What is FinTech?
FinTech is a fad that is here to stay. FinTech or Financial Technology defines a business that provides financial services by optimizing software and technology. These companies are in direct competition with banks, delivering financial services and solutions to consumers. Because of the rapidly innovative movement of FinTech banks struggle to compete and match this progressive industry. As we become more digitalized we must accommodate and adjust our financial need of speed and precision.
With the ever-increasing popularity and profitability of Bitcoin (increasing from under $1000 a coin to $20,000 in just one year), FinTech is expanding rapidly around the globe. EY provides the statistics on the Global Adoption index 2017, stating that Canada has lower-than-average adoption rates but higher-than-average growth compared to the global average (Fig. 1). However, in just two years Canada has shown a FinTech adoption rate increase of 125%.
Startups and small to medium businesses who require flexibility are beginning to move to alternative online financing such as digital wallets, mobile banking, and crypto-currencies. Lendified, a Canadian company specializes in online loans providing small businesses up to $150,000 in 48 hours. This encouraging process allows for an express increase in start-ups throughout Canada. However, there is an alarming amount of Canada’s population that aren’t aware or knowledgeable about FinTech and therefore are weary on its domination of the market. 22% of the EY survey respondents in Canada did not know what FinTech was, the highest rate out of all the countries studied.
At destinationoneTech we believe as millennials become entrepreneurs and owners of businesses the world of online finance will control the industry. In 2018, there will be another major increase in adoption rates of FinTech in Canada. Do you agree? Share with your friends and comment below with your opinion.