technology in trading has facilitated an era where barriers to entry – costs, fees, and commissions – have been slashed to near-zero for most operators.

Trading is but one area where customers are benefiting from FinTech developments. It is entirely possible to fast-track deposits, trades (purchases and sales), and cash outs in double-quick time. The onset of the pandemic was a wake-up call to industries wanting to stay alive, competitive, and profitable in the new age. It comes as no surprise that trading and investment brokerages rushed to cut costs of doing business, in an effort to try and retain clientele, and perhaps even grow their businesses.

Older companies which may have been reluctant to follow suit soon found themselves playing catch up with new-age trading platforms offering their services at a fraction of the cost of entrenched operations. FinTech companies are nimbler, more dynamic, and more likely to provide the solutions traders and investors are seeking in today’s times. It’s a tough balancing act for many companies trying to retain the relationships that bind their customers to them, without alienating them through the adoption and implementation of new systems, frameworks, and technologies. Learning how to navigate this complex minefield is a two-way street for customers and corporations alike. The adoption of new technologies, practices, and procedures is invariably laden with challenges. Fortunately, our collective desire to rise above the melee and embrace technology has trumped our natural resistance to change. We are moving forward at breakneck speed.

Democratization of the Financial Markets

As far as trading activities are concerned, huge numbers of day traders, retail traders, and institutional traders have flooded the markets with trading activity. Volatility is a tremendous driver of the financial markets, and 2020 has provided that in abundance. Nowadays, traders have real-time access to news, prices, charts, graphs, economic data, and instant executions of trades.

The democratization of trading has shifted the focus from Wall Street to Main Street, effectively ripping middlemen from the equation and allowing traders to conduct their own activity as they see fit. The shift to online trading and investing is akin to the shift from licensed taxis to Uber and Lyft, or from hotels and motels to Airbnb. Society is embracing technology for the betterment of all, and this liberalization is allowing economies of scale to flourish all over the world. FinTech applications are limitless. Clients don’t need their erstwhile Bureau De Change to buy and sell FX, you can simply use a forex broker like FBS and get better results, instantly.

Traders understand that the exigencies of the current time require out-of-the-box thinking. To this end, certain assets are in demand, while others have lost favor. For example, during volatile times, gold, JPY, USD, EUR, GBP, and CHF are preferred over general equities, and emerging market currencies. Whenever widespread instability racks the financial markets, wealth holders and investors tend to shift their resources from risky propositions to safe-haven assets.

Capital flight from emerging market countries, including BRICS (Brazil, Russia, India, China and South Africa) to European nations, Australia, New Zealand, the US, and Canada. This risk-on/risk-off approach to financial activity is made possible by way of cutting-edge technology delivered through FinTech advancements. People generally want smart B2C solutions such as SaaS for integrated activities and mobile delivery. Various APIs allow for integrated activities between third-party programs and platforms, making for a user-friendly experience.

The FinTech Supernova on the Horizon has Arrived

Barely a few years ago, when Bitcoin exploded onto the scene, all the hype about blockchain and artificial intelligence was a theoretical supernova on the horizon. Today it is a reality being embraced by the world’s premier banking, trading, and financial companies. It’s not enough to talk about it and contemplate the pros and cons; blockchain and AI has to be implemented if a company hopes to remain competitive in the 2020s and beyond. The proof of FinTech adoption is available for all to see.

Across Europe and the Americas, widespread increases in FinTech apps have occurred. Millions of people are now conducting their activities online, with online banking, online purchasing, online trading, et al. Companies slow to adopt this new technology will be relegated to the annals of history – dinosaurs in the modern age. Virtually anyone, anywhere can power up, and register an account at a leading Forex provider. It is possible to go long or short on Forex majors, minors, and exotic pairs, pretty much any time of the day.

Effective FinTech solutions guarantee that businesses will be best positioned for growth, and profitability, given the reality of our time. The future is not some uncertain event that we are all planning for – the future is here staring us in the face on the platforms we use, the trades we make, and the communications we engage in on a day-to-day basis.

 

Featured image credit: Image by PIRO4D from Pixabay

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