Fintech and You: How Does Marketplace Effect You?

If you want to understand the sheer size and growth potential of the Fintech market, you need only look at its figures from the last five years. In 2014 alone, the rate of investment in this marketplace grew by a staggering 45% year-on-year, with $13.7 billion ploughed into relevant start-ups across the board.

Given the jargon, hyperbole and pace of change that defines this marketplace, however, it can be hard to translate its unique features into actionable benefits.

So, how exactly does this marketplace effect you, and what should we look for in the future?

Fintech: Changing the Way in Which We Access Personal and Professional Funding

The main impact of this increased investment has been to transform concepts such as borrowing, investing and completing payments, by leveraging technology and lending breaking down many of the barriers to entry that once surrounded these practices.

This has had a huge impact on businesses and individuals alike, particularly when it comes to raising money and optimising earnings. The pioneering peer-to-peer and crowdfunding models are underpinned by Fintech, for example, and these innovations have made it easier for people to access finance without having to sacrifice huge amounts of equity and collateral. This has proved particularly beneficial in the wake of the great recession, as credit scores have plummeted and households have found it harder to source credit.

Fintech has also removed many of the barriers to entry to the financial markets, which were once exclusive to large corporations, professional traders and corporeal, third-party brokers. The evolution of online trading platforms such as Oanda has changed the landscape completely, however, by providing investors from all walks of life with instant and real-time access to a host of markets and asset classes. These platforms also boast advanced learning and educational resources, along with numerous analytical tools and a demo account feature.

The Last Word – Will Fintech Continue to Grow in the UK Post Brexit?

While Fintech has changed the financial marketplace beyond all recognition over the course of the last decade, there are concerns about the future of this technology post-Brexit. After all, it is believed that London will no longer be able to compete as the Fintech capital once the UK has left the EU, as investment pours out of the country and overseas.

Despite these fears, fintech startups in the UK remain on track to attract a record amount of investment in 2017, with more than £760 billion having already been ploughed into firms and innovations that aspire to disrupt the financial markets further in the future.

Much of this investment will be focused on modernizing the traditional banking sector, as established lenders look to move with the times and leverage fintech to remain relevant.