The Fintech sector has seen many changes over the years. From the introduction of whole floor-sized so-called ‘supercomputers’ through to the advent of the life-changing internet and beyond, the changes in the financial sector can be seen in global personal banking.
There once was a time when tasks like obtaining a personal loan, transferring monies or even making large payments, involved a long and arduous process that more often than not, was in the control of the big banks and institutions that had operated in the same manner for centuries. The internet changed all that, breathing life and energy into an industry that had become staid and bloated. All those personal and business banking tasks, insurance renewals and money transfers could now be conducted with a click of a button and internet access.
The role of the internet revolution in the Fintech world cannot be underestimated. It helped bring global banking and forex trading to the masses. Anyone with a phone and an internet connection can make a transfer or trade the financial markets. Forex trading became a $3 trillion a day industry, where simple tools like a future volume indicator mt4 could turn anyone into a Wolf of Wall Street. And now, the fintech world is about to scale even greater heights. This time, the technology fueling the fintech boom is Blockchain technology.
Blockchain has exploded onto the tech scene over the last few years. Having hit a peak in 2017, when the gold rush in cryptocurrencies saw Bitcoin (BTC) hit a top of $14,500, it seemed everything was being touted as blockchain improved. However, 2018 saw the cracks appear in the ICO world and those that professed to be running on blockchain to capitalize on the crypto gold rush were quickly found out.
One such sector which could not ignore the decentralized potential was the financial technology industry. Blockchain technology struck a chord with the general public. And what is not to like? Faster transactions, anonymous transactions and considerably cheaper transactions saw the peer to peer technology gain widespread usage. The big banks fearing not just competition, but possible extinction reacted. Slowly but surely, more and more banks and financial institutions started researching and developing how to best utilize blockchain.
By 2018, investment into Fintech technology reached record levels, as companies realized that they can’t beat or stop blockchain technology, so they might as well join them. Fintech investment rose substantially last year. Total global investment more than doubled, from $50.8 billion in 2017 to a record $111.8 billion in 2018. Already, with the first quarter of 2019 passed, there appears no letup in the blockchain-inspired fintech boom. With banks and even governments launching their own cryptocurrencies, the future of Fintech looks anything but staid. The blockchain is fueling the latest fintech revolution and the effects are being felt more and more all over the world.