FinTech has rapidly changed the way people save, invest, spend, and manage their money. From lending to wealth management to bill payments and transfers, FinTech has already reshaped our relationships with money in so many ways. It’s automated financial services and improved access to convenient banking around the globe.
Despite everything FinTech has already done to shake up our personal finances, it remains on the brink of disrupting much more to come. Industries that have been stuck in their ways and resistant to change are especially vulnerable. As new players eager to use technology to alter the landscape enter the field, expect to see FinTech deployed in a number of new ways that will disrupt the rules and change consumer behavior.
These are some of the top industries likely to get shaken up by new advancements in FinTech –
Real Estate Fees and Contracts
Blockchain technology provides a brand-new way of dealing with contracts. Smart contracts automate the transaction process by creating a system where funds are released, or an action is completed immediately upon fulfillment of the contract’s conditions.
For example, in a real estate transaction, a smart contract may be used to update a property’s registration immediately upon receipt of funds. It’s a possibility that streamlines what used to be a long and needlessly complex transaction process.
The company spearheading smart contracts in real estate is Nobul, founded by real estate maverick Regan McGee to shake up the way consumers find and work with real estate agents. Nobul is the world’s first true open digital marketplace for real estate agents, creating a competitive environment that’s changing the way agents approach their fees and service offerings.
Contactless Payments in Retail
The tap function on credit and debit cards turned out to be a huge boon for retailers during the COVID-19 pandemic. Allowing customers to pay without touching any publicly-used surfaces eased the minds of many, and several banks raised the spending limit consumers could use to tap for that very reason.
Tap is just the beginning when it comes to contactless payments, though, as major players like Amazon pioneer biometric payment methods that allow customers to pay just by scanning the palm of their hand.
Other contactless payment efforts have focused on letting customers do their shopping and walk straight out of the store, cutting cashiers right out of the retail model, relying on a mix of sensors and cameras to let people skip the worst part of shopping altogether.
Meeting Gaps in Insurance Services
While FinTech has already transformed personal banking services, it could also start to fill in some major gaps in the insurance industry. The insurance industry has noticed a dramatic shift when it comes to life insurance, with an alarming crisis of underinsurance.
One of the primary reasons people are unlikely to update or sign up for their life insurance policy is that they don’t want to go in for a physical examination.
That’s opened the door for companies offering life insurance entirely online, without the need for medical exams.
FinTech continues to expand its reach and transform industries far beyond banking. Expect to see significant changes in these industries as exciting startups forge new paths ahead in their fields.
