Fintech’s disruptive potential cannot be understated. Recent analyses from the US Treasury Department and KPMG (the creator of the vaunted, twice-yearly “Pulse of Fintech” report) have offered a rosy outlook for the space, which continues to threaten the way traditional financial institutions do business.
But for all the talk of creating a new financial paradigm, increasing numbers of companies are seeing the value of collaboration with fintech as a path to growth. This allows banks and fintech firms to leverage each other’s strengths – banks offer brand recognition, established trust, experience operating at scale and with regulatory compliance, plus ample capital. Fintech firms bring creativity, agility, digital infrastructure, and a customer-first mindset to the table – while mitigating their weaknesses (and avoiding direct competition). Traditional financial institutions can transcend their legacy systems, while fintech firms can scale profitably in ways previously elusive – assuming both parties can get out of each other’s way.
Meanwhile, a new type of service called techfin offers a new, different type of disruptive potential. Techfin describes a technology company who finds a better way to deliver financial products as one of their many offerings. Tech giants like Google, Facebook, Amazon, and Apple fall under this umbrella, reaping the advantages of their existing infrastructure. Fintech, on the other hand, typically refers to a non-traditional financial service that uses digital technology to provide a better experience (think Tickeron, PayPal or Venmo). Traditional banks can also offer fintech services (for example, through now-ubiquitous mobile banking apps) without truly being a fintech firm.
Techfin companies leverage their technical faculties to create a competitive advantage. In the era of big data, these companies use their skills in data collection and analysis to identify problems, build personalized solutions, and increase engagement, all in real-time. They are already digital and efficient, with large customer bases; most importantly, they have the brand recognition enjoyed by the biggest names in banking. That built-in trust means consumers are willing to take a chance on techfin financial products, all of which are built on the foundation of a superior technical experience.
Consumers are the ultimate winners in the competition between fintech and techfin, regardless of how the competition unfolds over time. Traditional institutions that can leverage the power of digital solutions will find success with customers who demand frictionless banking; technology companies with existing advantages can provide excellent financial services directly to their existing customers. They are two sides of the same coin – and customers continue to reap the benefits.
Tickeron is a Fintech Company with Artificial Intelligence-Powered Trade Ideas
Hedge funds and large institutional investors have been using Artificial Intelligence to analyze large data sets for investment opportunities, and they have also unleashed A.I. on charts to discover patterns and trends. Not only can the A.I. scan thousands of individual securities and cryptocurrencies for patterns and trends, and it generates trade ideas based on what it finds. Hedge funds have had a leg-up on the retail investor for some time now.
Not anymore. Tickeron has launched a new investment platform, and it is designed to give retail investors access to sophisticated AI for a multitude of functions:
And much more. No longer is AI just confined to the biggest hedge funds in the world. It can now be accessed by everyday investors. Learn how on Tickeron.com.