Financial Technology (FinTech)
An important field of implementation for the blockchain industry are financial services in general and financial technology (FinTech) in particular. The financial industry is exposed to a changing environment. In an increasingly globalized word, changing consumer preferences and technological achievements affect financial services to a high degree. Financial institutions face increased competition in form of non-financial institutions and FinTech startups. These new market entrants aim to provide improved financial services by leveraging the newest technological advancements and by introducing alternative products. Usually, FinTechs are characterized by their lean and flexible structures, which allow them to quickly react to changes in demand, the market structure, technology or consumer preferences. Contrary to established market participants, like banks, FinTechs are able to focus on the optimization and the provision of one single financial service or product.
Blockchain likely represents the biggest technological innovation in the sector of financial services as its adoption holds the promise of cost reduction, additional earnings, efficiency and transparency.
See below the “Blockchain for FinTech” report we prepared in collaboration with Upchain.