Welcome to the 21st century, when fintech companies are in the spotlight. For those new to the term, a fintech company is any business that uses technology to modify, enhance or automate business financial services. We’ve seen fintech brands being integrated with SaaS, too; the potential of this industry is limitless.
Some obvious examples of fintech brands include the all-in-one eCommerce platform Shopify, the payment processor Stripe, PayPal, and VISA. These brands use technology to offer scalable solutions with value-added services that focus on increased agility and security. But what does the future of the fintech industry hold?
We are about to see more and more “as-a-service” business models
From “Infrastructure-as-a-Service” (IaaS), “Platform-as-a-Service” (PaaS), and “Software-as-a-Service” (SaaS), it seems like the trend will continue. The incorporation of “as-a-service” businesses allows brands to innovate and change many traditional concepts as we know them. A great example is “banking-as-a-service,” a revolutionary concept through which we use banking apps to apply for loans, perform transactions, and do everything without visiting the bank.
Hybrid cloud is slowly taking over
We all know financial companies have large amounts of data. Much of that is confidential information, such as account names, balances, and history of international business payments. The need for high security is big, and hybrid cloud solutions are the ideal solution to this problem.
Suppose you don’t know what a hybrid cloud is. In that case, it’s the combination of public cloud services that can store information and private cloud solutions that are needed to execute workloads based on any high-security requirements.
While way back, businesses needed to buy and sell from or to other businesses, all transactions were carried away offline. When everything became accessible online, the world moved in a new direction. Rather than having to do things in-house, many services started giving non-technical people the ability to do things through their browsers. The hybrid cloud is nowadays accessible through simplified, drag-and-drop, what-you-see-is-what-you-get (WYSIWIG) interfaces. The cloud perfectly fits the pattern of the new workplace, and we can see new successful market leaders in many aspects of finance.
The communication shift
Communication and content delivery channels changed in line with the distribution of information from offline to the cloud. Always-connected sites and simplified apps replaced the complex and local programs that were once an industry standard. A few examples include the replacement of Hotmail with modern Gmail, Slack, and Teams as the new generation replacing the old Skype, Zoom, and Google Meet instead of the obsolete ICQ, AQL IM, Yahoo Messenger, and so on.
These platforms give non-technical people an easy way to accomplish their goals quickly, communicate effortlessly and get things done without using expensive hardware or dealing with complex operations. Digital finance is no different than this example and is an industry that is embracing the same communication change.
The rise of blockchain
The world of cryptocurrency is known for its ups and downs. However, crypto has been here for more than a decade now. The technology is based on blockchain, which perfectly aligns with fintech SaaS brands. More countries are warming up to central bank digital currencies (CBDCs).
The financial model template of CBDCs is simple: they are envisioned to be digital forms of currency of a country, launched by the central banks of each respective country. They will be built using blockchain technology and controlled by the central banks of the respective countries.
Blockchain in fintech is seen as a major catalyst for disruption in traditional finance. It is a bridge to generating more revenue, improving the user experience, streamlining the delivery process, ramping efficiency, and reducing risks in business operations. Fintech is currently in its evolving stage – some apps offer better and new approaches to the management and processing of payments.
Everything is becoming virtual
‘‘Everything is going virtual’ might be a broad statement to many, but we are already witnessing a major shift to the online world in many areas of life. Remote workers embraced everything as the new normal, aligning with their new organization schedules, team rituals, and daily responsibilities.
Businesses that offer a remote-first environment can recruit and hire anyone worldwide, changing the traditional model and radically improving labor. Their global reach gives them a unique perspective on international hiring, too. The trend is present in fintech SaaS, featuring brands of all sizes. On the other hand, people who are paid in an appreciating currency will feel the wealth effect, and be motivated to give their best.
In some industries, the trend got accelerated by the COVID-19 pandemic – we all started accepting online services and adapting to the new normal. Fintech SaaS is one of these areas, as there are plenty of tech finance coaching models helping users adapt to the new technology.
However, multiple advances in artificial intelligence (AI), automation, and cloud computing will also help. For instance, we have a lot of streamlined algorithms powering institutions and businesses. Matching customers to the products and services they seek has never been easier, and all of that is done without the piles of paperwork.
Businesses will find new ways to connect directly to customers
Last on our list is something we are experiencing every day. While geographical barriers used to be among the deciding factors in accessing services, the situation is different now.
Brands are looking for ways to better connect with their customers. Video content for crowdfunding campaigns, delivery services, and online storefronts—the pandemic accelerated the fintech model and brought necessity into the mix. Whether you are on the buying or selling side of the equation, know that the shift to a virtual revolution is here—and it’s real.
Summary
Fintech is a trend that is here to stay. It is a concept that will continue to evolve with accelerating innovations. As a result, customers will benefit in many ways; from faster services to lower costs, most transactions will be automated. Ultimately, fintech is all about saving time and money and reducing common inconveniences.
Hybrid cloud strategies are quite prominent, and nothing is surprising to know that.
An environment which incorporates workload portability, orchestration, and management across two or more computing environment ideally a mix of a private (on-premise) cloud and a public (off-premise) cloud is a hybrid cloud.
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