January, 2022 - Jacob Parker-Bowles

Financial technology, also known as fintech, is the implementation of technology in the financial industry. The purpose is to improve the ways that financial services are created and delivered to consumers. Technology has also increased the availability of financial services, such as loans and investments, to every member of the public. There are several methods recommended to become more knowledgeable about the emerging field of fintech.

Improve basic skills in finance

Someone who knows nothing about finance cannot expect to become a fintech expert. The first step is to develop a basic knowledge of finance in a diverse range of topics from stocks to lending.

Learn the different sectors of fintech

Once the basics of the financial industry are learned, the next step is to learn about key fintech sectors. The most well-known areas include online payment systems, blockchain, digital lending and digital wealth management. Since millions of shoppers are buying their products and services online, the use of online payment systems has exploded in the past decade.

Blockchain technology has become more advanced as people exchange vast amounts of private information over the Web. It is commonly used in cryptocurrency to conduct financial transactions without increasing the risks of fraud.

Enroll in short-term courses

A short-term course is designed to advance a learner’s skills in every major fintech topic from blockchain to Python programming. A course also gives a beginner firsthand access to experienced fintech professionals. Students can receive hands-on training in the field and start building their financial portfolios.

Review fintech websites

It’s recommended that starter and experienced fintech professionals begin to track financial trends and statistics carefully. Every day or once a week, they should review websites that contain the latest news about financial technology. There are numerous blogs, sites and newsletters that provide regular updates.

The years 2000 from 2021 saw massive changes in the ways that consumers use financial services. Many individuals and business owners had no choice but to use online banking to transfer funds and perform daily financial tasks. Financial consumers are becoming more interested in using machine learning and artificial intelligence. In addition, fintech sector is constantly expanding to include new technology areas and skills. So, becoming a master in fintech starts with a solid foundation based on basic professional skills and knowledge.

Arguably the hottest sector on the planet, fintech continues to roar while 2022 promises to be a banner year for new business models based on financial technology.

What can we expect in the coming year?

A Year of New-Traditional Collaboration

Ever since fintech application began to impinge on the territory of traditional banking, industry observers have been wondering how old and established banking institutions would react. For example, a young entrepreneur can now skip a bank entirely and raise money via a fintech crowdfunding campaign. That same entrepreneur might also ignore a bank in favor of establishing his or her own fintech merchant account.

But the truth is that big banks have never been worried about fintech eating their lunch – just the opposite. They are embracing it and see it as the future of banking. They’re not going to fight fintech, they are going to collaborate more. Established financial institutions see fintech start-ups as a rich source of new revenue streams and as a way to enhance their own mission.

The major fintech buzzword for 2022 is: “Collaboration.”

Payroll Fintech

To date, fintech has been focused on developing payment infrastructures between consumers and sellers. Now 2022 is expected to be the year when fintech enters the payroll sector in a big way. Employees can now expect to see compensation options like “salary on-demand,” and early direct deposit into their personal fintech set-ups. It’s going to make collecting a wage or salary far more fluid and convenient.

Buy-Now-Pay-Later

It’s not a new concept, but when applied to fintech, buy-now-pay-later is simply huge. New operators like Afterpay and Klarna offer multiple ways for people to buy what they want right now with no money upfront. The system is set up for automated payments to be made at periodic future dates. Consumers love it. Those merchants who are adopting buy-now-pay-later schemes are enjoying explosive growth.

Digital Banking Only

Digital banking has been with us for some time. However, in terms of fintech, we’re talking about virtual banks. These are banking entities that have no brick-n-mortar component. Fintech digital banking is a creature of cloud computing. They are “free-floating” platforms that are likely to make stolid granite bank buildings with marbles floors and gigantic stainless-steel vaults a relic of the past.

Financial Technology

Month: January 2022

Increasing your Understanding of Fintech

Fintech Trends for 2022