According to FinSMEs, the whole FinTech industry will reach $320 billion in 2022. This explosive growth is partly due to the increasing demand by consumers and businesses for more efficient, cost-effective, and secure financial services.
Fintech companies can provide these services by leveraging new technologies such as big data, artificial intelligence (AI), and blockchain.
Here are the top 7 FinTech sectors:
One of the central areas of focus for financial technology companies is payments. That includes everything from processing payments for merchants to providing mobile payment solutions.
Any business can provide various payment options with the right hardware and its corresponding software the right hardware and its corresponding software, any business can provide various payment options.
These are some innovative solutions offered by FinTech companies.
- Payment processing
The lending sector is another area that is seeing significant growth due to the rise of fintech.
Here are the most popular lending solutions offered by fintech companies:
- Peer-to-peer lending
- Consumer lending
- Home improvements
- Car purchases
- Small business lending
3. Wealth Management
Wealth management is a crucial area of focus for fintech companies.
Here are some wealth management solutions offered by fintech companies:
- Investment advice
- Financial portfolio management
- Asset management
- Real estate
Fintech companies are also starting to get involved in the insurance sector. Funding for these types of companies grew in 2021, almost doubling its funds compared to 2020. They were able to raise $15 billion. They offer services from providing insurance products to managing insurance portfolios.
Some of the most popular insurance solutions offered by fintech companies include:
- Car Insurance
- Home Insurance
- Life Insurance
5. Trading and Investing
Trading and investing are where FinTech really shines. These are areas where they can leverage technologies such as big data, machine learning, and AI. Through these, FinTech companies, small-time investors, or even retirees can make better decisions based on the information they collect.
The best example of using technology as leverage is utilizing AI-powered bots. These are called arbitrage bots. These bots buy and sell for you and can scan through other exchanges and make trades to take advantage of discrepancies.
Arbitrage bots are most popular in crypto trading as prices in crypto are volatile. These bots trade in that volatility to make you profits, and it’s all automated.
These are other trading and investing solutions offered by FinTech companies:
- Investment banking
- Stock trading
- Forex trading
The banking sector has evolved a lot in recent years, thanks to the rise of fintech. Fintech companies can streamline our banking experience.
Here are two solutions in banking that FinTech companies innovated:
- Mobile and Online Banking
- Remote Deposit
RegTech is also on the rise as new technologies emerge. That refers to the process of using technology to help financial institutions comply with regulations. Using technologies like big data and AI made it possible to regulate FinTech innovations.
The following is what RegTech does:
- Fraud detection
- Compliance monitoring
FinTech, Changing Our Lives for the Better
FinTech is altering our lives for the better, from the way we bank and invest to how we shop and travel. The rise of FinTech has been made possible by the emergence of new technologies such as big data and AI. These technologies have allowed fintech companies to provide more efficient and cost-effective banking and investing services than traditional financial institutions.
As a result, FinTech is quickly becoming the go-to choice for consumers and businesses looking for innovative financial solutions. Are you ready to join the FinTech revolution?