When people talk about digital transformation, they are usually referring to the changes that have occurred following applications of digital technology into human society. For instance the Internet of Things (IoT) or Artificial Intelligence (AI) would be two key examples.
However, when we focus on such things, it is important to note that incorporating digital and transforming businesses to suit is not an easy task. However, despite this, many companies (especially start-ups) have shown that is really is worth exploring these digital avenues if you want to a) grow your company and b) boost your revenue.
The fintech industry, especially, has shown huge growth and digital innovation over recent years and is showing no sign of slowing down.
Let’s take a closer look to see exactly how the fintech industry is supporting digital transformation:
1. Innovative payments
The first thing to consider is how much easier paying for goods and services is now, with all the new, speedier and easier payment technology options we have. One particular method to note is the adoption of Bitcoin, the online currency. Although Bitcoin tends to just be flourishing in closed online communities at the moment, and is yet to become an everyday type of payment method, experts do expect it to continue to grow in popularity.
The fintech industry has encouraged growth in sectors that can provide companies, especially start-ups, with an alternative to a traditional bank for managing their finances. Traditional banking methods are often seen as slow and expensive, but within the international money remittances sector, the fintech industry is thus providing a speedier, cheaper method.
It is little wonder then that start-ups are now clustering around such new providers, many of whom offer a more innovative attitude and can-do mentality, as well as exposing the areas in which banks are failing to deliver.
2. Big data
Most companies will, by now, have heard of big data and the advantages it can bring. Having said that, many businesses still fail to quite grasp how many benefits this data can bring. The businesses that do understand, many of them start-ups, have greatly benefitted from fintech’s big data boom, and as a result, are enjoying access to a huge amount of behavioural data, and gleaning much from these insights.
The fintech industry makes no secret of the fact that big data analysis and action can help companies work more efficiently and be more productive. Indeed, if used properly, big data is an incredibly useful tool that businesses can use to innovate, improve customer experience and encourage revenue growth.
3. The Cloud
Most people will have heard of ‘The Cloud’. Indeed, many individuals will be familiar with the term because of the rise in demand for online storage and transfer services. In terms of business, however, the cloud is an incredible innovation from fintech, because it can help organisations save a great deal of time, storage and perhaps most importantly, money.
Although the cloud will not be able to provide a solution to every problem that an organisation might come across, it most certainly can help a business with its efficiency, security, and resilience. The great thing about the cloud is, because you’re essentially only renting space, you have the ability to scale up and down whenever you like. This is especially important for small and start-up businesses.
Crowdfunding, once again an area fintech is responsible for, has really risen to prominence over the past couple of years. The term, often associated with start-ups, is a method used by those who don’t necessarily have investors ready and waiting to invest funds.
It is a handy digital route to gain the investment needed via the means of smaller donations by many, and offers businesses a much more flexible way of accessing funds, and as such, is understandably popular. It has the great means to allow companies to raise the funds they need very quickly whilst also enabling businesses to avoid the often more stringent, slower routes of investment.