No doubt our world is being shaped by new technology almost everyday. 10 years ago, you wouldn't have seen any of these fancy things like home assistants being offered at a mainstream level with affordability. While living at home has never been more easy and convenient, other industries are also being impact, from healthcare to banking. In banking, there has ben many innovations and improvements few have talked about. While we focus on new healthcare devices, we also shouldn't forget the way we interact with our money is changing. I'm talking about the rise of fintech, of financial technology.
In a broad sense, fintech represents the computer programs and technology that support banking and financial services. So think about all of those new interfaces and platforms being offered by companies. Originally, fintech applied to more of the back-end systems of financial institutions, but now there is a greater shift to consumer services. The biggest change is the focus on consumer versus simplifying things on the institution's side. Ernst & Young's 2017 Fintech Adoption Index says that 1/3 of consumers use at least two or more fintech services, which may not seem like a lot, but actually is considering how those numbers would be just 10 years ago.
First we have mobile applications. All of those bank apps that let you monitor your account - that's all fintech. They make our lives easier and also make us more reliant on our smartphones. Then you have apps like Robinhood, that are shaking up other companies because of its commission-free trading and simple mobile interface. Proper Marketplace, Lending Club, and OnDeck promise to reduce lending rates since it opens up choices to broader market forces. Now we have money transfer apps like Venmo where you can send money over. You better believe people use Venmo. College students use it all the time, and it's easy how it links up to Uber and other apps.
Then you have machine learning and artificial intelligence that helps with data analytics and marketing, and take out of the guesswork that many people have always relied on. Fintech also includes the rise of cryptocurrencies like bitcoin, which I've covered before. Don't forget cybersecurity. That's one of the most valuable advancements because you have to find ways to protect your assets as more of them move online an virtual. It may be awesome to have your money stored online, but you need to be able to trust the organization or company or app somehow.
Fintech has changed the way banking and trading works. Things that salesmen and bank branches handled are now at the tip of your fingers. There's no wonder that fintech startups received over $17 billion in 2016. In fact, CB Insights counts 26 fintech unicorns that are collectively valued at $83.8 billion.
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