Four Trends FinTech Entrepreneurs Should Take Note Of

fintech trends

Fintech is always changing, and there are some very interesting trends that are emerging this year. Where in the past, financial services have been targeted primarily towards wealthy clients, companies have begun to recognize that there are vastly underserved segments of the population — underserved segments that represent a tremendous potential for the growth and profitability of the financial service sector. As such, the following are fintech trends I believe are well worth noting.

  • Social Networks are Being Used to Reach Out and Expand the Customer Base. Underserved demographics dominate social networks such as Facebook, Google+ and others. These individuals are typically young, low income and members of minority groups. This makes social networks the ideal places for targeted marketing aimed at helping these people improve their financial portfolios.
  • Cash In/Cash Out broadly available and frictionless. Despite some claims, reports of the “death of cash” have been greatly exaggerated. While the use of cash is declining, nearly 1/4 of transactions are still conducted with bills and coins. Businesses realize this and are doing their best to facilitate a near-frictionless conversion to and from cash. This is imperative towards serving traditionally underserved consumers — 47 percent of whom prefer to use cash for their transactions.
  • Big Data is Being Leveraged. The sheer volume of digital information available is making it easier for businesses to track, store and analyze their customer’s habits. While this is raising privacy concerns, it is also making it easier than ever for fintech providers to customize their services to match the needs of their clients. This is unlocking access to credit and helping many underserved demographics obtain loans and improve their portfolios.
  • B2B2C is Making it Possible to Scale Up Service. Partnership is the name of the game, and these partnerships are making it easier than ever to reach out and expand services to underserved customers. Businesses have recognized that by joining together and offering complimentary service, they’re able to achieve tremendous growth. This is a benefit both for established and well-known brands who have the reputation to offer, as well as for smaller start-ups who have the clients.

I very am excited about these trends and will be watching them very closely. In fact, I would strongly suggest every fintech entrepreneur think about how they will impact their business.

I’d love to hear your thoughts on these and other fintech trends you’ve taken note of. Share with me in a comment below, or connect with me on Facebook, Twitter, LinkedIn and Google+

Photo Source: cooldesign via

About Carol Realini

Serial Entrepreneur, Mobile Payments and Banking Pioneer, Author, Board Member Carol Realini is a successful Silicon Valley executive and expert in financial service innovation. She has worked with leading financial institutions including MasterCard and Citi, as well as numerous multinational and regional banks, to change the way banking is conducted. In 2011, as a Technology Pioneer attending the World Economic Forum, she led discussions on alternative banking at their meeting in Davos. A serial entrepreneur, she has been recognized as one of the 50 Top Women in Technology by Corporate Board Member magazine. Carol is a huge believer in the potential of mobile banking and payments to create financial inclusion - where everyone with a mobile phone has access to affordable financial services that empower their life and work. To understand Carol's vision please watch the WEF video (click on the link below). Carol also mentors entrepreneurs providing wisdom and lessons learned from her four successful startup experiences.
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