Financial technology investments have surged since 2008, so we can reasonable expect some major innovations to come from this market in the coming years. Right now, banks aren’t properly servicing every section of the population. There remains a segment of people who fall outside of the scope of what commercial banks typically offer. Fortunately, fintech startups are picking up this slack with blessings from the big banks.
Bitcoin is fighting a negative connotation as being an anonymous currency used for drug deals, but the future implications of it are interesting to say the least. Cryptocurrency holds a separate value than local currencies, which means that worldwide exchanges are a lot less complicated. Hopefully, bitcoin and its ilk will reduce the costs of moving money to pay for outsourcing, importing and other important transactions that cross global borders.
One big innovation coming to fintech is machine learning. Future applications will read our buying habits and offer consumers advice on how to spend less while saving more. Machine learning already drives so-called robo advisor services that help consumers plan for their financial future. That will only evolve as time goes on.
Short Term Loans
Another innovation that might slip under most people’s radar is the revolution of the short term loan. Banks aren’t well-equipped to provide a product like a payday loan, but smaller startups have filled in the gaps. Peer to peer lending helps regular people invest small amounts of money with a strong possibility for a return on that investment.
Bio: Firoz Patel is the mind behind AlertPay Inc., a globally recognized name in online transactions. Firoz Patel currently resides in Montreal, Quebec, where he oversees development of the Payza platform.