You’re probably suitably justified, but when you’re depositing some money to play on one of the best Australian online casino sites on the go, do you ever stop to think about the amalgamation of the two industries that come together to make that simple transaction happen? Technology and the financial sector come together to make up FinTech…
Plaid is one of the leading open banking startups in the fintech landscape, worth $13.4 billion. Plaid helps other FinTech startups such as Robinhood connect customers “bank accounts, view balances and make payments. Banking as a Service (BaaS) is a trend in the fintech industry that uses APIs to provide access to banking infrastructure for companies outside the financial sector.
Despite the slow roll-out, open banking is revolutionizing the FinTech sector. Technologies such as open banking APIs, blockchain, and artificial intelligence enable FinTech founders to level the playing field and attract legacy businesses. Old names in the financial sector are choosing to invest in FinTech startups to gain foothold in the burgeoning digital banking industry.
Financial institutions also see Open Banking as an opportunity to facilitate the networking of data between banks and fintech startups. Similar to open banking APIs that enable users to provide their bank details to fintECHs, new platforms will allow them to access payroll, insurance, credit and ERP information. In 2021, some FinTech experts believe that transactional financial institutions will work with FinTech companies.
In this way, wage and financial services open up new opportunities for employers, businesses, lenders, and fintech companies. Payroll FinTech companies offer FinTech banks the ability to divert paychecks from established checking accounts and offer payment and credit services. Supporters of FinTech payroll speak of the service from a financial wellness perspective as analogous to the struggle of small businesses, the struggle of FinTech payroll moving up the value chain of deposits and payments.
Fintech banks offer a wide range of advanced functionality, including hybrid banking services and financial management apps. Open banking platforms such as Santander and Monzo allow users to check income, transactions, mortgages and loans, and fintech lenders account for a whopping 38% of the country’s credit sector, while their personal bank accounts offer advice on investing and saving.
As the floodgates open, a number of companies are embedding finance in their offerings, and an increasing number of traditional banks are offering their services through companies such as the BAAS model. Traditional banks have introduced the BaaS (Bank as a Service) system and it has raised high expectations of those embedded in the financial sector to support it.
The financial services industry is no exception, and FinTech has become more important in 2020 as companies drive digital change in response to the ongoing crisis. In particular, the COVID-19 pandemic has accelerated the demand for digital products and services and drastically reduced the extent to which FinTech presents challenges and opportunities for all types of financial institutions. FinTech developers will need to keep these trends in mind when they develop new applications and services to deliver the functionality and performance required by the financial industry, something which the best online slots platforms ensure is always optimally operational.