The GetLine Network http://getline.in/, a decentralized P2P lending platform, recently reached out to us with one of their infographics on FinTech, and we thought it was appropriate and timely for our audience.
The infographic below is entitled: “FINTECH & THE FUTURE”. As you all know, FinTech is the abbreviated name for Financial Technology, which refers to the technology we use for industrial and personal finances. The field of FinTech has really had a growth spurt since blockchain technology and cryptocurrencies came on the scene, enabling decentralized Peer-to-Peer (p2p) functions, which have disrupted many industries, including the financial sector. Personal finance has gone to the next level of development, and that has had to cross over into overall payment systems.
FinTech is enabling the fulfilment of certain technology predictions, such as a cashless society, banks becoming obsolete, and new ways of getting loans and capital being created… all of which have started to take place.
For example, QR codes, Near Field Communication (NFC) technology, credit & debit cards, tokenized assets, cryptocurrencies, and mobile phone digital wallet apps, have made it a possibility for anyone to conduct all of their financial affairs online via the internet and their mobile device, or a BTC paper wallet, or even other options, if they so choose to do so.
Consequently, some of this same technology puts into question the need for a bank. With wealth now being able to be acquired, held, and traded online or on a personal device, the perceived need for a bank keeps getting weaker as these technologies develop and strengthen.
Financing and loans are even being re-thought of with new forms of capital raising, such as ICOs, crowdsourcing/crowdfunding, and P2P lending, making banks and legacy financial institutions even less needed.
The infographic below focuses heavily on Peer-to-Peer lending, which is a system where loans are gained from multiple individuals, usually on a digital platform. This system bypasses traditional banks and credit bureaus and allows for individuals with less than ideal credit scores to obtain a loan. There are quite a few P2P platforms out there, including places like WeTrust, SALT, Dharma, and the GetLine Network. The latter is different than any other Peer-to-Peer lending platform to date, as they are decentralizing their entire platform with the Ethereum blockchain, and automating their loan processes through Ethereum’s Smart Contracts.
GetLine says they’ll be able to scale globally using this approach, and it will allow them to offer better services for everyone involved in acquiring a loan. With p2p lending estimated to have a huge untapped potential market (and having grown rapidly already), GetLine intends to tap into it by offering credit scores, legal digital identities, and loans to the unbanked of the world and to those with low credentials in general, while at the same time offering highly accurate default rate predictions, and high returns for investors.
The main point of the infographic is the future of FinTech. FinTech is expected by many to continue to grow rapidly and to cross paths with nearly every other industry in some way or another. It is also expected to become more prevalent in daily life. FinTech is likely to continue disrupting various industries, particularly that of the financial sector, and venture capital within that.
In 2011, global venture capital FinTech funding trends were at 312 deals and $2.2 billion dollars! That’s a lot. However, by 2015, around 4 years later, those numbers had grown to 848 deals and $14.6 billion dollars! It’s a huge industry, and there’s still plenty of more room for growth.
FinTech should also improve many different technologies in the future, like insurance & investments, cybersecurity, artificial intelligence, and blockchain technology, as well as bring us new leaders in the blockchain field.
Many experts around the world have been watching FinTech closely. This infographic contains quotes from Pawel Tomczyk, of Cyberius, and a blockchain enthusiast, Simon Cocking, the Senior Editor at yours truly (Irish Tech News), Amit Goel, Co-Founder of Lets Talk Payment, Kacper Wikiel, Co-Founder of GetLine, and Viktor Shpakovsky, Co-Founder of The Token Fund.
There’s also a couple of ideas on how to take advantage of FinTech now, found below.