Innovation is something you can see in every industry. The iGaming industry, for example, has long been trying to win new customers with free offers: you can place a free bet simply by opening a new account. (You can take a look at such offers at https://bettingoffersfinder.co.za/free-bets.) Finance, on the other hand, is a sector where innovation has changed almost completely in recent years: FinTech companies created a market worth 115.34 billion dollars in 2021 alone, and this figure is expected to reach $936.51 billion in 2030[HE1].
“FinTech is changing not just finance but other industries,” says Tony Sloterman, product owner of Casino Bonuses Finder company. “It is now much easier to pay and get paid than before. iGaming is one of the sectors that benefit the most from FinTech advantages.” So how did FinTech come about and how did it get so big? Below, we will answer these questions.
The History and Evolution of Fintech
FinTech is a combination of the words “finance” and “technology”. In its simplest form, we can define it as the use of technology to provide financial services. This definition also means that FinTech as an industry started with the invention of ATMs in the late 60s. However, in the modern sense, we can say that the FinTech industry started in 2008 with Bitcoin and smartphones.
We started seeing digital banking products for the first time this year, and Banking as a Service (BaaS) platforms first appeared at the end of 2008. These platforms have enabled banks to offer virtually all their services online, regardless of the limitations of legacy systems. In just a few years, finance ceased to be an industry monopolized by the banks. Non-bank entities also started to offer financial and banking services: we can cite electronic wallet services (i.e., PayPal) as an example.
By 2022, the top three countries for Fintech companies are the US, the UK, and China. But statistics show that this industry is growing fastest in South America, so that list may change soon. There are 79 FinTech companies all over the world that deserve the title of “unicorn”: this title is used for companies whose value exceeds 1 billion dollars. Currently, the world’s largest FinTech company is San Francisco-based Stripe: its value has exceeded 35 billion dollars.[HE2]
FinTech is an innovative sector and already uses technologies such as machine learning and artificial intelligence. This is the biggest difference from traditional banks: if you work with a bank, you have to go to the bank. If you use FinTech technology, the bank comes to you and offers many innovations to make your job even easier.
Why Did It Get So Big?
This is also why FinTech is growing so fast: Users aged 50 and over are used to waiting in line at banks and dealing with countless bureaucratic details while making a transaction. However, there is a generation that sees these as meaningless and a waste of time: this generation wants to do it in seconds while sending money and receiving payments, and with the least possible effort. Fintech makes this possible because it is mobile technology.
Moreover, there are hundreds of millions of people in the world who do not have a bank account. FinTech applications enable these people to become a part of the financial industry too. Research shows that 88% of traditional financial institutions think they will lose a lot of value in the next five years, and they are not wrong: FinTech is really changing the financial industry with its costumer-oriented model.
published by Glusea