Fintech has been quite an interesting topic in the past couple of years. The usage of a vast range of technologies within specific financially-related spheres has definitely been a big part of this year’s business analysis. Of course, when talking about fintech, the usage of blockchain-related technologies is the first (if not the only) topic which comes to mind and, given Santander’s recent bond, this has definitely grown in the recent past. Let’s analyse why fintech approaches could reshape the business world we currently know.
Big Data And Fracture Analysis
The usage of blockchain-based technologies hasn’t been the only major focus within the fintech sector. In fact, there have been dozens of examples of different data-driven and analytical technologies applied to fintech as a whole: big data for processing and fracture analysis has probably been the biggest one. Although it may sound overcomplicated to understand, this phenomenon is pretty easy to explain: when applying for a loan or any form of finance, normally, the system scans through a variety of requirements and, when met, it automatically approves or rejects the loan. This, of course, is very limited to the variables which the loan provider has set into place and, sometimes, these aren’t enough to approve or either reject a particular loan. The usage of big data and data points has, in fact, expanded these variables, including aspects like demographics, age, health and much more, which helped in approving or declining small loans, especially within the financial sector.
Why Blockchain Though?
The blockchain in fintech has been quite weirdly misunderstood in the past couple of years. Many associated the usage of numerical values in banks with the creation of specific Cryptovalues which could have been used by that very bank’s clients. This is relatively true but is missing the main focus on why banks like Santander have been focusing on this particular technology: the blockchain is used to connect, process and elaborate delicate data when users are applying for complex finances (i.e. big loans) or dividing their assets (i.e. bankruptcy). The blockchain, in simpler terms, is used to elaborate data internally and to find a solution (hopefully without human intervention) to problems which could take ages to get resolved.
The Evolution Of The Matter
It’s no secret that fintech-related strategies have been working massively towards applying relatively experimental strategies to more traditionally-focused financial sectors. With this in mind, it’s very interesting to see what some app developers have stated earlier this year: “We’ve seen a net increase in enquiries from banks who want to understand user behaviour and overall experience on mobile, whilst gathering their data”. Mobile and fintech have been relatively distant between each other and seeing tangible signals of a potential collaboration could open a whole new world of opportunities within the segment, another very important confirmation of how “mainstream” fintech could become in the nearest future.
Big data and mobile are the two biggest examples of how fintech is rapidly and almost “aggressively” tackling the mainstream business sphere. In the nearest future, we can expect crypto values associated with big firms to be used in day to day scenarios, like buying a coffee, for example. It’s easy to say, at this stage, that this sector is very likely to grow massively in a mainstream segment.