It is certain that we live in an era of important innovations in information technology. It is very exciting for all of the finance professionals to consider how these innovations might change the future of economies and finance industry.

The Rise of FinTech

The financial services industry can also be defined as an “information industry”. Because payments, risk management, investments and all other financial services are based on broad information flow and a wide range of data. So it is inevitable that the rapid innovations in information technology will have a significant impact on financial services and will lead to a technological revolution in the finance industry.

The latest most popular information technology innovations such as blockchain have a direct effect on the most basic source of the finance industry, – Money.

Besides, as smartphones have become the new and easy way to access financial services, this also has a huge impact on the finance industry through digital payments.Thus, financial institutions need to start thinking digital because value-added services, security, omnichannel solutions and lower cost payments have become more than a trend and gained importance in digital transactions.

Impacts of FinTech on Financial Services

FinTech has all the potential to reshape the whole financial services. Because financial innovations have a direct impact on investments and savings which have huge effects on productivity and economic growth of the countries. That is the main reason for the rising interest in investing FinTech.