Investment is a game of risks, as you can win and lose at the same time. However, the biggest risk is to avoid change. Fintech has made advancements in business and it provides the business with a chance to have outstanding growth, and it has also set trends which have had significant impacts on the financial landscape of the world. The following are some of the trends set in Fintech.
1. Invoice financing.
Qupital, Platform Black, and Marketinvoice as financial players have made significant effects on the invoice market by creating marketplaces to link sellers and buyers and giving the buyers and sellers a chance for selective, and single import invoice financing. Furthermore, Marketinvoice on this case as a result of solving the real issues in invoice finance has become one of the important players of Fintech.
The new trend of invoice finance removes the requirement of bank intermediation hence reducing costs. On the other hand, it allows increased flexibility, making the investments to sell invoices only when needed without ongoing fees. With no doubt, the new providers such as Fintech has provided the required connotations to the industry and gave support to the small business.
2. Quick Financial Transactions.
Financial transactions took longer periods before the emergence of digital payments and Fintech. The integration of Fintech companies with banks has allowed for a revolutionary change. The partnership has brought about P2P payments and real-time payments among many other advantages.
3. Increased focus on AI.
More efficient decisions and outstanding solutions to the business problems facing Fintech firms has been made with the growth of the AI. Analyzing of huge amounts of customer details and the breakthrough in huge data was easy by the introduction of the predictive analysis.
The emergence of a section of digital Neobanks has been noted in the recent years. They offer a platform for financial services and a user-friendly digital interface without the user maintaining their banking licences. Furthermore, Neobanks offer the user better and faster services with the attention on digital applications and user experience.
5. Insurance for the underserved.
Emerging markets’ low-income consumers need risk insurance products to mitigate and manage their financial risks, even though serving the customers has challenges. From educating customers, pricing and assessing risks, to efficiently managing claims. Fintech can play an important role in dealing with the problems as the products meant to address certain risks for underserved regions, create new distribution channels to connect these people, and streams of data to efficiently price and asses risk. The insurance innovators such as the Lumkani, which sells cheaper heat detector which has insurance to families protecting them from loss of shelter, loss of life and other assets.
6. Financial services for smallholder farmers. Since the income of smallholder farmers are linked to unpredictable harvests, they are the clients who possess the highest risks and are often difficult to reach. An estimate of over 250 million farmers around the globe faces a financial gap. Fintech can offer real value by assisting farmers with irrigation pumps, address climate risks and combat pests. Apollo Agriculture is an example of the Fintechs which provides satellite imagery, mobile cash to finance seeds and fertilizer required to boost the crop yields.
7. Asset finance.
Both small businesses and individuals need financing for some assets like smartphones for data collection, solar home systems, and medical equipment to improve lives and increase efficiency. Pay as you go usually sent using mobile phones is a promising innovation in Fintech and it allows businesses owners and consumers to make upfront payments. This has made outstanding effects on emerging markets as it has given rise to the rapid growth of solar home systems. For instance, in Kenya Paygo Energy enables low-income customers to pay for more affordable and clear cooking gas.
8. Consumer financial health.
Fintechs are helping consumers manage their daily financial lives and risks. There are outstanding chances for businessmen to use behavioural science to get new remedies, for instance, using automation, clever nudges, and gamification.
9. Banks joining hands with Fintech.
This collaboration has made outstanding benefits to both the Fintech’s firms and banks. As in terms of revenue and customer retention banks has benefitted, while on the other hand, the firms have got legitimacy in conventional methods of payments. 10. Blockchain rise. The blockchain has allowed some complicated records and big date be saved digitally allowing real-time updates of payments in date records. In conclusion, researchers suggest that blockchain can save a lot of money when used.