• Privacy policy
  • T&C’s
  • About Us
    • FAQ
  • Contact us
  • Guest Content
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
    • Lottery Results
      • Lotto
      • Set For Life
      • Thunderball
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
The London Economic
No Result
View All Result
Home Business and Economics Business

The explosion of the Fintech industry: Revolution or evolution?

The media is abuzz with the emergence of Finnish technology companies; and they’re markedly different from the norm. There is no doubt that consumers have been crying out for an alternative to traditional banking practices for a long time now, particularly when it comes to things like high remittance fees and transfers. But are FinTech companies […]

Sarah Smith by Sarah Smith
2016-05-06 12:39
in Business, Tech and Auto
FacebookTwitterLinkedinEmailWhatsapp

The media is abuzz with the emergence of Finnish technology companies; and they’re markedly different from the norm. There is no doubt that consumers have been crying out for an alternative to traditional banking practices for a long time now, particularly when it comes to things like high remittance fees and transfers. But are FinTech companies bringing about revolution or evolution?

 

The Argument for Revolution

fists

From peer-to-peer lending, to wealth management, to crowd funding – there is nothing that is off limits to FinTech companies. This new generation of start-ups was said to be worth an estimated £6.9billion in 2015; and they are growing fast.

Many of these companies continue to see billions in investment and are long past the experimental start-up stage. So who are these businesses? Well, there’s OnDeck and Lending Club, money lending companies, both of which have gone public. Then there are money transfer sites such as TransferGo, which have exploded in the last few years after bringing new business models to the virtual duopoly of the remittance industry.

 

So What is so Special about FinTech Companies?

The common thread that seems to bind all of these companies is a strong customer focus. This of course contrasts sharply with banks obsessed with risk following the economic downturn of 2008.

RelatedPosts

Corporate Catering Ideas 2025: Fresh Ideas for Feeding Your Team

Why Hyperscale Data Centres Are Turning to Liquid Cooling

Revolutionary Technology: How SPRIBE’s Aviator Redefined iGaming Through Innovation and Social Integration

Martin Lewis urges people born between 1986 and 2007 to put £1 in this bank account ‘ASAP’

They manage this using new ways of assessing risk. Traditional lenders remain steadfast in their reliance on a single credit score. By contrast, FinTech companies take onboard all the information they can get from social media and a range of other sources to assess how well a small business is doing. This in turn means that they are more likely to lend to companies whose credit scores were damaged by the recession.

In the remittance industry, costs are cut by restricting its operations to online and are therefore able to offer much fairer rates on currency conversions. This is a godsend for migrant workers who want to send money home and for companies that wish to do business with those overseas.

 

The Argument for Evolution

evolution

FinTech firms are start-ups and we are yet to see whether they will overtake traditional institutions in terms of popularity and investment; but at the moment, that simply isn’t the case. By 2015, investors had plied £6billion into Lending Club, but this pales in comparison to the £610billion in total credit card debt in the US alone.

 

Conclusion

There’s no doubt that FinTech firms are causing a much-needed shakeup in the finance industry. These innovative Finnish companies have breathed new life into the different industries in which they play a part, but they are by no means the dominant force.

So as it stands, this has caused an evolution, rather than a revolution. Yet this could change in years to come if traditional institutions don’t take notice and adopt new approaches defined by the younger and more vibrant FinTech firms.

 

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

← VIDEO – Liverpool fans greet team bus ← VIDEO – Clinton releases two brutal anti-Trump Ads
No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

-->