Financial technology, now known as Fintech, has been quite the buzzword in recent years.
Although initially dismissed by some commentators as a fad, Fintech is proving to be a force for good within the business, and as we near the end of 2019, it looks like Fintech is here to stay.
Despite the general perception that Fintech is a new development, it actually started decades ago with significant moments including the roll-out of ATMs in the 1960s, and the introduction of online banking and trading in the 1980s.
However, since the early 2000s, developments have rapidly increased due to the internet, smartphones, the launch of cryptocurrencies, and the ongoing digitization of information and processes across many different industries around the world.
Fintech has become so ingrained in the business that its development is no longer restricted to the financial services sector and is now starting to impact any company that uses financial services.
For example, Fintech is revolutionizing how small businesses make payments through apps and tools, and international transactions are becoming quicker and easier, which is crucial for industries like shipping and air cargo.
Basically, faster payments result in cargo being released quicker, and in today’s’ business world, that is a huge advantage.
So what does this all mean for the future?
Financial services writers are predicting that the use of Fintech will continue to grow throughout the next decade, particularly as investment increases and cities like London in the UK establish themselves as Fintech hubs.
Furthermore, many Western countries are already moving towards cashless societies, which is leading to innovative start-ups using digital technology to create financial services such as bank accounts and credit opportunities for the low-income or underbanked.*
And non-profit organizations and religious institutions are now researching into how they can accept cashless donations to keep up with the modern way of spending money.**
For the shipping and air cargo industry, we can expect to see more and more transactions being made via online payment platforms, and for those wanting to keep up with the pace of change, it makes sense to jump on board with the Fintech revolution now.
*The ‘Underbanked’ Is The Next Trillion-Dollar Opportunity in Fintech, Forbes, 2019
**Expanding Fintech Into Nonprofits, Churches, Mosques, And Synagogues, Forbes, 2019