Rapidly progressing technology and economies, ever-changing customer expectations, and an improving regulatory framework is unlocking the potentials of disruptive innovation and financial services, and a lot of countries are embracing it. From peer-to-peer lending, big data, to cryptocurrencies, fintech innovations are taking over the interest of investors, customers, and countries as a whole. Ever since its introduction in the UK and the US, it has gradually spread to the rest of the world. In recent years, after the technology’s expansion, the majority of fintech industries in countries around the world are maturing. Also, there is a continuous growth of new fintech hubs and startups. This only further shows that the industry has a long way to go with regards to its full development.

Disruptive financial innovation is not going anywhere any time soon, posing a threat to the standard framework of the financial world, and it is however creating more opportunities for growth and positive change in the industry than of disruption. The financial industry is currently making efforts to understand the innovation that will be most relevant in the field and also figuring out the specific implications of fintech on current institutions and the evolutionary path of the rising innovations.

The Spread Of Fintech

The fact that there are several new startups in the industry suggests that investors are shifting their attention from countries where fintech is more prevalent and are seeing more potential in countries with more conventional financial setups and their financial markets. Fintech is making waves in the trading of CFDs. Financial technology has brought about new opportunities for non-institutional investing. It has made it possible for the average investor to gain access to high net contracts, giving them access to the world markets, boosting diversification of portfolios, and the reduction of risk. However, CFDs are highly risky and may not be ideal for all investors, so before starting trading, one really has to understand what CFDs are. It’s an abbreviation for Contract For Difference trading instruments.

One of the main areas where you can truly see that fintech is spreading fast is in the number of emerging fintech cities, funding congregates, and talents (hubs), which are succeeding in the global area with disruptive financial services. A majority of these startups aim at becoming well-established centers for fintech and want to also be a contributing factor to a more advanced financial service system in the future. And for them to succeed, there are several factors that have to come into play such as talent, access to funding, and the approach of the appropriate regulators.

Fintech has not only revolutionized the banking systems, but it is also taking over the financial world as a whole, and the financial markets are not left out. In the past, the focus of fintech was more about forex trading executives and venture capital investment specialists, however, just as there is a development of other sectors with new innovations, so too has forex businesses embraced financial technology and brokers such as the Axiory broker has embraced fintech to accommodate the growing interest of customers for better transaction experience and providing them with several options for payment while making their transactions easier and faster.

Drivers of Digital Disruption

The factors that are driving digital disruption in finances are both driven by the demand and supply for technological developments and changes in consumer service expectations respectively.

There are very vital impacts for the welfare of the participants that may render the payments for financial services lower, such as low payment systems, cost of financial transactions, insurance, financial advising, and better financial products for consumers in the market that come to play when using new technology.

If you look at the world around you today, you would notice that almost every sector in finance is being reshaped by technology. Bringing a simple and more connected lifestyle to users leading to the personalization of insurance and low take away cost for users more than ever before. Social trading platforms and Robo-advisors are also changing the investment management game, flooding the major financial markets while discussing prospects for the return of white-glove advisory services.

One of the sectors that are completely being reshaped at an alarming rate is the banking and securities sector, providing a smooth take over for fintech. Credit cards and cash are being taken over by digital alternatives that will definitely give financial institutions some influence over transaction experience.

Disruption is not an event that will happen just once or an event that is bound by the fiscal year. It will continue to happen as long as there is continuous pressure to innovate, to provide customers with the best financial services. However, technology has also affected certain areas like human resources adversely to a lesser extent. But to a greater extent, the new technology is reshaping the financial sector for the better.