Money 2.0 Conference - Frequently Asked Questions(FAQs)

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Major Challenges Encountered By FinTech Companies

Technology and innovation have helped industries to reach the heights of success. But, as there are always two sides to a coin, the same goes with these tech-based solutions. In the last few years, there has been a boom in the FinTech industry, making it easier for people, companies, and even banks to prefer online modes of payments, money transfers, and many more monetary transactions. It's such a trending subject that 2022’s premier insurance conferences which were held in the USA had many leaders talking about FinTech innovations and limitations.

Even when FinTech has contributed to the growth of many other sectors through its streamlined financial strategies, it still faces some significant challenges. These challenges make it hard for people to trust these companies or adopt the payment methods they offer.

Let's discuss a few of the biggest challenges affecting the graph of the FinTech companies.

  • Safety And Security Of Data

Traditional banking systems keep their data safe with security guards, CCTVs, vaults, and bulletproof doors. But, it becomes complicated when it comes to virtual security. According to the University Of Maryland, a hacker attack occurs every 39 seconds.

With an increase in cybercrime, it becomes even more necessary for FinTech companies to focus on data security as hackers try to attack them to gain money as well as the personal information of the clients.

  • Insufficient Tech Expertise

Some FinTech companies design mobile applications or websites that non-tech people can't use. Thus, they resist opting for such financial modes of payment.

Companies must realize that to gain more audience, they must make their product or service accessible to everyone. But, easy access doesn't mean a weak backend, which can affect users' privacy and safety.

  • Integration Of Big Data, AI, And Blockchain

Big data, AI, and blockchain are the latest and modern technologies accepted by almost all industries for information collection, detection of frauds, risk analysis, and data exchange. But, the drawback lies in implementing these technologies in the FinTech industry as it requires technicians and experts and constant maintenance.

  • Boosting Brand's Reputation

Often, FinTech companies don't comprehend their niche, target audience, and tools to capture the traditional banking audience. This makes them bear losses in their business. To overcome this challenge, many thought leaders at the insurance conferences held in USA suggested that they need to let others know about their services and products and how they can impact users' lives. They need to develop a solid and effective marketing strategy of advertising, collaboration, etc. This will help companies gain popularity and boost their brand awareness.

  • Balance Between User Experience And Privacy

FinTechs must be extra careful when providing service to their customers, and they need to provide experience and security. Because the customer's money and information are at stake, they can't compromise. They can even track their competitors' methods to see how they cope with this challenge.

Conclusion

One can either study all the latest trends and strategies suggested by the FinTech advisors or attend an insurance conference in Vegas like the Money 2.0 Conference to overcome these challenges. It can provide all the needed information on risk management strategies, blockchain-based transactions, and trends in FinTech, the rapidly-evolving insurance landscape, in one place.

06/20/2022 - 09:30

Yash Dogra

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Author Name
Yash Dogra
Author Bio

Yash Dogra is deeply interested in learning more about the world of finance and is a cryptocurrency enthusiast. He is a member of the organizing committee of the Money 2.0 Conference which will explore insurance and finance trends, acquaint attendees with new financial management tools, and highlight tactics to stay safe from fake/fraud investment schemes as well as spam and stock market scams.