What is Fintech and How it’s Disrupting Financial Services?

Over the last decade, a flood of digital investing solutions has emerged all with the goal of democratizing access to financial services via low-cost, digital-only solutions. These FinTechs provide simple onboarding, minimal minimum investment requirements, cheaper costs, and user-friendly interfaces. The next generation of wealth management disruption, on the other hand, is adopting a different approach – taking the best of what modern technology has to offer and hybridizing it into intriguing new solutions that give the best of both worlds. Fintech is having an influence on many aspects of the financial services industry, so let’s take a look at what it is and the disruption it is making.

What is FinTech?

FinTech (financial technology) is broadly defined as any use of technology in financial services or utilized to assist organizations in managing the financial parts of their company, including new software and apps, procedures, and business models.

FinTech, which was formerly thought to be more of a back-end, data center processing platform, has recently come to be characterized as the foundation for end-to-end processing of transactions via the Internet through cloud services. FinTech stands for Financial Technology, and it refers to the currency symbols and data that encircle the world.

FinTech is not a new concept. It has existed in some form or another for almost as long as financial services have. However, since the 2008 global financial crisis, FinTech has expanded to disrupt and transform commerce, payments, investing, asset management, insurance, securities clearing and settlement, and even money itself with cryptocurrencies such as Bitcoin.

When you think about banks nowadays, they’re actually technology firms if you look at where they spend their money. Organizations that supply FinTech have dictated the direction, form, and velocity of change across practically every financial services subsector in only a few short years.

Users today demand smooth digital onboarding, quick loan approvals, and free person-to-person payments, all of which FinTechs pioneered. And, although they may not now dominate the market, FinTechs have shown to be successful as both independent enterprises and critical elements in the financial services value chain.

How is Fintech Disrupting Wealth Management?

When it comes to financial advisers, more users are opting for AI and digital choices. Wealth management, particularly in the present generation, that does not utilize FinTech solutions is likely to encounter problems in the future since they are out of date.

Despite the fact that wealth management has long been an essential aspect of financial planning and management, FinTech addresses the shortcomings of wealth management. People choose FinTech or Robo-advisors because they employ well-researched judgments to provide services to customers.

It makes use of previous knowledge as well as the client’s demands and requirements to give the best service possible. Wealth management was, in fact, a one-stop-shop for customers seeking financial advice, counseling, or any other service. The arrival of FinTech has had a significant influence on financial markets. Fintech lowers the cost of financial planning and administration for individuals. People are drawn to FinTech because of its accuracy, quickness, low cost, and other benefits.

Traditional wealth management lags behind in the long term because it does not employ as modern technologies as FinTech. People in the contemporary world desire to stay current on innovations and technology. People instinctively enjoy FinTech because it allows them to do the same. Technology and digitalization are ever-changing fields, so keeping up with the latest innovations is a sensible move.

Rise of Self-investment Tools

There are a variety of tools and platforms available to help you invest money on your own. These platforms may be utilized alone or in conjunction to enable you to invest your money how you see appropriate – given you know what you’re doing.

The self-investment tools include digital brokerages, which make stock market information and investing more accessible, investing tools that enable you to perform investment research and compare stocks, or whether it is a portfolio management software that allows you to monitor and manage all of your assets from a single, unified interface. Financial services software serves as a type of intermediary. These apps, for example, connect financial applications and users’ bank accounts. With such self-investment tools you can have a greater portfolio and strategy transparency accessible “anywhere, at any time”, have better asset allocation techniques like having access to investment portals through mobile or tablet, leveraging mobile to improve security by including biometrics.

Key TakeawaysUsers may profit from FinTech in a variety of ways if it is offered correctly. Aside from digital experience and transparency, new competition is pushing down prices, and digital technologies are eliminating overhead and some manual procedures for investing. After all, when utilized correctly, technology may assist you in overcoming the apparently insurmountable issues that all investors face today. Are you looking for a FinTech platform that helps you diversify your portfolio? OroPocket is a universal FinTech investment platform built on the blockchain. OroPocket helps you grow your wealth by enabling you to invest in digital assets.