New financial technology firms are threatening the traditional financial areas such as insurance, banking, and asset management by making new financial products that meet the needs of this fast changing world at a lower cost and with greater efficiency.
PricewaterhouseCoopers released a report named “Financial services technology 2020 and beyond” (http://www.pwc.com/gx/en/
According to the PricewaterhouseCoopers report, financial technologies will drive new business models. Their survey revealed that in the next five years, FinTech companies will take up more than a quarter of the current financial industry since they are offering better customer experience with greater convenience and at a lower cost.
The report also states that the technological changes in financial services are the most creative forces in the financial industry today.
The entrance of FinTech related services faces lots of barriers and regulations. Nevertheless, their high demand in such areas as wealth management and banking, has enabled them to remain in the competition.
The regulatory authorities have occasionally found themselves in a dilemma of fostering innovation or maintaining a meaningful oversight over the financial industry.
Robo-investing platforms are a perfect example. These are computer programs that assess someone’s risks, tailor a portfolio of investments for their needs and then manage the portfolio for them.
FinTech is changing the industry and it is an exciting time to be a part of it.
