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If you’re a business leader, or you have aspirations of being one, then you will likely benefit from understanding more about fintech. Don’t worry if you don’t know too much about fintech, this article will explain the basics.
Defining Fintech
Simply put, fintech refers to the integration of technology and innovative sources to financial services. They will be offered by financial services to benefit their customers, as well as provide a service to the public and private sector. It can come in multiple forms, from banking apps to financial smart software, all of which will be explained below, with the aim of looking forward.
Decentralised Finance Developments
When talking about the market updates for fintech going into 2022, you should understand the role that DeFi will have. Decentralised finance can come in a few different forms, with it mainly referring to cryptocurrency and the role it plays in platforms such as Bitcoin and Ethereum.
They all work through the blockchain, which is a decentralised structure that requires no third-party that takes a cut. They can operate from peer-to-peer markets, or can operate through traditional trading platforms. The media has started to pick up on the rise of DeFi, so you can be sure to hear more about it in regards to fintech.
Business Virtual Cards
One of the latest developments that has started to ground itself in the market, comes in the form of virtual cards. These virtual cards are not only on offer for individuals, but they are available for businesses as a whole. These smart corporate cards allow you to set built-in spend rules that are automated to your requirements. The benefit of this is that it allows you to track how your company money is being spent, and avoid it being mis-used on goods that aren’t eligible for business use.
Traditionally, employees may have been given a business card in general that existed and worked much like a traditional card. Whilst you could top it up with business funds, it was easy for this to be taken advantage of, without you even knowing how much was spent, where it was spent, and who spent it.
Fortunately, virtual company cards give you back this control. It’s likely you will have a lot of questions regarding how they work, and how you can get your hands on them for your organisation. This blog post from Payhawk, who are fintech experts, can help you answer some of these burning questions and get you started on your financial journey.
Mobile And Contactless Payments
It has been inevitable for a while that the mobile and contactless market would soon takeover the fintech world, but experts perhaps didn’t expect it to take-off as quick as it has done. The quick transformation and digitisation of money has been accepted across the board for everyone. From banks, fintech’s, and even official governments, everyone wants a piece of the action.
Of course, the biggest advantage of these is the convenience they offer. In some countries, such as the US and China, there are companies that have become mobile specialists in regards to making payments and transferring money. It has gotten to the point that cards and cash are rarely seen in cities, with the exception of local markets.
This is a trend that is likely to continue booming, and it’s worth keeping an eye on both as an individual and from a business perspective. Contactless itself is a concept that has evolved further than anyone expected.
More Financial Apps
Aside from contactless means of payment in general, there are more and more financial apps that are expected to come to the market. The main reason they arrive is because of how innovative they are, and the service they can actually offer to customers. There are smart apps that allow you to lock and unlock access to your banking through two-step verification or thumb print. You can even use facial recognition software built into modern phones to unlock banking access.
Some apps also allow you to gain more insight into your finances. There are new apps that have smart AI built in that can help you make savings and cut spending without impacting your life. This is only the tip of the iceberg, and it is something that is expected to dominate the market soon, alongside virtual reality developments.
The Rise Of VR
Whilst it may seem a strange pairing, the future of fintech looks to have deep roots within virtual reality now, partly thanks to the rise of Meta, the recent rebranded Facebook. In fact, it’s likely that the internet itself will look like a completely different place within a few years alone.
It may not yet be clear just how VR will be used for financial means, you can be sure it will have a role to play. It is expected that VR will allow you to walk around virtual marketplaces, purchasing much like how you would in person. But truthfully, no one yet knows, but keep an eye out.
