Payments / Fintech
Money transfer relies on fintech. Financial institutions alongside other enterprises are left in the dust if they fail to keep up with the fintech trend
At RDC, we have many years of experience in Fintech and payments consulting. We lead thought in the global payments market accessibility, please find more information in our white paper, here. Our Fintech and payments consulting has supported companies like ACI Worldwide expand their global payment footprint. We did this by identifying opportunities, leveraging market intelligence, and developing go-to-market strategies. By building sales funnels for payment solutions around loyalty programmes with platforms such as Plintron and Digitalk, we boosted revenues. Our Fintech and payments consulting expertise extends to some of the largest financial institutions in the world. For example, working with Barclays, we set up a points-based loyalty system that raised the profile of mobility to the board.
Get in contact for support in:
- Fintech and payment strategy
- Fintech and payments market intelligence
- Business case development
- Fund raising
- M&A to support fintech and payments
- Implementation of fintech and payments into your operations
Fintech and payment use cases keep growing
Fintech, or financial technology, is the use of technology to improve and innovate financial services. We think of “Fintech” as an umbrella term that covers a range of technological innovations applied to financial services. Innovations have a range of complexity and novelty, from banks launching dedicated mobile apps to blockchain adoption.
We believe fintech is a huge opportunity to create new revenue sources in telecommunications. By partnering with existing financial institutions and new start-ups telecoms operators will be able to launch proprietary and innovative services. Previously unaddressed segments, like rural and the unbanked, can be leveraged to capture a greater share of wallet.
Some specific applications of Fintech include:
- Insurtech seeks to use technology to simplify and streamline the insurance industry
- Investment platforms allow individuals to easily invest in stocks, bonds, and other securities without requiring a traditional brokerage account. Examples include Robinhood and Acorns
- Mobile payments platforms allow individuals to make purchases and transfer money using their smartphones. Examples include Apple Pay, Google Pay, and Venmo
- Cryptocurrency (Bitcoin, Ethereum, etc.), digital tokens (e.g., NFTs), and digital cash. These often rely on blockchain technology, a distributed ledger technology (DLT) that maintains records on a network of computers without a central ledger. Blockchain is also used in smart contracts, which utilise code to automatically execute contracts between parties, for example between buyers and sellers
- Cryptocurrency exchanges allow individuals to buy, sell, and trade various digital currencies, such as Bitcoin and Ethereum
- Online banking platforms enable customers to manage their accounts, pay bills, and transfer money through a web browser or mobile app. They have become the norm for financial institutions
- Open banking is a concept that proposes all people should have access to bank data to build applications that create a connected network of financial institutions and third-party providers
- Regtech seeks to help financial service firms meet industry compliance rules, especially those covering Anti-Money Laundering and Know Your Customer (KYC) protocols designed to fight fraud
- Robo-advisors use algorithms to automate investment advice, lowering costs and increasing accessibility
- Unbanked services that seek to cater to disadvantaged or low-income individuals and promote financial inclusion. Traditional banks and mainstream financial services companies often underserve these segments. Fintech and payments consulting identifies where gaps in the market lie.
Evolution of Fintech
From the 1980s and 1990s, the development of the Internet brought about significant changes in the financial industry. Online banking became possible, and in the late 1990s, companies like PayPal and eBay revolutionised online payments by making it easy for people to send and receive money over the internet.
Since then, the rise of mobile devices and smartphones opened new opportunities for Fintech companies. Apps like Venmo and Square made it possible for people to make payments using their phones, and companies like Robinhood and Acorns offered new ways for people to invest and manage their money.
From the mid-2010s, Fintech has exploded. Start-ups have received billions in venture funding (some of which have become unicorns), and incumbent financial firms have gone on an acquisition spree as well as building out their own Fintech offerings. North America still produces most of the Fintech start-ups, with Asia close behind.
Today, Fintech covers a wide range of financial services, including banking, payments, lending, insurance, and investment. Fintech is a rapidly growing sector that is transforming the way people manage and access financial resources. It is because of this that Fintech and payments consulting is in such high demand. Fintech also includes the development and use of cryptocurrencies, such as Bitcoin with some touting it as the contender to traditional global banking systems. The most popular Fintech start-ups share distinctive features: they are a threat to traditional financial services providers by being nimbler, serving an underserved segment of the population, or providing a faster and better service.
Some Fintech trends to watch
To date, most Fintech activity focusses on the payments space. Mobile and e-commerce has led to demand from consumers and merchants who are poorly served by traditional providers. Other innovations that are entering the mainstream include alternative finance platforms, including crowdfunding and P2P lending. Our Fintech and payments consulting services have identified innovations that have been attracting the interest of Fintech including IoT enabled opportunities and Blockchain technologies.
Increased adoption of artificial intelligence and machine learning
Fintech companies are adopting AI and ML to improve the accuracy and speed of their financial services. This could include the use of predictive analytics to identify trends and patterns in financial data, as well as the use of machine learning algorithms to automate tasks like fraud detection and risk assessment. Using Fintech and payments consulting services will help demystify how to keep up with this trend.
Increased use of blockchain technology
Blockchain technology will play a significant role in the future of Fintech, particularly in the areas of digital currencies and cross-border payments. Transactions are faster and more secure due to decentralisation; this will become even more important as the volume of global financial transactions grows
Growth of the mobile payments market
The use of mobile devices for financial transactions will continue to grow in the coming years. Increasing popularity of mobile payment platforms such as Apple Pay, Google Pay, and Samsung Pay, drives this trend. Not to mention the growing number of consumers using smartphones to make online purchases using e-wallets. For example, Vodacom owned m-Pesa operating across Africa.
Financial services are among the most heavily regulated sectors in the world. Unsurprisingly, regulation has emerged as the number one concern among governments as Fintech companies take off. For the most part, governments have re-used existing regulation, but given how unique Fintech is, this often falls short of protecting consumers. Soon, more specific regulation will gradually arise across markets. Use Fintech and payments consulting services to understand how these regulations will impact your business.
Increased use of data analytics
Fintech companies will increasingly rely on data analytics to improve service accuracy and speed. This could include the use of predictive analytics to identify trends and patterns in financial data, as well as the use of machine learning algorithms to automate tasks such as fraud detection and risk assessment
Growth of the robo-advisory market
Robo-advisory platforms, which use algorithms to provide financial advice to investors, are expected to continue to grow in popularity in the coming years. The explosive entry of Chat GPT into the market has highlighted how lucrative generative AI can be for robo-advisory. These platforms provide investors with a low-cost and convenient way to access financial advice and portfolio management services. This is particularly appealing to younger investors who are more comfortable using digital platforms.
Global finance relies on Fintech
Fintech and payments play a critical role in enabling financial transactions and facilitating the exchange of goods and services. They provide a secure and convenient way for individuals and businesses to transfer money, make purchases, and manage their finances.
Fintech companies, with the support of Fintech and payments consulting services, are driving innovation by developing new technologies and services to improve ease of access. In addition, Fintech is helping to democratise financial services by making them more accessible and affordable for underserved populations, such as those in developing countries or those with limited access to traditional banking services.
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