Fintech has completely changed the financial world. It has revolutionized banking, investing and financial management, allowing companies to streamline and automate their systems, along with making them more accessible. However, even though current technologies still get the job done, the industry is a rapidly changing place; new innovations such as DeFi and Quantum Computing are constantly being developed.
Bardya Ziaian is the founder of SITTU Group Inc. His background in fintech and financial management allows Ziaian to provide clients with resources and advice on how fintech can shape and grow their businesses. He is passionate about the rise of fintech in all industries, and its ability to be used in multiple ways.
“What is great about fintech is that it is for everyone,” says Ziaian. “It isn’t only designed to help one demographic. It doesn’t matter if you’re a gig worker, work a traditional 9 to 5 or work a corporate job – fintech has made resources that can assist anyone, with any background. The new developments within fintech have only continued to expand the demographic of users.”
When we take a look at the way we do digital banking today, we see the influence of fintech everywhere. Transactions have changed—now faster and more convenient than ever before—and banking apps offer services to help people with money management. Beyond just budgeting and automated savings resources, fintech has continued to evolve, causing many to turn to fintech companies for guidance. “It can be very difficult to stay up to date on the latest developments,” says Ziaian. “It is our job to provide technology solutions and advice at SITTU Group. We’re here to be the eyes and ears of our clients.”
One such evolution is the use of blockchain technology, which has been instrumental to the automation of finance. With its ability to take multi-step systems and processes and weave them together in the backend to create instant results, blockchain tech has reduced the cost of financial transactions, making banking and investing more affordable for consumers. Its distributed design also makes hacking nearly impossible, especially on larger chains such as Bitcoin.
The emerging technology “DeFi”, or decentralized finance, utilizes blockchain to perform many of its functions. It is designed not to have a central regulator (unlike traditional banks), but instead to operate through digital assets. As with any technology, there are still risks that should be considered. “Many small businesses may be drawn to DeFi technologies, since they offer the possibility of earning full interest because they don’t have to go through a bank,” Ziaian explains. “However, while blocks in the chain are very difficult to alter, most DeFi markets use software systems—and those can be hacked.”
Nonetheless, just because there are risks doesn’t mean that a new technology should be disregarded. “One solution is for them to partner with fintech companies that are knowledgeable on the risks,” notes Ziaian. “In this economy, I understand that small businesses may feel that this is a risky investment, but it will absolutely pay off.”
Beyond blockchains and DeFi, quantum computing and the use of qubits is opening even more doors in the fintech world. While currently still in early development, the possibilities for creating revolutionary systems with these quantum computers are endless; when combined together, qubits are able to store information exponentially, giving them immense processing power and allowing for incredibly fast problem solving. Their probabilistic computation style could be used to create highly detailed financial models, risk profiles, and increase fraud detection accuracy.
As more and more fintech start ups open their doors, the growth and development of fintech will only continue to climb. Individuals are seeing that traditional methods of lending, saving and investing are no longer the most effective way to manage your money.
Fintech isn’t slowing down any time soon, and neither is its ability to change how you reach your financial goals.
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