Financial technology (Fintech) has taken over the technological revolutions and innovations are in existence today.
From rapid account transfer services, to open banking and even the yet-to-be understood cryptocurrencies, Fintech is redefining everything we know about money and how we go about our financial lives.
It is rather obvious that humanity has an innovation revolution on its hands.
The big question, therefore, is what to can be done about this revolution?
How can it be used to change humanity?
The points below depict some of these ways.
Fintech can Increase Security of Transactions
With the rise of easy ways to pay people all around the world, criminal elements have also arisen to jeopardize the payment systems which have been designed for these easy payments.
Fintech solutions can be invented to counter the moves of these malicious individuals who want to ruin the great stuff that people are doing the World over.
Such security solutions will give everyone a breather especially when all transactions that are carried out these days are electronic.
The bad news, however, there aren’t that many Fintech Security solutions yet.
The good news is that there is more than enough space for anyone who wants to catch the Fintech revolution bus to do so without thinking twice as security is always going to finance’s a most critical problem.
Fintech can Encourage Financial Inclusion
Among developing countries (even in the developed ones), the poor have little or zero access to banking systems.
This critical sector from which many million-dollar companies have emerged is always going to be one of the hottest areas for innovation as far as Fintech is concerned.
Innovations of all kinds are needed when it comes to getting the poor out of poverty and into relative comfort.
This cannot be done within the context of traditional finance systems.
All kinds of ideas no matter how crazy they may sound work well in this regard.
Retirement Solutions Need Fintech Innovations
The Social security programs of many countries are failing.
They fail to catch up with the rise in inflation that is steadily occurring across global money systems.
While the traditional money systems have done their best in making sure that retirements systems work to some degree, Fintech innovations can take social programs beyond the usual limits and create extra value that keeps up with the inflationary tendencies of today’s economies.
A dollar saved for pensions will not be able to buy a dollars’ worth in twenty years.
As such, Fintech companies need to figure out how to make that dollar to be able to buy the dollars’ worth of twenty years before when it was deposited.
This, of course, produces the kind of ideas that many hedge fund managers love and are willing to sell their souls for.
Of course, with the current Fintech revolution going on, these kinds of solutions will be possible and social security programs will fulfill their original purpose rather than serve as bait for investment failure.
Fintech in Health Insurance
With a rise in innovative ways to treat medical conditions, there has also been a corresponding increase in the costs of obtaining these often life-saving treatments.
As such, premiums paid by the working class may not be able to cover for these kinds of treatment methods which can mean life or death for many.
Fintech solutions in the health insurance sector could provide ways of giving people access to quality healthcare while at the same time maintaining a profitable business model for insurance companies.
Innovations in risk management models, the calculation and calibration of the appropriate premiums to pay, treatment regimens and a whole host of other factors could play out well when Fintech innovations step in and are applied to cases that need such.
It is often said that “health is wealth”.
Fintech Solutions in Logistics and Supply Chains
The use of Fintech solutions in logistics and supply chains cannot be underestimated at any level.
Supply chains can cost quite a bit to implement and maintain and it can break corporate or governmental budgets when considered from any perspective.
Fintech solutions such as blockchain implementation for all points across the supply chain can effectively lower the costs associated with logistics operations.
This, in turn, can give rise to savings that can be carried over to bottom line profits which though maybe razor-thin but are critical to ensuring that organizations stay afloat.
Supply chains historically speaking have always involved high elements of cost. The lowering of the cost is always the aim of any supply chain manager.
Fintech Solutions in Defense and Security
Keeping the homeland safe is one critical aspect of the government and corporate sectors alike.
Innovations are always in the offing to ensure that critical measures are taken to enhance security.
The problem therein is finding ways and solutions to finance and maintain the cost of security.
Fintech solutions can provide ways of being able to eat the cake and have it at the same time.
Members of the military always have money problems.
Fintech can provide solutions to specific sets of these problems.
Safety always comes first.
There are so many aspects of the Fintech revolution.
The question of making the most out of the current cycle is still the age-old one which all entrepreneurs have sought to answer: find a need and fill it.
What do you think?
How can anyone make the most of the current Fintech revolution?
Please let us know in the comments below!