How Big Is The Fintech World In 2019?
If you’re a business and technology fanatic like me, then fintech has definitely been a keyword you’ve seen a lot lately. The combination of finance and technology has definitely been quite established in a noisy marketplace which no one has really understood until last year when Santander invested billions for their blockchain-based branch. Let’s analyse the world of fintech in its entirety.
What Exactly Is “Financial Technology”
For financial technology or fintech, we intend all the corporations which are applying complex technologies (mainly data-related and architecturally based on machine learning) to their financial products. Fintech applications have been ranging lately from loaning procedures (applications, approvals and more) to databases which are relying on building data points for clients or bigger companies. Financial technology is an extremely complex field and it has been lately more focused on the “technology” side of things instead of pure financial matters.
Technologies Used
When it comes to pieces of technology used, as mentioned above, the vast majority of fintech companies (whether startups or big enterprises with their dedicated division) operates with data-driven applications (mainly Python-based tools which are processing data generally gathered via cookies) or complex architecture mainly used in the cloud. Depending on the purpose of the very fintech company, there could be dozens if not hundreds of programming languages and tools being used every day. Fintech has lately moved to mobile, with app developers and technical due diligence companies building more and more apps similar to Monzo (which is, to this very date, the simplest form of fintech on the market).
The Market Value
Fintech, although being used for billion dollar-worthy companies like Santander, is definitely still a startup matter. In a recent Forbes’ study, it has been stated how the entire fintech realm is still pretty much dominated by small companies or startups who have received a massive influx of investments. In fact, buying from big enterprises in relation to small startups has lately become quite the trend: basically, instead of building their own division, they decided to buy small startups with an already consolidated team. Smart choice!
To conclude
The world of fintech is definitely extremely vast, as of today. With examples like Monzo and Revolut, which combined have millions of active users already, it’s safe to say that the entire fintech sector will grow massively in the next couple of years, potentially becoming a crucial part within the business development of many companies.