Fintech, a concatenation of “Finance” and “Technology”, is a term coined for any business that develops and implements technologies to enhance or automate key aspects of Financial Institutions’ processes and/or services. Unlike traditional, slow-paced financial solutions, fintech companies focus on providing instant, scalable, on-demand solutions, giving asset management control back to the consumer. With the younger generation expecting a seamless experience for every transaction, application and aspect of their financial journey, financial institutions need to step up their game to streamline their services and ensure they meet the demands of the digital age.
How fintech is shaping financial services
Initially, when the term Fintech was coined at the turn of the century, it applied to the technology employed at the back-end systems of established financial institutions, but it now refers to solutions that have been developed for use across many sectors such as not-for-profit and educational services. An article written by Built In explores the symbiotic relationship between technology and financial institutions specifically,
“Fintech is not a new industry, it’s just one that has evolved very quickly. Technology has, to some degree, always been part of the financial world, whether it's the introduction of credit cards in the 1950s or ATMs, electronic trading floors, personal finance apps and high-frequency trading in the decades that followed.”
Every member of a developed country has likely used Fintech at some point in their lives. From the humble beginnings of ATMs, we are now spoilt for choice when it comes to trading apps, digital wallets and finance checkers, and we can expect the closure of many more physical high street bank branches in the coming years.
Fintech companies are on the rise
Companies that build and develop fintech are on the rise providing efficient and streamlined solutions that challenge and optimise traditional banking and payment services, driving real change in the industry. According to Beauhurst, a searchable database of the UK's high-growth companies,
“Fintech, or financial technology, is the UK’s strongest startup sector, with more investment funnelled into it than any other industry or vertical. A total of 1,373 fintech companies have hit at least one of our 8 tracking triggers since 2011, and collectively they’ve raised £14.9b in equity funding.”
Fintech is a fast-paced sector that is driving innovation in place of traditional, slow-paced methods and giving consumers more control over their finances with on-demand solutions. To find out more, visit this blog from Beauhurst, where you can explore the Top 50 Fintech Startups and Scale-ups in the UK in 2021.
How fintech is shaping asset and wealth management
An article by PWC warns what may become of companies that fail to evolve and implement new technologies.
“Asset and wealth managers should watch FinTech companies closely and adopt a responsive digital strategy. Otherwise, they face losing part of their business to new entrants.”
In their recent report, Beyond automated advice: How FinTech is shaping asset & wealth management, PWC’s research found that financial institutions implementing fintech solutions had focussed predominantly on automation of asset allocation
“by providing bespoke but affordable services to help investors set their investment goals, choose the right product or service and manage their investment portfolios”
Giving more control of finances and asset management to the consumer enables people to make their own decisions and find solutions that suit themselves, enabling them to respond quickly to unexpected eventualities, like a broken boiler or a loss of income. Consumers are now actively seeking out simpler solutions to their finances so that they can be as adaptive and reactive as possible.
How to help your financial institution repay monies
There is also one huge benefit of Fintech developments and applications; it’s helping Financial Institutions reconnect and keep in touch with their lost customers. Vestigium has industrialised the process of forensic tracing for asset reunification and/or re-engagement with Gone Away customers, specifically targeted to the Financial Services Industry. This reduces the scale of the issue, fast. Vestigium provides a Live Archiving Repository which periodically re-researches currently un-found gone aways against continuously updating data sources including the Vestigium Services consumer database. Vestigium believes this ongoing methodology helps institutions meet regulations including the FCA’s Principle 6, Treating Customers Fairly, and assists firms to meet the guidelines set out on the fair treatment of vulnerable customers.
Register today and let us help you reunite with your money or find out whether you are entitled to financial services products that belonged to your parents, grandparents or other relatives. Register your family's details FOR FREE and we will compare your information with the details of our caring client's lost customers to help you claim back lost assets, pensions and accounts. Remember that your parents, grandparents, or other relatives may have held financial services products that you are unaware of but entitled to, so it’s always worth checking to see if you’re due an unexpected remuneration.