“The new normal”: How fintech is taking over

A poll shows growing figures of people across the globe using tech for their finances

“The new normal”: How fintech is taking over

As the use of technology continues to rise across the globe, experts say this will only continue as ‘digital natives’ become more dominant in the workforce and in social roles, showing the need for mortgage brokers to adapt their businesses to suit.

More than half of banking and financial services customers around the world are already using fintech products and services, according to a new global poll by a financial advisory group.

When it comes to using fintech apps to send remittances and money transfers, 67% said they did and 46% said they used financial technology to track investments and/or accounts.

The figures highlight the staggering rate of the digitalisation of our everyday lives, according to Nigel Green, the founder and CEO of deVere Group.

“Even two or three years ago, that figure would have been significantly lower,” he said.

In a new age
The survey painted a broader picture of Australia, with participants from the UK, Europe, Asia, Africa, Latin America and Australasia – and the rate of tech use is “speeding up” everywhere.

“From self-driving cars, genetic bio-editing to AI, new technologies are beginning to impact every part of our lives. Our financial lives are no exception.  We’re in a new age,” Green said.

This means banking customers and home loan borrowers are turning to technology more than ever, and more and more fintechs are emerging to create faster and easier platforms for people to access finance.

One such platform is Athena Home Loans: a self-professed ‘home loan disruptor’. The group has gone from strength to strength and recently won the Emerging FinTech Organisation of the Year at the 2019 Finnies in Melbourne last month (June).

When it launched earlier this year it was clear in its message that it was not a bank and would be able to pass its savings on to customers with lower rates and could provide more efficiency with its technology.

Not only making it easier to apply for a home loan, the fintech helps the borrower customise their loan and pay back their loans faster.

“Fintech firms are filling the void left between what traditional financial services companies are offering and what customers are now expecting, especially in terms of customer experience,” Green added.

“In broad terms, this means immediate, on-the-go, 24/7 access to, use and management of their money. It means personalised, on-demand services. It means lower costs.

“Fintech is already a major disruptive presence in the financial services marketplace. This trend is only set to grow as ‘digital natives’ - the first generation that grew up with the internet and smart devices – become ever more dominant in the workforce and in social and political roles.”

Three cheers for fintech
According to the data collected by deVere, emerging markets in Asia, Latin America and Africa are becoming the biggest growth areas for participation.

“This could be due to fintech typically offering more inexpensive solutions compared to traditional financial services. Also because these areas are home to many of the world’s 1.7 billion unbanked or underbanked population – those who don’t have access to or have limited access to financial institutions – and fintech allows this issue to be overcome,” said Green.

“Fintech – a major part of the so-called 'fourth industrial revolution' – is a positive force for three key reasons.

“First, it is meeting clear and growing client demand for on-the-go services.

“Second, it is speeding up the advance of financial inclusion across the world. Helping individuals and companies successfully manage, save and invest their money will only result in a better society for us all.

“And third, it gives firms the opportunity to diversify, cut costs, meet regulatory requirements and improve the client experience, which will help build long-term relationships and trust.

“The poll underscores that fintech is the new normal.”