For many years, insurers and banks have implemented some high profitable business models. Nowadays they find themselves surrounded by innovators who are seeking to disrupt their businesses. The innovators are very diverse peer to peer lenders, Bitcoin, crowdfunding, mobile payments, etc. The financial services have shown some resistance in the past assaults by some innovators.
Strategic use of data
User data has always been a huge impacting factor for financial institutions. Bankers, for example, are making huge decisions based on your credit, while the insurance is requiring a health exam or looking at your driving record before issuing a policy. As time went on and people started getting more connected through their devices, new real-time data has emerged. Innovators took that chance and used that information to support financial decision making.
In the meantime, a new type of insurance company started to generate streams of information that was helping them to make better decisions and use that to embolden their privacy holders to do the same.
Mobile phones and apps
Over the years as smartphones became more and more common, investors professional and also casual got the idea to find ways to access the financial market through their smartphones. While the top online trading companies have their apps, there are also some companies that are existing only in the form of mobile platforms. Doing that they are putting apps on the edge of financial tech.
Smartphones have over the year evolved and transformed the lives of many investors, their way of trading and even the way they are living. Strong trading apps made possible to some traders to never go into an office in their whole life. Trading with their smartphones made their life so much easier that they can travel across the whole world making money from their stock trades through an app.
The most popular virtual currency is called Bitcoin. It was first introduced in 2009. These virtual currencies are still not mainstream in the financial service, but they are gaining popularity as time passes by. The primary purpose of virtual currencies is to reduce the cost of trading and increase the speed of transactions. With the use of virtual currency, people would avoid the currency exchange. There are a few people that use virtual currency because most of them believe that is very unstable and unreliable.