Initially a highly regulated, non-disruptive industry dominated mostly by banks, the world of finance is now shifting to more flexible methods of operation. Prior to the increase in popularity of fintech firms, the process of obtaining capital had involved tediously going through layers of regulations. Even though lower interest rates made capital cheaper, additional procedures and protocols increased the complexity of accessing such capital through the traditional banking channels. As a result, these raised newer barriers for both lenders and debtors, which in turn further fueled the chase for alternatives.
It can be said therefore, that the advent and consequential popularity of fintech firms came at a most opportune time. Taking into consideration the trends following the crash of 2007-08, it has been consistently observed that people are slowly but surely finding more reliance in being able to manage their money and businesses online.
Evidently, a large number of startups are now ready to revolutionise the industry, ranging from innovative online payment solutions to wealth management and involving dimensions as diverse as peer-to-peer lending and crowdfunding.