What is fintech and why does it matter to all entrepreneurs
What is fintech
Fintech is a term that is becoming widely common in the media and in technology circles. Despite its popularity, many people, particularly techies and savvy entrepreneurs, are unfamiliar with the word. Accountants in London have come up with three reasons why the sector is struggling. Some of his ideas are right, but most are not.
What is fintech?
Fintech is a term used to describe a subset of the technology startup scene that is transforming industries including electronic payments, money transfers, loans, funding, and wealth management.
Why fintech matters to the business world
Fintech's growth has forever altered the way businesses operate. The traditional paradigm of a young company approaching a nearby high street bank and/or a traditional investor is no longer the only game in town.
Entrepreneurs have never had more options than they do now, from crowdsourcing to mobile payments. It's never been more affordable to not only start a company, but also to develop one. Crowdsourcing, for example, helps people with big plans to raise money efficiently and efficiently from strangers they've never met all over the world.
How fintech changed the customer
The advent of the mobile has drastically altered customer behavior. People can not only access information and data they have never been able to do before, but they can do it while waiting for a bus, thanks to the ‘always online' world we live in today – and the abundance of services and applications that fuel it.
Fintech has only just got started
Fintech's growth has opened up a whole new world of possibilities. Businesses will now have more services than ever before at a fraction of the expense of doing so previously.
Keeping up with fintech innovations should be a part of the entrepreneur's everyday routine. Being mindful of the most recent trends and advancements in the industry will only help you grow your company and keep ahead of the competition.
Here Accountants in London listed three reasons the industry is failing. While some of his thoughts are on target, others are not.
1) There is a fundamental strategic contradiction between technology and finance
The new tech growth curve is familiar to all types of investors, from conventional venture capitalists to angel investors. The majority of institutional and private investors have a three to five-year investment period. This suggests that investors put money into a company in the hopes of seeing a return on their investment within a certain time frame.
2) Market realities encourage short-term thinking
The sector is suffering greatly as a result of this growth-at-all-costs mindset. Problems emerge as fintech firms use their investment dollars for fast growth rather than innovation. If the level of competition rises, Fintech companies continue to make more risky choices.
3: Incumbents in the market are powerful and resistant to change
I work with banks and other financial institutions that are already established. The most of them have one thing in common: they despise transition. The financial sector's incumbents are extremely strong and complacent. Most people are unconcerned with Fintech firms vying for their company because, obviously, none of them face a serious challenge at this time. Banking and financial services in general are heavily regulated and therefore conservative by nature. It's the only sector I can think of where a dedication to creativity and immediate action can be counterproductive to one's career.
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