Fintech is a word that combines finance and technology. it is a field in which technological advancements merge with finance to provide the people with enhanced, improved and better financial solutions. It is an emerging field that is expected to conquer the world of finance very soon. Before fintech, the kings of the financial world where the banks, insurance companies, investment houses. With new and better innovations in the fintech industry, the success of these banks, investment houses, and insurance companies have been threatened. If the fintech industry keeps on upgrading and keeps on coming up with better financial solutions, these hubs will cease to exist.

There is no denying the fact that the pace at which the fintech industry is advancing is extremely fast and it is expected that 25% of the revenue generated by the financial sector will be at risk in the coming two to three years. technology has been seen hitting all major fields in the world today and has become a reason why consumers today expect technologically advanced solutions for everything. Taking into consideration this demand, the fintech industry is moving fast and providing the best technologically advanced solutions for the people using the financial services.

The role of banks in consumer transactions is expected to decrease significantly as today, the world is going towards an environment of the shared economy. Airbnb.inc and Uber technologies are all examples of how people are opting for peer-to-peer engagement. This P2P lending is taking place even in the financial industry such as crowdfunding. Crowdfunding is a perfect place for investors to find potentially profitable businesses and for the entrepreneurs to get the funds they need for their start-up. The relationship of the consumers with the bank is also deteriorating due to the emergence of better payment technologies. If the banks do not change their business models significantly, their role will continue to become insignificant.

Digital wallets is another example of fintech development that has threatened the existence and the business model of the banks. These wallets are present in the smartphones of the people and they can with very much ease and convenience, store, send and receive money. This is one of the major developments in the fintech industry and much of the investment is concentrated in the digital wallets. At very low costs, people can carry out their money transactions through digital wallets.

The fintech industry offers financial solutions at very affordable rates. The financial companies have a whole department which focuses on reducing the costs of services they provide. But the fintech industry has a low footprint which allows them to reduce the costs of their services. Not only are the fintech solutions affordable but they provide a much better customer experience.

The majority of users of the fintech services are the millennials. They are so used to technological advancements in every field that they wish to gain access to the best technical solutions to their financial problems rather than slow and traditional financial institutions.