Firstly, FinTech is nothing new. The term came later, probably around the same time as the crypto currency Bitcoin. It is any use of technology in the area of finance, and through rapidly developing computers, phones and related software its uses are stretching to every corner of the industry.
So where can we see FinTech now?
Everywhere! From apps on our phones to PayPal and fingerprint technologies, this is FinTech we know. Slightly less known, but areas where we can expect big things:
It’s a type of database and underpins Bitcoin. The big banks think they can use this in future to make more secure transfers.
For example Atom and Tandem. You may not have heard of them now, but these digital only banks are expecting to become competitors to the big high street banks we all know and hate.
Image sourced from VentureRadar.com.
And where could FinTech take us?
The possibilities are endless! The more technology is used the better the products and services we could receive. The end result is that all financial transactions will be possible and instant with a couple of touches of your smartphone.
Need to drive a friend’s car for an hour – instant insurance.
Issue with a bank payment – intelligent ‘robo-advice’ through WhatsApp. (Could a robot be worse than what we have now!)
Want to manage your accounts more effectively? How about taking photos of your invoices and having them automatically included in your books.
In fact, the last one is already here. Some technologies are more advanced than we think but we just don’t hear enough about them.
The biggest hurdles are getting them publicised and getting people to embrace the new ideas, with so many innovations there is the fear that they won’t still be around in 2 years (Barclays Ping?).
What next for FinTech?
There is an increasing amount of investment available for new FinTech companies. Founders Factory are aiming to help 200 new tech businesses get off the ground in the next 5 years, inviting them to work out of their offices and providing them with the advice they need. They have recently partnered with Aviva to help ensure FinTech firms can benefit from this.
For these start-ups it’s important to know how to make sure that the grants and tax breaks offered to new technology companies are maximised.
Is your business digitally switch on?
The world of FinTech is changing fast, London now tops the rankings of the world’s tech cities so this is the time to act! As a firm Menzies is embracing the new technologies available to make your accounts as pain free as possible and our technology specialists understand the sector and give the right advice and guidance to ensure our clients can get their idea to market.
Comments provided by Mike Ayres – Menzies Manager – who works as part of the Business Services sector team.