Fintech funding is increasing. Just over a decade ago, we were spending a little over $5 Billion on financial technology – today we’re spending nearly $78 Billion. Why are we seeing that investment accelerate? Because the financial sector is ripe for disruption and investors want to make sure that they’re part of the financial future which is an industry that is estimated to make up 20% of a country’s gross domestic product.
Here are two reasons that the financial sector should anticipate disruption:
New Technology. Certainly you can’t go on any website without seeing the word “blockchain” (whether that technology is relevant to the website or not). But that’s not the only piece of emerging tech that is impacting the financial sector: big data and market predictions are certainly developing, crowdfunding technology allows for microfinancing of small businesses, digital security continues to be one of the chief executive’s concerns in the financial sector. All financial institutions are running to keep up or risk becoming irrelevant.
Shifting Customer Trends. Customers no longer feel like financial decisions and planning are the purview of specialists alone. 46% of affluent Millennials and 41% of affluent Gen X perform research online, make decisions and execute their own trades without ever turning to an expert. And trust in a brand is no longer determined by how long its been around. In fact, 76% of affluent Millennials are open to financial services provided by non-financial brands.
So how do you stay ahead of the curve? Crowdsourcing ideas allows you to ask for signals (like emerging trends) from your crowd, but also empowers that crowd to make suggestions and share ideas that will drive the business forward. That’s why lots of financial institutions are starting by asking their employees for new product ideas, process solutions, and more.
To learn more about innovation in the financial sector, download our complimentary infographic on the subject.