By FINTECH Books Contributor, Eleftherios Jerry Floros
FinTech has taken the financial industry by storm. It has revolutionized many financial services and products that used to be the exclusive domain of banks and brokerages. The latter have slipped in market share and reputation due to legacy banking and outdated technical infrastructures.
The potential for losing market share to startups is just one of the reasons big banks are pouring money into their own technology and startups.
What at first appeared to be just a buzz word, FinTech is now fully entrenched in society and millennials are jumping the train from legacy banking to FinTech. It is not only banking that’s being disrupted, it is also the financial industry that is being revolutionized. And the main reason for this is mobile and mobility.
Inevitable transition from analogue to digital has returned the decision-making process to the individual because we are no longer dependent on third parties such as financial consultants/advisors to give us advice, just about everything can be searched on the internet.
User-Experience and Digital Utility
User-experience is the single most important aspect of digital disruption. Any website, app or platform that is successful is the result of a carefully designed and crafted user-experience.
The likes of Uber, AirBnB and Amazon have succeeded beyond their wildest dreams because they have strongly focused on their user-experience.
Artificial Intelligence, Analytics Big Data
WealthTech innovators such as digital investment managers, hybrid trading platforms and blockchain platforms of all sorts are pushing forward innovative financial products and services that were not even existent a couple of years back.
Retail investors offered all the tools and information that traditional brokerages have used for the past decades in the simplified technological format of an app on a smartphone.
WealthTech will face a new competitive landscape where innovation and superior user-experience will disrupt traditional wealth management and usher in a new era of “customer-friendly” digital investment management enhanced by analytics, big data and artificial intelligence.