8

May


Kristen Lunman

How FinTech is the future of the financial sector

Believe the Hype

You’ve heard the rumours. Word on the street is that FinTech is the hottest thing on the block. The problem with the new kids on the block is that they don’t always stick around through, right? FinTech is a bit different. It’s here to stay. And not only is it here to stay, it’s here to change the game. Don’t get left behind. Believe the hype. FinTech is the future and the future is people.

Get with the Programme

That’s right. Even though the digital revolution is happening right in front of our eyes at lightning speed, there’s still time to get on board. Do it now and don’t get left in the dust. The very infrastructure of the financial industry is getting a big ol’ shake up. Think about it. Asset management, business and personal loans, fund raising, money transfers, investment: all of our interactions with finance, big or small, are being radically optimised.  

In the US and China, FinTech has already made massive waves, disrupting the game and making things more accessible, cheaper, easier, faster for the everyday person. The majority of online and loads of offline transactions in China are done via mobile. More than that, online lending and investing is made simpler with the rise of e-commerce companies. It’s convenient, simple and fast. We reckon FinTech has huge potential to change the game here in New Zealand too, which is why we’re banging on about it so much. What seems like a niche market right now is gonna be the uber of your not too distant future. Get into it now before you start

Power to the People

We can talk about apps, frictionless payment, robo-advisors and digital wealth management all we like - but none of this even matters if it doesn’t make a difference for you.  In the UK, robo-advisors are already making it easy for everyday investors, sidestepping the rigmarole of dealing with traditional advisors. Big banks are feeling it, as smaller FinTech innovations are making it easier for everyone - from big investors to those who simply want a more efficient way to manage their money.

New Zealand based startup Sharesies makes investment easy as mate. In fact, you only need $50 to start your own investment profile. How about that? We’re in an age where ordinary people want to do extraordinary things. And rightly so. FinTech gives you the power to do this.  It’s democratising the finance game. Meaning the future of finance is looking friendlier than ever.

Collaboration is the future

Imagine that: a world where everyone’s best friends. Well.. okay, I’m not gonna go so far as to say that FinTech is the last step to Utopian world peace, but it’s pretty close. The future of FinTech, trending towards mobile banking, ease of access to info, and decentralised access will create pathways for different community sectors to interact. It’s like one big happy family right? People with less capital can invest in something like Sharesies without having to worry about the restrictions of incumbents. Peer to peer lending sites like Lending Club are gonna make it easier to borrow money, reducing rates by opening up competition for loans.

Thrilling new technologies are being developed so that your future is frictionless and upwardly mobile. Not to mention that decision making will be easier, as new technologies predict behaviours, marketing will be data-driven, financial decisions will be easier to make because they’ll be based on data instead of guess work and let’s be honest, whether or not you had a good day at the office. There’ll be apps that learn your spending habits (no more denying that you’ve got an ASOS habit I’m sorry), in turn helping you make wiser spending and saving decisions. Banks (ahem…like Kiwibank) who work together with FinTech, will benefit from improved data analytics that will help their clients make savvier investment decisions and provide new openings for innovation. It’s a technological revolution.

We’ve only just begun so join the revolution

You won’t fool the children of the revolution sang… someone in the 70s. But who cares? The point is that you are the child of the revolution, and the revolution is now. FinTech is drastically changing the way we interact with finances, whether you’re a big player or a little gun, the benefits for you are gonna be extraordinary.  

Removing friction, expansion and easier investment opportunities, fee reduction, all in one money management apps and tools. A future of finance that empowers you instead of the big guys, that gives you more autonomy and insight into the decisions you make, with the ease and access of financial mobility. The children of the revolution (you, remember) won’t be fooled. Get stuck in.

Interested in finding out more about the movement? Get in touch.