The trends in Fintech over the last decade have been substantial. When we narrow the range to the previous 2 years, the innovative explosion we have witnessed within the Fintech realm has been record-shattering. Through the continuous leading technology advancements within Fintech, blockchain and crypto are pathing the way forward.
In this article, we look at some of the latest evolutions within Fintech, including blockchain and crypto. It's clear that these technologies are not only on the cutting edge but are already creating a world of new opportunities for both businesses and individual consumers, giving them flexibility, autonomy, and full control over their financial goals.
What consumers need within their finances.
The expectation of consumers with the banking system is changing rapidly. They expect banks to adapt and improve their digital banking experience, something in which the banks seem to be lagging. A survey covering over 17,000 banks across 17 countries showed that banks struggle with meeting customer expectations.
Fintech, on the other hand, is flourishing within this digital world. The Fintech sector is rapidly evolving to meet the expected demands of the consumer, providing them with a way to manage their finances, transact, save, and invest without spending too much time or money doing so.
During the COVID-19 pandemic, online shopping saw an 84% increase. With this increased online financial activity comes the need for enhanced cybersecurity. The issue with cybersecurity comes from the ever-increasing rate of cyberattacks. According to a 2016 report, 58% of consumers said they would stop using online banking for financial transactions if they knew someone had access to their information. The public is aware of the dangers and is becoming increasingly mistrusting of the banks' security measures.
How Fintech has grown during the past two years.
In the past couple of years, Fintech has been rushing to meet the growing expectations of consumers with a number of new ideas and concepts. In 2020's first half, Fintech ventures secured over $25 billion of funding. What is truly astonishing about this number is that it's nearly double the funding secured by Fintech ventures in the same period just two years ago.
Within the last 2 years alone, Fintech has seen a major shift towards blockchain and crypto. Not only are these technologies setting new records for fundraising, but they're also paving the way for numerous new opportunities. Transacting with cryptocurrencies is becoming widely accessible, allowing those from all over the world to transfer money across borders quickly and easily.
With the blockchain, we're seeing a record increase in global investments and a $9.34 billion increase expected during 2021-25. Streamlined international transfers, reduced risk of fraud and cyber-attacks, as well as the convenience that comes with managing your finances are just some of the many reasons why Fintechs are taking advantage of blockchain technology.
The rise in cryptocurrency is even more significant, with the total market cap currently sitting at over $1.71 trillion. This is a great representation of how much control consumers are taking back by opting to transact through cryptocurrencies.
Why people are choosing to be unbanked
As Fintech continues to evolve, individuals are developing an increasing interest in the alternative banking sector. The number of consumers opting to be unbanked is on the rise. The reasons for this vary, but the following solutions are the key drivers behind the increase in alternative Fintech institutions.
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