Fintech: an industry to watch
Fintech, short for "financial technology," is an industry that uses technology to improve and automate financial services. It includes a wide range of companies and technologies, such as digital payments, online lending, personal finance management tools, and blockchain-based solutions.
The fintech industry is a rapidly growing market, with investments in fintech companies reaching new heights in recent years. The use of technology in financial services has made it easier and more convenient for consumers to manage their money, and has also enabled new business models, such as peer-to-peer lending and crowdfunding.
Why should you be watching the fintech industry?
There are several reasons why salespeople should monitor the fintech industry. Firstly, the market is growing quickly and offers plenty of opportunities for salespeople to find new customers and sell new products. Secondly, fintech companies often have innovative and cutting-edge products and services that can differentiate them from traditional financial institutions, making them more attractive to potential customers. Thirdly, the fintech industry is relatively new and constantly growing and evolving, so while there are still plenty of salespeople targeting it, there’s a lot of industry to go round!
Another point is that many traditional financial institutions, such as banks and insurance companies, are beginning to adopt fintech solutions and integrate them into their existing offerings. This is providing a lot of opportunities for salespeople to sell fintech solutions to these large institutions. Using sales event triggers is a great way of identifying these leads to ensure you’re capitalising on every suitable opportunity.
How are traditional financial services companies modernising?
Traditional financial services companies are using technology to modernise their operations and services in a number of ways, including:
- Digital Transformation: Many financial services companies are investing in digital technologies, such as mobile apps and online platforms, to provide their customers with more convenient and accessible services. This includes everything from account opening and management to loan applications, insurance coverage and investment management. JPMorgan Chase is one of the largest banks in the United States and has undergone a major digital transformation in recent years, investing in new technologies and launching a number of digital products and services to improve the customer experience. For example, it has a mobile banking app, a voice-controlled virtual assistant, and many other digital services.
- Automation: Many financial services companies are using technology to automate various processes, such as account opening, loan underwriting, and fraud detection. This can help to lower costs, while making the processes easier for their customers. Wells Fargo, one of the largest banks in the United States has invested in Robotic Process Automation (RPA) to automate back-office operations, such as data entry, which can help to reduce errors and improve efficiency.
- Cloud Computing: Financial institutions are increasingly using cloud computing to modernise their IT systems. This allows them to easily scale their computing resources as needed, improve data security, and streamline their operations. AXA, one of the largest insurance companies in the world, has begun using cloud computing to improve its IT operations and reduce costs. They have adopted cloud providers such as AWS and Microsoft Azure to run their various applications.
- Cyber Security: As technology usage increases in financial institutions, they are increasing investments in cyber security systems to protect their networks and data from cyber threats. Citigroup, one of the largest banks in the world, has invested in advanced cyber security measures such as artificial intelligence and machine learning-based systems to protect against cyber threats. It also has implemented various security measures such as multi-factor authentication, encryption, and threat detection and response systems.
- Open Banking: Financial institutions are increasingly making use of open banking, which is a set of APIs that allow customers to share their financial data with third-party financial service providers to gain access to new services and products. Monzo, a UK-based digital bank, is using open banking to enable customers to easily access their financial data and manage their money across different platforms.
As the industry continues to evolve, financial services companies will continue to adopt new technologies and explore new ways of using technology to improve their services and better serve their customers. The fintech industry is an exciting and rapidly evolving market that offers plenty of opportunities for salespeople, but it’s important to stay informed about the latest developments in the industry to identify new business opportunities and keep ahead of the competition.
Using solutions such as Selligence allows you to save searches for the companies, industries, and sales triggers that you’re interested in. They can be automatically added to your CRM, or sent straight to your inbox, so you can make sure you never miss a thing!