Since cryptocurrencies’ inception, disruptions have caused a paradigm shift in the finance industry. It is safe to say that the banking and finance sector has been slow at adopting new technologies. For instance, there has not been any major innovative tech to take the place of credit cards since 1950. The slow maturation of FinTech can be attributed to the centralized nature of traditional banking. One thing is certain; FinTech has unlimited possibilities when assessing the current financial framework.
The Rise Of Fintech Within The Last Decade
Since the discovery of blockchain and cryptocurrency, many FinTech startups have surfaced to leverage digital infrastructure. Every day, new use cases come to fruition as the digital economy strives to enhance personal finance around the globe. Financial independence is something everyone should crave, but the traditional banking system makes it impossible.
The world is beginning to align with the 4th industrial revolution at an alarming rate. Some car manufacturers have begun to mass-produce electric cars that combine several new-age technologies. More systems have begun to adopt and integrate AI and machine learning into their operations. We can cite thousands of examples of how companies are successfully adopting emerging tech for different purposes.
No industry is left out when you start to study these emerging technologies. FinTech has awoken from its slumber and is looking for ways to make transactions easier than traditional banking methods. Many banks have begun to accept digitization, which puts operations on auto-pilot and creates a seamless approach for everyday clients.
Blockchain And Crypto
Blockchain is the decentralized distributed ledger technology that aids the safekeeping and secure sending of data. This is the tech that drives cryptocurrency, and it comes with some amazing features like immutability, decentralization, cryptographic security, and others. Its decentralization takes away 3rd party influence. Furthermore, it ensures that transactions are only facilitated between the two people involved in the transaction.
Blockchain and crypto paved the way for the creation of several solutions that cover a plethora of use cases. There are endless possibilities with both technologies on a macro level. The technologies have caused disruptions, and traditional banks have begun to adopt them to facilitate seamless operations. Crypto is the currency of the future, and that future is here already.
Blockchain Disruptors In FinTech
Which startups in Blockchain are disrupting financial services? Here are a few to keep an eye on moving forward:
The Alliance
The world is evolving fast, and relevance may depend on our abilities to adapt and use these innovative technologies. FinTech is picking its pace, and it does not want to be left behind like other times. The creation of blockchain-based decentralized finance (DeFi) opened a portal to more possibilities for the FinTech industry. In this digital era where most traditional systems are being replaced with digital solutions, FinTech is left with no choice but to adopt the use of blockchain and crypto for different banking purposes.
Just as crypto is growing unprecedentedly, Fintech systems and startups have begun to manifest in different parts of the world. Traditional banks are years behind FinTech companies in terms of underlying technologies. In order for banks to maintain market share, they will be forced to work with emerging FinTechs in some capacity.
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