< Back to Articles

How FinTech is Changing the Finance Industry.

23 December 2019
How FinTech is Changing the Finance Industry.

Once used exclusively as a back-end technology to support the smooth processes of traditional financial services, FinTech as a concept has evolved to encompass nearly all our daily financial tasks due to its commercialization, convenience and ease of use.

Financial technology applications are spreading like wildfire around the world, and today the term includes RegTech, InsurTech, payments, transactions, financial data APIs, banking and mobile banking. Most commercial entities are either using FinTech to empower their business processes or express interest in doing so, and with good reason. FinTech has almost eliminated the tedious traditional processes that FIs and banks have adhered to since their existence, but that does not mean that the thriving industry is free from challenges. Here are some notable benefits that define FinTech as we know it today.

Cutting Costs

Traditional financial processes by definition incur costs on both financial institutions and their customers, and digitization has dismissed many of those costs as smarter solutions emerge. FinTech applications that reflect physical entities have definitely enabled banks and other FIs to save billions while automating processes and improving efficiency across the board.

Better Decision-Making

With the introduction of artificial intelligence (AI) and machine learning (ML) in digital processes, decision-making has reached a higher level of automation. AI-powered, data-driven insights are shaping the way we do business in the present and is sure to improve the power of decision-making even more in the near future.

Transparency on the rise

Specific fields like RegTech and Blockchain-based FinTech applications are promoting transparency of information like never before. Customers and commercial entities are enjoying a mutually beneficial relationship in this regard, with examples like fraud reduction, auditable money trails and KYC initiatives delivering an open-book experience in the world of digital finance.


The insurance industry has many strict and complex regulations that encumber their transition into the digital world, but insurance technology has benefitted greatly from FinTech and has been given new breath. Insurance agencies and companies can now make use of AI/ML applications to tailor specific insurance packages to customers and guarantee their maximum relevance. The near future will surely see this area develop and receive the attention it deserves.


Regulatory technology is another rising star in the FinTech sky, aiming to cope and catch up with the ever-evolving digital finance sphere. Regulation agencies help financial institutions meet financial compliance regulations, and this has proven to be challenging since the FinTech landscape is experiencing disruptive products & services as we go along. Nevertheless, RegTech solutions are growing and the industry is adapting to the future slowly but surely.

API Assets

New banking trends have given birth to financial data APIs that offer data in real-time on assets being traded in the markets, and from this notion came the concept of open banking, where client data is securely shared between traditional FIs and FinTechs to enhance the customer experience and benefit the industry.

Payment Options

Facilitating financial transactions and payments is basically the fundamental benefit of FinTech, where customers around the world can now pay and transfer funds in a multitude of ways that would not have existed without financial technology. Today, payment methods have reached a phenomenal range due to FinTech applications and their add-ons, and SMEs/startups are finding it much easier to conduct their business through these modern payment solutions.

Banking leisure

Banking as we know it is dissipating slowly into the convenience and ease of our devices, especially mobiles. From humble beginnings with very limited functionality to full-blown user-friendly apps & websites, digital banking is becoming smoother and being adopted more and more across the world due to the unstoppable rise of FinTech.

Lending opportunities

FinTech applications have paved the way for digital lending initiatives, especially peer-to-peer (P2P) lending. Consumers now have many methods to take loans from FIs or other consumers with the development of loan and lending software, and tools that compare and automate processes are empowering that notion even more. Borrowing money has never been faster and more secure.


The decentralized, transparent nature of Blockchain technology was one of the early enablers of FinTech on some levels, and today the tables have turned as FinTech enables the integration of Blockchain tech in its applications.

On a local, regional and international level, it’s safe to say by now that FinTech ideas will continuously bring disruptive solutions to the traditional finance industry. The adoption of these solutions is another matter, but FIs are increasingly interested in the collaboration potential with FinTech entities, and that alone is enough of a promise for 2020, where the region could witness several partnerships and innovative initiatives between digital finance and the robust financial industry. The future is quickly becoming the present and consumers are hungry for speed, convenience and efficiency in the field of FinTech more than ever before.


RegTech, InsurTech, m-banking, mobile banking, artificial intelligence, AI, machine learning, ML, SMEs, Blockchain, P2P lending, benefits

related articles

12 November 2020

How FinTech is Revamping the Insurance Sector

12 November 2020

Financial Health is What FinTech Should Be Empowering

16 September 2020

Setting Digital Banking Transformation Priorities During a Pandemic

9 August 2020

Can Blockchain Technology Affect Banking and FinTech?

9 July 2020

The State of Biometrics in 2020 and Beyond

9 July 2020

Regulatory Technology is the Unsung Hero of Digital Transformation

9 July 2020

Bridging the Digital Divide with APIs

4 June 2020

The Impact of IoT on FinTech & Banking

5 May 2020

How is Banking Changing with COVID-19?

5 May 2020

Customer Service Transformation has become a must in a Digital World

26 April 2020

The Opportunities and Threats of FinTech during COVID-19

21 April 2020

How FinTech can relate to the Healthcare Industry

6 April 2020

6 Benefits of Blockchain Technology in Finance

10 March 2020

Disrupt Africa: Egypt is Leading African Tech Hub in 2019

10 February 2020

Humanizing Services through Smart Banking Technologies

10 February 2020

MSME Lending & FinTech: What to Expect in 2020

13 January 2020

How Digital Innovation can Transform the Future of Banks

13 January 2020

Banking Experts Forecast Key FinTech Trends in 2020

23 December 2019

6 FinTech Trends That Will Transform Banking In 2020

8 December 2019

FinTech Trends To Keep An Eye On In 2020

8 December 2019

How FinTech Can Contribute To Healthcare

26 November 2019

How many digital Middle Eastern companies have unlocked their full innovative potential?

31 October 2019

Top Five MENA Venture Capital Investments in Q3 2019

22 October 2019

Singapore FinTech Festival 2019: A Meeting of the Minds

17 October 2019

Digital Banking vs Physical Branches: Competition Not Mandatory

14 October 2019

Central Bank of Egypt Holds Third Roundtable Discussion for FinTech in Egypt

8 October 2019

Mastercard partners with R3 to create Blockchain-enabled cross-border payment solutions

29 Sept 2019

BEBA presents the Digital Assets & Artificial Intelligence: Shaping the Future event

9 Sept 2019

Five Technologies Expected to Reshape FinTech in 2020

25 July 2019

Egypt’s First Artificial Intelligence Faculty launched at Kafr El Sheikh University

23 July 2019

VisionBanker startup aims for radical change in eye care using Blockchain

FinTech Newsletter

Sign up to our newsletter to stay up-to-date on the latest fintech news and events.