Efficiency Demand is Fueling the Rapid Growth of Financial Technology

In October 2021, Bitcoin finally hit the $60k mark, a point it had been flirting with for several days. Similarly, other cryptocurrencies also reached historical highs after long bullish rallies in the third quarter of 2021.

As of April 2021, the size of the crypto market stood at over $2.21 trillion. While the value drops and increases following the price of various crypto coins in the markets, it has stood over the $1 trillion mark for a while. The enormous figures are in multiple wallets that exist in digital formats. Owners of crypto assets can access the wallets on the web, mobile devices, and many other electronics that can access the internet.

The ecosystems and the series of networks that house cryptocurrencies are large and impressive. However, the Fintech space is growing fast and goes beyond what digital assets like NFTs and Ethereum trading platforms such as PrimeXBT ‌offer.

What Is The Input Of Governments In The Fintech Space?

Places like the U.S. have seen increased spending on the technological front, with the government setting aside over $1.94 trillion to support different technologies. The fintech space is among those included in the humongous budget that is poised to reach the $2 trillion mark in 2022.

At least 40 percent of Americans have used online banking in the past year. In 2019, up to 160 million people in the country did a financial transaction online. The humongous figures are a testament to the appetite for Fintech in the coming years, when countries in the developed world will take vital steps to reach impressive numbers.

What Are Some Impressive Products In The Fintech Space?

Crypto is highly associated with the blockchain, with NFT creators now using the technology to reach buyers. The network creates a peer-to-peer connection that brings together millions of people who want to trade in places like PrimeXBT and communicate securely online.

The blockchain has seven characteristics that set it apart from the rest. However, the most important ones in the seven are security, flexibility in the way smart contracts execute, and immutability. Blockchain is hard to crack. It has also enabled the exchange of billions of worth of crypto and NFTs over the past decade.

Big banks like HSBC and Wells Fargo finally bowed to pressure and integrated blockchain in their cross-border payment ecosystem from the American continent to Europe. The blockchain will deal with some currency settlements and even help to improve efficiency in currency exchanges between the two continents.

How Fintech Is Enabling Cross-Border Payments

In the past, big banks were the custodians of cross-border transactions. However, that space is quickly changing, with faster options made possible by technology. The once famous PayPal and Western Union are now coming under pressure as new entrants are offering faster money processing times and seamless integration with local banks to complete the exchanges.

In 2022, the cross-border payments will hit colossal records—up to $156 trillion. While big banks and significant currency clearinghouses still dominate, the space is slowly filling to the brim. People will now have plenty of options to send money to their loved ones or enjoy the trading options PrimeXBT offers using a swipe of their fingers on a smartphone screen or a touch of a button on their PC.

Person-to-person transactions remain an important opportunity for software creators in the financial space. However, individuals’ small amounts of money cannot outpace or match those handled by big businesses to other businesses or from businesses to customers.

Future Outlook of the Financial Technology Space

The increasing demand for cross-border payments will push up the efforts of stakeholders in the fintech space. Businesses and people using cross-border transaction services have led to the monstrous growth of the space. The Fintech space has an even greater potential in less developed markets, which have only scratched the potential of mixing financial services with technology. Further, the developed world has a lot to offer when it comes to creating a leadership position in steering the space onto a safer ground for others to pick up and make the financial space even bigger.