Although the fintech industry has only just started to gain momentum, industry experts are looking towards the future. Right now, we are in the midst of the second wave of fintech innovation. After startups doing all of the legwork, financial institutions are leveraging these ideas. So what does the future of Fintech 2.0 hold for the financial sector?
Fintech 2.0 Is On The Horizon
Disruptive financial innovation has been the primary point of focus for service providers over the past years. The majority of new ideas came from startups and entrepreneurs. While banks first opposed these plans, they are now integrating some of these solutions into their offerings. Collaboration has always been the best way to promote financial innovation.
It has to be said, banking solutions have been transformed over the past few years. Online banking has become more versatile, and mobile banking is on the rise as well. But there is still a lot of work to be done. Mainly customer engagement is a pressing issue plaguing the financial sector right now. Onboarding processes need to be streamlined to reduce the time required and associated costs.
While financial institutions worry over their to-do list, the fintech sector is looking ahead. Bigger issues still need to be addressed, including micropayments in a cross-border environment. For larger enterprises, there are plenty of options to do so. Doing business with smaller vendors is a struggle, though.
Point of sale is another industry segment undergoing several changes. Despite these devices being targeted by malware, they are the premier option to accept card payments. Moreover, with mobile payments gaining traction, these terminals need to be upgraded. Fintech 2.0 will focus on building applications for small businesses.
Without sufficient VC funding, Fintech 2.0 will see its fair share of problems. Now that banks are getting involved in venture capitalist funding, exciting times are ahead. However, startups being funded by a VC should be able to do their own thing, with the right guidance. An investor should never be a weight dragging down innovation.
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