It is certain that we live in an era of important innovations in information technology. It is very exciting for all of the finance professionals to consider how these innovations might change the future of economies and finance industry.
The Rise of FinTech
The financial services industry can also be defined as an “information industry”. Because payments, risk management, investments and all other financial services are based on broad information flow and a wide range of data. So it is inevitable that the rapid innovations in information technology will have a significant impact on financial services and will lead to a technological revolution in the finance industry.
The latest most popular information technology innovations such as blockchain have a direct effect on the most basic source of the finance industry, – Money.
Besides, as smartphones have become the new and easy way to access financial services, this also has a huge impact on the finance industry through digital payments.Thus, financial institutions need to start thinking digital because value-added services, security, omnichannel solutions and lower cost payments have become more than a trend and gained importance in digital transactions.
Impacts of FinTech on Financial Services
FinTech has all the potential to reshape the whole financial services. Because financial innovations have a direct impact on investments and savings which have huge effects on productivity and economic growth of the countries. That is the main reason for the rising interest in investing FinTech.
Another value that will be added to the finance sector is that, with the help of FinTech innovations and personalised tools of smartphones, it is now possible to analyse customers individually using large data sources. So FinTech makes it possible for the industry to create customised services.
FinTech also has a huge potential on the globalisation of the financial services. By using the smartphones FinTech has the possibility to provide financial services not only in developed countries but even in the emerging and frontier countries. And this will surely have a positive effect on financial inclusion and the growth of the industry.
FinTech Industry in London
London is considered as one of the most important global centres of FinTech. That’s why SMEs that are developing and innovating new FinTech solutions seem to be thriving in London and 17 of the world’s top 50 FinTech companies are rooted in London.
London FinTech Scene clarifies London’s promising positioning in the FinTech sector;
“London is a hugely supportive ecosystem for FinTech with various programmes designed to make it easier for firms to scale.”
The report also claims that in 2018 job creation within the FinTech space increased by 61% – making it the fastest growing sector in the London economy.
According to another report from Innovate Finance, the London FinTech hub is holding its position as the world leader. It is also ranked as the third in terms of venture capital invested after China and the US.
Cloud technology has enabled startup fintech’s to compete with large firms by allowing them to leverage and transfer the costs benefits to clients solving the issue of information costs and also technically enabling automation and integration in the financial industry.
As FinTech industry continues its growth, it is becoming more significant for conventional financial institutions to partner with reliable, solution-oriented and professional FinTech companies to adapt their businesses to the new era of the industry.
With its office in the heart of the Fintech city, London, EquityRT helps financial institutions to manage vast amounts of market data with intiutive analytical tools and a robust cloud infrastructure.
In order to benefit from EquityRT and improve the efficiency of your financial markets analyses, just contact us, and we’ll be more than happy to help.