The Fintech industry is built around providing technological solutions to advance the financial services sectors. Having grown the worlds of online banking and more recently mobile banking, fintech is booming more than ever before.
In a report released this week, the Fintech Blockchain sector is predicted to soar from 2018’s expected $370.3 Million to $6,228.2 Million by the end of 2023. The 75.9% Compound Annual Growth Rate over five years comes about because of the advancement of blockchain technology and the willingness of financial institutions to embrace it.
We’ve come a long way from the days of traditional high street banks being our only choice. The internet changed the way we bank forever, and now it is going to be changed again. Blockchain technology is the natural partner to the financial industry ecosystem. Big selling points for the marriage between the two is that blockchain allows for quicker transaction time and ownership at a reduced cost. For the Fintech industry, this presents an opportunity and a serious threat of disruption. Trading platforms such as spectre.ai make it possible to trade fiat currencies with cryptocurrencies on the same platform along with CFD’s and digital options. The brokerless platform reduces cost and is competition to the existing more traditional financial institutions.
With so much happening in the Fintech and Blockchain world it is hard to keep up. There are sites that offer a fintech rating or review the latest fintech innovation. The downside to massive growth of the ICO (initial Coin Offering) world has been the number of Scam ICO’s. The number of failures – 52% in 2017, prompted Facebook, Google, and Twitter to ban all crypto ads. However, as more and more companies crowd fund via ICOs and blockchain technology advances, the big banks and other financial services have accepted the fact that the crypto sphere and blockchain technology is here to stay. They are also realizing that they have to adapt which is why there has been heavy investment by companies within the fintech industry into developing blockchain.
Some of the biggest financial giants have invested into blockchain. Household names such as J.P. Morgan Chase, Citigroup, Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, , Royal Bank of Scotland, Banco Santander, Danske Bank, Sumitomo Mitsui Banking Corporation and UBS have all invested into developing the potential blockchain technology offers to the fintech industry.