If you know a bit about startups, you may know that Fintechs are hot now, especially in Brazil, where most of the local unicorns are in this industry. World wild the trend is also happening, and you can't even imagine how China is dealing with it. There are a few reasons why fintechs are growing so fast.
First, the term fintech is too broad; indeed, people are using it to make her or his startup more appealing for investors. Everything related to money is considered a fintech.: Payment methods, banks, insurance… One reason why fintechs are so successful these days is that, because it's too broad, there are many problems to be solved.
More than just a broad term, this is an old industry. The insurance industry, for example, is almost the same for about 100 years. On the other hand, there new markets coming in. Online payment is expanding faster and faster, you can buy one dollar beer with credit card in a Brazilian street. We use money every day, and fintechs brings more convenience for us so we will use.
Currently, there is no need to develop top technology to solve those problems. Some trends in this industry are:
Mobile technology: everything is going mobile, so does fintechs, and going mobile opens a new set of possibilities.
Digital only-banks: such as Nubank. Going digital means having cheaper costs. More people are mobile-only, which means digital-only as well.
Cybersecurity: Going digital opens new possibilities to have your money hijacked, so there is more space for security solutions.
Blockchain: this is such important technology that fintechs can leverage from it in many ways. Transparency and efficiency are what it can add in the first moment.
Artificial Intelligence: Same as blockchain, AI is huge, I believe it will impact your bank life mostly with chatbots, but there many other opportunities for it.
In sum, there is no need to spend a tremendous amount of money, and time, developing new technologies. Fintechs just need to create valuable solutions for the thousands of problems for millions of people who have money, us, face all the time.