We are witnessing a revolution in the technological world. Every day, what we once knew as classic routines are being transformed by the development of mobile applications that we can carry anywhere in our pockets. Each sector is experiencing its own time for change, and a clear example of this is the transport sector, with the very practical application known as Uber. The financial sector could not escape this incredible innovation in the digital age.
In a world where there are almost as many mobile phones as there are people, it has become almost a necessity to bring technology to such a classic sector as banking, where the Fintech movement has made its presence known. Fintech—an acronym for "Financial Technology"—has become increasingly common to refer to any technology applied to financial services. Fintech scrutinizes all fields and sectors of financial services, examining the associated problems to find solutions that modify, in part or completely, those services.
The dramatic evolution of Fintech
Solutions such as payments and transfers, Mobile Banking, trading, loans and financing, retail banking, security and privacy, alternative currencies, digital wallets, financial advisory services, insurance, and many others are surely poised to hit the market soon. This is why banks must embrace this tech trend.
Small and medium-sized enterprises (SMEs), which account for more than half of the global GDP, have traditionally been ignored by banks, but Fintech aims to provide solutions to their financial needs. Fintech is changing the way SMEs access financing, control their expenses, monitor their money, or request a simple loan, offering alternatives such as invoice resale platforms and SME loans.
Although the Fintech method is not always welcomed by the banking sector, there are cases like BBVA that have taken a step forward and said YES to the possibility of incorporating technology into their traditional methods of providing services. The most visible part of this initiative is the BBVA API Market, a portal where one can access these APIs. This approach also considers the opinion of Dwolla, an American startup specializing in real-time payments, which already operates in the U.S. using the bank's APIs.
Fintech entrepreneurs have praised BBVA for its commitment to supporting this type of technology, recognizing it as a step that will shape the future of the financial sector. This move opens the door to creating new services and models of excellent user experiences, which is ultimately what matters most.
In a future blog, I will explore the different Fintech methods available in the market and how it is almost IMPOSSIBLE to ignore this movement that is set to change how we manage our finances. It will show how it is increasingly NECESSARY to take our businesses to the mobile world through a mobile application, get involved in this evolution, and provide a better, faster user experience.
