Covid 19 has definitely been a trigger for a number of changes within many business sectors, especially the ones who were relying on bulky and complex financial architectures (i.e. commercial property auctions, mortgages and other real estate-related processes).
Although certain scenarios are still pure speculations, let’s try to break down what will happen in the future of financial technology after this global pandemic.
The Fintech Revolution
According to PWC global investments in FinTech more than tripled in 2014, reaching more than $12 billion. In comparison, banks spent an estimated $215 billion on IT worldwide in 2014, including hardware, software, and internal and external services. This is a material number, and because it is so highly targeted, the FinTech spending will really make an impact. These figures DOUBLED just in the past 3 months, confirming the fact that fintech is here to take over traditional ways of doing finance, after the pandemic.
Fintech is currently looked like one of the most valuable financial assets of 2020, with a net 30% growth in comparison to last year’s predictions.
The Usage Of Data
When it comes to data, there are many things we can consider. The fact that it has become the most valuable asset on Earth, should be the foundation of our assessment. According to this Forbes study “Customers place high expectations in the way they want their banks to interact with them. With the increase in customer volume, it has become difficult for banks and other organizations to fulfil the demands of every customer.”
Big Data helps organizations to acquire a 360-degree view of their customer. It provides them with necessary personal information, transaction history, browsing history, and other relevant information helping the organizations in creating customer segmentation. Big Data also helps in making marketing decisions that can bring a remarkable increase in marketing productivity.
The Evolution Of Finance and Technology
Data and fintech are just two small examples of the evolution of the financial sector in 2020. We can safely expect more and more projects being developed with AI technology, in order to automate bulky processes which, within the financial world and within sectors like residential property auctions, could really make a difference. We’ll see what the future of financial technology will look like in the next couple of years but, for now, the results which have been achieved throughout this global pandemic have been pointing out how big these changes will be.