Fintech- What is it really?
‘Fintech’ is a phrase you may have heard used in the media and within technology circles but despite being banded about, it is a term even innovation academics, entrepreneurs and the tech savvy can’t get to grips with.
We’ve all seen fintech mentioned as an example of a digital innovation and an industry to watch over the coming years, but what exactly is it?
What is Fintech?
The most straightforward and rigorous definition found with an online search is that ‘Fintech’ or ‘financial technology’ is a new financial industry that applies technology to improve financial activities.
FinTech companies are businesses that use technological clout to create new and better financial services for both consumers and businesses.
This emerging industry has been used to automate insurance, trading, banking services and risk management. The products and services fintech offers include many categories, such as, lending; personal finance; investment; consumer banking and funding.
Why Fintech Matters to the Business World?
In the recent past the rise of fintech firms had been viewed as a threat to traditional financial services, like the high street bank and conventional investor. However, in the era of COVID – with the new challenges the pandemic has presented, the agility of Fintech company models has been advantageous. Being small start-ups with fewer overheads and less commitments fintech businesses can source funds and transfer money across borders quicker, easier and cheaper. The current perspective is that the traditional financial institutions will have to adapt to survive by embracing such technological solutions or partnering with fintech companies.
Fintech has been a great leveller and has opened up a whole world of opportunities. Businesses can offer services at a fraction of the price and with the rise of smartphones, fintech satisfies an individual preference for use of online apps to manage our financial lives.
Why Fintech Matters for Recruitment?
Not only does the sector employ 76,500 people, projected to grow to more than 100,000 by 2030, UK fintech firms are also predicted to create over 30,000 new jobs in the coming decade. This is a sector every recruitment agency should have on their radar.
Right now, London is one the best places to build and grow a fintech start-up too. Significant policy changes and reform of London’s company listing regime in the wake of Brexit is set to spark a ‘digital big bang’ in the UK in a bid to accelerate the growing fintech industry within the nation — according to a recent, government-commissioned review.
Fintech’s success depends on acquisition of talent and two big concerns are the lack of homegrown technical skill and the battle to keep talent from leaving these shores for the lure of the EU. The UK does not want to put its global standing as a leader in fintech at risk and it looks like talent management will be key to the UK remaining attractive and capable of future growth in financial services.
What To Look Out For?
Entrepreneurs and recruiters need to view keeping up-to-date with fintech developments as a vital part of their daily life. Being aware of the latest opportunities and developments within the field will only improve your business and help you stay at the forefront of your market.
In order to help you do this we have included a link to the most innovative companies and leading disrupters for financial technology in Europe, known as the FinTech 50. We also recommend looking into the up-and-coming virtual Fintech World Forum, in London, on March 25th and 26th.