Fintech entrepreneurs and new companies are emerging worldwide. In the past, financial services targeted mostly wealthy clients. But companies now recognize the vastly underserved populations —people who could benefit from the growth and profitability of the financial services sector. Here are some significant fintech trends.
Fintech Entrepreneurs Driving Innovation
- Social Networks are Being Used to Reach Out and Expand the Customer Base. Underserved demographics dominate social networks such as Facebook, Google+ and others. These individuals are typically young, low-income and members of minority groups. This makes social networks the ideal places for targeted marketing aimed at helping these people improve their financial portfolios.
- Cash-In Cash Out. Despite some claims, reports of the “death of cash” are greatly exaggerated. While the use of cash is declining, nearly one-quarter of transactions are still conducted with bills and coins. Businesses realize this and are doing their best to facilitate a convenient conversion to digital transactions. Making this change will help underserved consumers, 47 percent of whom prefer cash transactions.
- Big Data Leverage. The sheer volume of digital information available makes it easier for businesses to track, store and analyze their customers’ habits. While this raises privacy concerns, it’s also making it easier for FinTech providers to improve client service needs. This unlocks access to credit, helps obtain loans for underserved people, and improves their financial situations.
- Scaling Services for B2B and B2C markets. Partnerships make it easier to expand services to needy customers and small businesses. Fintech entrepreneurs understand that offering complimentary services together, they achieve high growth and profitability. This benefits well-known brands and small start-ups.
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