Here’s Why FinTech Will Trump Trump
Recent political events have shocked the world and many questions are now being raised about what this is going to do to the market and where the world is going to go from here. For startups needing a strong market to build their business, a shift in market interest or a loss of investment capital could be devastating. If you are one of the people who is worried that 2017 will see the stalling of the FinTech momentum and the return to the stranglehold of big banking, here are three facts to calm your fears:
i. The outgoing U.S. Democratic Party made it a point to stress the importance of the FinTech industry in the modern business world and released a final whitepaper, A Framework for FinTech, to lay out their policy framework and the future of the process. The ten principles were:
- think broadly about the financial ecosystem;
- start with the consumer in mind;
- promote safe financial inclusion and financial health;
- recognize and overcome potential technological bias;
- maximize transparency;
- strive for interoperability and harmonize technical standards;
- build in cybersecurity, data security, and privacy protections from the start;
- increase efficiency and effectiveness in financial infrastructure;
- protect financial stability; and
- continue and strengthen cross-sector engagement.
This whitepaper clearly lays out how to keep the thriving industry moving forward and offers the new government a clear plan for them to follow. If the paper successfully appeals to the business side of Trump, he will see the economic need for a thriving FinTech industry and will take the necessary steps to ensure the transition goes smoothly.
ii. 2017 already has multiple conferences set up to explore the increasing importance of the FinTech industry. Spanning the globe, these conferences clearly illustrate how deeply FinTech has infiltrated the world market and how quickly companies are moving to embrace the new technology. If you want to know where the FinTech industry is going, pay attention to what these conferences are presenting.
iii. Mobile banking continues to thrive. This should not come as a surprise, considering the ease and low cost of this technology. As the millennial section of the market continues to gain power, mobile banking is becoming more prominent and startups that cater to the unique needs of this demographic will in no doubt thrive in the coming year. Cybersecurity that focuses on cell phone transactions will be well received as the need for secure financial transactions will increase as the mobile banking market grows.
Don’t dismiss FinTech yet, as it definitely has the power to withstand any changes that are coming in the market. With such a strong base and a real need for the technology and security FinTech brings, this is not an industry that is going to go quietly into the night. You may have to brace for a bumpy ride at parts, but FinTech is still an excellent investment.