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What Technology do FinTech Companies Need to Stay Competitive

Fintech or financial technology refers to technological development affecting the financial world. Fintech is a multi-billion-dollar industry encompassing all technology that facilitates payments and economic trades. Fintech is moving fast, and no matter what sector you work in, it’s vital to keep up to date with the current products and developments.

Over the past few years, more revolutionary startups offering exciting new financial products have emerged. Here we have outlined just a few financial technologies required for companies to stay competitive.

White Label Solutions

Although more commercial, the fintech world is beginning to embrace more white label solutions. Instead of creating their own fintech products, any company can harness the power of external and third-party financial technology developments and sell them to their end customers. There is massive potential for even non-financial companies to choose fintech white-labelling services as they become an option. It is unlikely that you will find a company these days that exclusively accept cash. In order to stay competitive and viable, companies, no matter the size, need to have the ability to process credit cards, wire transfers, etc.

Many businesses do not have the resources or knowledge to create their system, so using a full provider such as Stripe or SumUp to handle payments is the easiest and quickest way to provide safe and convenient systems now. Companies like SumUp have seen impressive growth, taking in a revenue of £116.4 million in 2019 and have become the subject of traders of all types, including CFD. You might wonder, what is CFD trading? Simply put, CFD or contract for difference trading means an investor does not actually own the asset itself but instead speculates on price movements in the asset, whether a profit or loss, making fintech startups like SumUp a popular option with investors who choose this method.

The Blockchain

People are becoming increasingly aware and familiar with the blockchain due to the growing prevalence and use of cryptocurrencies. But you may not realise that blockchain is valid for a wide range of different applications. At its core, blockchain is used as a decentralised way of validating transactions or commitments using a public ledger. Blockchain technology has many advantages, including increased security, privacy, and user autonomy, with its full potential still to be appreciated. Banks and financial institutions are leveraging this fintech tool to power their other innovations. Some of the world’s most well-respected companies have invested in blockchain, including Microsoft, Samsung, Intel and Mastercard.

Data Analysis

Data is becoming increasingly important, and today’s most competitive companies can collect large volumes of data and analyse it to draw meaningful conclusions about their customers and business environment. In the financial world, data is abundant, but the number of companies that fully exploit it is still somewhat limited. Increasingly, we see startups using fintech that can gather and exploit the potential of data analysis, including startups that are creating robo-investment advisors and providing intelligent tools for financial decision-makers.

Fintech is by far one of the most exciting sectors to follow, making our lives and business practices more straightforward, efficient and financially beneficial.

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