What does good fintech innovation look like?

The words “Fintech innovation” have been tossed around all over the world lately, with very little understanding as to what they mean, what they accomplish and who is truly integrating them in their local economy.

Recently, these two words have been hijacked by the blockchain technology. Almost everything regarding fintech is now somehow involved with cryptocurrencies as they are labeled as the biggest innovation this sector has ever seen.

Although the reality is that cryptocurrencies are the combination of finances and technology, it doesn’t necessarily make them fintech in my opinion. I think they have a different sector, the blockchain sector.

When it comes to Fintech innovation, we need to take a look at the projects that don’t stray too further from what we currently have as traditional finance.

So, what does true fintech innovation look like and who’s doing it? Let’s find that out.

Fintech is all about speed and user experience

At the core of every project, lies some kind of value that it is providing for the customer. With cryptocurrencies that is the speed and efficiency at which people can purchase goods online, and with fintech it is the time and effort it takes to take care of our daily financial chores.

However, like any understanding, fintech, as well as crypto, is susceptible to misunderstanding. With crypto, the misunderstanding is that it is a digital asset, an item or good that people trade in order to find profit. This may be true with the current market reality, but the actual reality is that this product was developed for a more retail-focused goal.

But, there are signs of straying back to the real goal of cryptos nowadays, albeit in the shadow of the current goal of trading them on an exchange. According to this Bitcoin Trader review, many crypto companies are now trying to add “autopilot” or “AI bots” to trading activities for investors. This is exactly what fintech should be all about and here’s why.

Why most fintech is centralized with banks

Most of the innovation we hear in the fintech industry is centered around banks. Be these digital banks, mobile banks or otherwise. The reason is that due to an already concentrated market around banks, people are more likely to be exposed to fintech, thus we get so many products.

Furthermore, banking is not necessarily something enjoyable, right? Standing in queues, waiting in line, exchanging cash for hours on end is definitely not something we want to do. Enter digital and mobile banking. People are now able to do online as they could offline.

This is the true essence of fintech. It is about making life more convenient, fast and efficient. As long as startups focus on the money-making capability of their product, fintech will, unfortunately, continue to remain in the banking industry as that’s where most of the profit is.

However, we are now seeing an oversaturation of banking, which, according to history, leads to diversification into other markets and therefore a more meaningful change in our daily financial lives.