An analyst from Zabo, Christopher Brown, says that Decentralized finance might have an interesting model which would help in driving innovation in the fintech and banking industry due to the rise in the use of cryptocurrencies.
The Emergence of Fintech
2020 was a great year for the fintech industry, and there is no denying that. The wave was already shifting towards fintech before the Coronavirus pandemic, and the user service was already in the revolutionary process as the convenience of the digital world was becoming more and more important for most of the organizations in order to facilitate their operations and their customers in the best and the most efficient way possible.
Data aggregation is a vital part of the fintech industry, and it has unlocked a lot of new opportunities and created value for the customer, fintech services, regulators, and the overall society. The frictionless and easy access to payment systems, which is already a part of many apps, has been very fruitful for both the organizations and the customers, and it has paved the way for new relevant products and the direction in which they must go in.
Expectations Of Customers
Innovators like Airbnb, Uber, Amazon, and Shopify have embraced the adoption of sharing digital delivery, commerce, data, and economy. They have provided their users with the most cutting-edge fintech technology, which has made their value exchange process extremely smooth just by including fintech in their operations.
The customers now expect a similar level of convenience when they are about to start using a new application. Finance is the industry for which this technology is extremely crucial. With the increasing interest of the customers in cryptocurrency, the need for providing frictionless transactions has become essential.
The next evolution in financial technology will not be possible without the incorporation of DeFi in the system. We can start looking into it by identifying the innovations introduced by the DeFi system just in the past year. The exchange protocols set up by DeFi are generating transactions over $1 billion. This shows that it has become vital for companies to include DeFI in their services in order to enhance their operations.