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3 Market Predictions On The Future Of FinTech

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3 Market Predictions On The Future Of FinTech

If there’s a business sector which is highly and drastically changing, that would definitely be FinTech and everything connected to it. FinTech was born to improve and speed up bulky processes such as mortgages and any form of loan, really, but it has evolved a lot in the past couple of years, with the advent of many different pieces of technology like machine and deep learning. In order to precisely analyse the future of FinTech, we would need a crystal ball, but these are the top predictions the market has given us as of today.

Data Lakes Architectures

As many of you may know, data has become the biggest asset in the world, surpassing oil by 3.5% in this year’s first semester. With numbers like these, it was a matter of time before FinTech as a whole started to move towards the usage of data within itself as a business sector. Data lakes are cloud or software-based architectures which are built to gather, process and render data independently from another section of the architecture. AWS is currently the most powerful data lake architecture in the world, and over 65% of FinTech companies have been using its services in 2019. With numbers like these, we can safely say that data lakes-based architectures will very likely grow even more in 2020.

Real Estate-Oriented Objectification

Although this may sound like a frightening term, objectification refers to the usage of variables to speed up processes within any financial sector. As many of you may know, mortgages and property-related matters, from buying to selling, are pretty slow and sometimes they require long timeframes to even be acknowledged by banks worldwide. FinTech, as a sector, has been working on developing next-level portals which, by relying on Python-based architectures, were able to instantly process financial applications for commercial matters like commercial property auctions and/or simply buying a house/office/building. With objectification, groups like Santander have increased their profit margin by over 35% in the past couple of years. (Profit margin was calculated by analysing the number of financial application being processed within a week’s timeframe).

Crypto? Yes, Crypto.

Who remembers Bitcoin? Yes, the cryptocurrency which everyone (and I repeat, everyone) was talking about 3 years ago. Apparently, the whole FinTech sector was so stoked on what happened to Bitcoin to the point for which almost 70% of the startups operating within the FinTech niche (Google it, it’s actually insane how high this percentage is) started to develop their own cryptocurrency. The purpose? Selling blockchain-based architectures and IFE (Internal Financial Environments) to banks in order to have them working on their own cryptocurrency.  An example? Santander (again) and (even if it’s not a bank) Facebook’s very own “Project Libra“.  With this in mind, and given the billions invested in these projects, it’s safe to say how much these crypto-oriented features will dominate 2020 and beyond.

To Conclude

FinTech is the business sector of 2020. These above are just simple examples of why this is very likely to become this century’s Wall Street but, if you’re an entrepreneur or you’re just looking for new avenues, you may want to consider this sector.

Related: Is the Furniture Industry Moving Towards eCommerce?

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