Three of the big terms in finance right now are blockchain, FinTech and RegTech. Powerhouses in their own right, these industries are also working together to remake our financial industry. For startups looking to break into the market, a knowledge of what these revisions are (or will be) is vital for survival in the new market.
Blockchain is gaining a much stronger hold on the market–last year’s venture capitalist investments totaled almost $1billion–and 2017 is looking to be the year it really makes its presence known. As it currently stands, major companies are starting to recognize its importance and increase its use. Fidelity, for example, is mining bitcoin and also accepts bitcoin as a currency in the cafeteria of its Boston office. As FinTech’s technology reduces borders, the omnipresent currency option offered by blockchain will become more important and used. This is very good news for (charity) startups like BitGive, as the higher prominence of bitcoin means a larger potential client pool.
Regulation is a major issue looming over FinTech startups, compounded by the fact that the depth and breadth of FinTech regulation has yet to be qualified by government organizations. This is where RegTech comes into play, serving as a partner for FinTech companies wanting to ensure they meet their regulatory requirements. Through the RegTech technology, FinTech startups can stay legal in a world steeped in regulations.
For a FinTech startup to survive in the changing market, its founders need to have a firm knowledge of what technology is needed and how said technology can make your startup stronger. Blockchain and RegTech are incredibly important assets for FinTech startups. Don’t forget about them, as these are the elements that will help your company grow.