Basic Approaching Trends To Restructure , Rewire And Restrategize The Fintech Businesses:

The following Four Approaching Trends won’t just rewire the inner workings of the Fintech Industry, they’ll create space for further innovation on the part of agile startup entrepreneurs.

  1. Quantum computing
    Modern computers are based on binary code that is interpreted by the computer as ones or zeros — each binary digit represents a binary state (on or off). Quantum computers turn that notion on its head by leveraging quantum phenomena such as quantum entanglement and superposition.
    Suffice it to say, they’re like supercomputers on steroids.
    Where quantum computing has a potential impact on fintech is with processing and settlement of transactions, faster data processing, risk and performance modeling and better security.
  2. Artificial intelligence
    AI is making big splashes in almost every industry. When robots can do the work instead of humans, the advantages are obvious: lower overhead costs, faster processing and more seamless user experience.
    In fintech specifically, AI offers a highly practical tool for major financial organizations to manage portfolio risk and help institutions with regulatory compliance — a task which has become increasingly time-consuming and complicated over the past several years.
    Pacific Wealth Solutions is a perfect example of a fintech company that uses quantitative computing and AI to break down which investments in insurance and asset protection programs have high odds of producing strong returns.
    AI and other advanced tech such as quantum computing will reduce the need for salespeople and advisors in the financial industry altogether. Technology will continue to reduce costs and streamline access to information, providing improved returns for investors, consumers and firms providing more effective programs.
  3. Cryptocurrency and decentralized finance
    Decentralized finance (DeFi) is one of the prevailing narratives in the cryptocurrency and blockchain niche. Based on open protocols, DeFi projects such as MakerDAO on Ethereum for decentralized lending of the Dai stablecoin and insurance products such as Nexus Mutual provide decentralized alternatives to traditional financial institutions.
    DeFi is not limited to just blockchain based companies. There are many up and coming non-blockchain fintech incumbents establishing themselves through decentralization.
    platforms such as TomoChain have positioned themselves as a foundation for DeFi applications with near-zero transaction fees, fast confirmation times and scalable infrastructure for a new ecosystem of open financial protocols.
    Another area of ongoing innovation in open finance is with the flood of stablecoins (cryptocurrency designed to mitigate financial risk). Tether remains the dominant stablecoin in the cryptocurrency realm, but stiff competition is emerging with projects such as Stably.
    n an effort to provide the utmost transparency, the Stably team provides real-time bank data to prove their reserves back the circulating supply at a one-to-one peg with the dollar while also conducting regular attestations through third-party auditors.
    Stablecoins are a vital tool in the volatile cryptocurrency markets that can be used for everything from smart escrow to margin lending. As open financial products on blockchains continue to develop, look for stablecoins to play a role in building the bridge to decentralized finance.
  4. Big tech
    One of the more evident trends in fintech is the continual entrance of big tech firms into the financial sector.
    Apple Pay, Google Pay and Samsung Pay are all becoming enormously popular among smartphone users. Alibaba, China’s massive online retailer, has made significant progress with its fintech partner, Ant Financial
    Big banks are not taking the pending competition from major tech firms lightly either. According to a quote by Peter Gordon, CEO of Payment Relationship Management…
    “The large banks want to reclaim the payments and do not want Amazon, Apple, Google and others to displace them. The banks understand that the current payment system infrastructure is broken, like our roads and bridges in the U.S. They’ll work to create new rails that are more efficient.”
    Payment rails are long overdue for a speed upgrade, so perhaps the increased competition from big tech can move the needle for the benefit of consumers and entrepreneurs burdened by high fees and slow transaction processing times.
    As an entrepreneur, whether you’re looking to position yourself for the future of open finance, AI tools or even the long-term promise of quantum computing, one thing is clear — fintech is ripe for disruption. Will you be the one to disrupt it?

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