The emergence of financial technology ("fintech") has altered the landscape of the financial services industry. This up-and-coming industry is growing rapidly, especially in comparison to other sectors. It is no surprise that innovation and technology are our future.
In fact, our society thrives on "creative destruction," an economic concept in which process and product innovations create superior new products that replace older products. Recent examples include the transition from flip phones to smartphones, watches to smartwatches, register checkout to self-checkout at the grocery store, hailing a taxi to ordering a ride-share on your phone. The list goes on and on. There is certainly no denying that "creative destruction" is prevalent and will continue to persist in our world. Thus, we must not only understand and acknowledge this concept, but also embrace it.
Although technological innovations may disrupt or destroy the "old" ways we communicate, shop or conduct business, this change is not fundamentally bad. In fact, it is very good for our society, economy, businesses and personal lifestyles.
So, we know that technological innovation is perpetually growing and very impactful. But why is fintech, which specifically focuses on improving products and processes for the financial services industry, growing so fast? Here is why:
1. FINANCIAL SERVICES IS THE WORLD'S LARGEST INDUSTRY.
Not only is financial services the world’s largest industry, but did you know the financial markets in the United States are the largest and most liquid in the world? It makes sense why the demand for financial technology is so high due to the magnitude and global influence of the financial services industry.
2. FINANCIAL TECHNOLOGY CREATES BETTER BUSINESS PROCESSES.
Investing in financial technology is beneficial for companies across all segments of the broadly defined financial services industry. Whether your company focuses on banking, asset management, insurance, private equity, venture capital or a combination of these subsectors, there is a solution for improving your business activities both internally and externally. For more information on why financial technology is so advantageous, click here.
3) FINANCIAL TECHNOLOGY IS WORTH THE INVESTMENT & MANY INDUSTRY LEADERS IN FINANCIAL SERVICES UNDERSTAND THAT FACT.
Again, the financial services industry is both extremely large and highly profitable, especially in the United States. With financial services being such a dynamic and growing industry, leadership within these financial firms are especially important. Company leaders with vision will distinguish themselves by choosing to be at the forefront of the fintech revolution to achieve competitive advantages. They value creativity, innovation, and continuous improvement and will make the necessary investments to achieve these core values. This forward-thinking approach will set apart many financial institutions from their competitors.
Are you interested in learning more about financial technology and how it can benefit your company? Matrix Applications offers a suite of quality fintech products for capital markets to improve your business processes and provide you with a competitive edge.
For more information, go to www.matrixapps.com.