Fintech, short for financial technology, refers to the use of technology to improve and automate financial services. In recent years, fintech has gained widespread popularity as a means to make financial transactions more convenient, accessible, and efficient. From mobile banking and digital payment systems to robo-advisors and crowdfunding platforms, fintech has revolutionized how we handle our finances.

However, with the rapid growth of fintech comes a set of expectations and hype surrounding its capabilities and potential. In this blog post, we will delve into the expectations versus the reality of fintech and explore this rapidly evolving industry's potential benefits and drawbacks.

Expectations of Fintech

One of the main expectations of fintech is its ability to provide convenience and speed in financial transactions. With the rise of mobile banking and digital payment systems, individuals can now easily check their account balances, transfer money, and pay bills from their smartphones at any time of day. This convenience has greatly enhanced the accessibility of financial services, particularly for those who may not be able to visit a physical bank branch.

Another expectation of fintech is to increase access to financial services for underserved or unbanked populations. Through the use of mobile banking and online lending platforms, fintech has the potential to reach individuals who may not have access to traditional financial institutions due to geographic, financial, or other barriers.

Fintech is also expected to improve financial literacy and management for individuals. With the use of robo-advisors and personal finance management tools, individuals can easily track their spending, create budgets, and make informed financial decisions. Fintech has also made it possible to change how employees get paid, with the ability to withdraw earnings earlier than usual payday, allowing for greater financial control over one’s money.

Finally, fintech is expected to offer a level of personalization in financial products and services. Through the use of algorithms and data analysis, fintech companies can offer customized financial solutions and recommendations based on an individual's specific financial needs and goals.

Reality of Fintech

While fintech has the potential to bring about numerous benefits, the reality of the industry is not always in line with these expectations. One issue with fintech is that it is often not accessible or inclusive for certain groups. For example, individuals who do not have access to a smartphone or reliable internet connection may not be able to take advantage of digital financial services. Additionally, some fintech companies and platforms may have eligibility requirements or higher fees for certain individuals, such as those with low credit scores or those living in underserved areas.

Another reality of fintech is the potential for cybersecurity and data privacy concerns. As financial transactions and personal information are often handled digitally through fintech platforms, there is a risk of data breaches and identity theft. While fintech companies may have measures in place to protect against these issues, they are not immune to them. (Thimot, 2022)

There is also the reality that fintech, particularly in the lending and investment sectors, has limited regulatory oversight and consumer protection compared to traditional financial institutions. This can lead to potential risks for consumers, such as the possibility of investing in fraudulent or risky ventures.

Finally, the fintech industry has seen a trend towards consolidation and dominance by a few large companies. This can lead to a lack of competition and potentially higher prices for consumers.

Overall, while fintech has the potential to bring about numerous benefits, it is important also to consider the potential drawbacks and limitations of the industry.

Blockchain is a decentralized, digital ledger that is used to record transactions across a network of computers. It consists of a chain of blocks, each of which contains a record of multiple transactions. The transactions are validated by a network of computers, rather than a central authority, and once they are recorded in a block, they cannot be altered. This makes blockchain technology highly secure and transparent, and it has numerous potential applications in the financial industry, including enabling secure and transparent financial transactions, reducing the need for intermediaries, and streamlining supply chain management. (Budhi, 2022)

Artificial intelligence (AI) is a branch of computer science that focuses on the development of intelligent machines that can perform tasks that typically require human intelligence, such as recognizing patterns, learning from data, and making decisions. AI technologies can be used in various financial applications, including fraud detection, risk assessment, and customer service. (Anand, 2021)

Machine learning is a subset of AI that involves the use of algorithms to enable systems to learn from data, without being explicitly programmed. It involves the use of statistical models and techniques to enable computers to "learn" from data, identify patterns, and make predictions or decisions. Machine learning can be used in financial applications such as credit risk assessment, fraud detection, and portfolio management. (CFI, 2023)

Robo-advisors are digital platforms that use AI and machine learning to provide automated, algorithm-driven financial planning and investment advice. They can analyze a user's financial situation and goals, and provide personalized recommendations for investments and other financial decisions. (Ganatra & Jain, 2021)

Mobile payments refer to the use of smartphones and other mobile devices to make financial transactions, such as paying for goods and services or transferring money. Mobile payment technologies can be used in various ways, including through apps that enable users to make payments using their smartphones, or through the use of NFC (near field communication) technology, which allows users to make payments by waving their phone near a payment terminal.

Cryptocurrencies are digital or virtual currencies that use cryptography for secure financial transactions. They operate on a decentralized network, meaning that they are not controlled by a central authority such as a bank or government. Cryptocurrencies are created through a process called "mining," which involves using powerful computers to solve complex mathematical problems. The most well-known cryptocurrency is Bitcoin, but there are many others, including Ethereum and Litecoin.

On-Demand Pay is another increasingly popular fintech solution that is gaining widespread attention from employees. The technology allows employees to access a portion of their earnings ahead of the payday. On-Demand Pay can be beneficial for workers who are struggling to make ends meet or who need access to funds for unexpected expenses. It can also be beneficial for employers, as it can help to reduce turnover and improve employee retention.

FinTech in US

The fintech market in the United States is a significant and rapidly growing industry. In 2022, the fintech market in the United States reached a size of USD 4 trillion, and this figure is expected to continue increasing in the coming years. The US is home to a large number of fintech companies and is a global leader in the development of financial technology. (MI, 2022)

The fintech industry in the US is diverse, with companies operating in a range of sectors including payments, lending, wealth management, and insurance. Some of the key trends driving the growth of the fintech industry in the US include the increasing use of mobile devices for financial transactions, the proliferation of digital currencies, and the growth of online lending platforms.

According to a report by the consulting firm Accenture, investment in fintech in the US reached $27.4 billion in 2018, an increase of 18% from the previous year.

The report also found that the number of fintech companies in the US has grown significantly in recent years, with the number of fintech firms increasing by 22% in 2018. (Accenture, 2018)

The US has a well-developed financial sector and a large pool of venture capital, which has helped to fuel the growth of the fintech industry in the country. In addition, the US has a supportive regulatory environment for fintech, with regulatory bodies such as the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency issuing guidelines and providing support for the industry.

The Future of fintech

The future of fintech is a topic of much speculation and discussion. Some experts believe that fintech will continue to disrupt the traditional financial industry and drive innovation, while others are more skeptical. One potential area of growth for fintech is in the field of artificial intelligence and machine learning, which could be used to improve the accuracy and speed of financial transactions and decision-making.

Another potential area of growth for fintech is in the development of new financial products and services that are more accessible and convenient for consumers. For example, the use of mobile devices and online platforms could make it easier for consumers to manage their finances and make investment decisions on the go.

Despite the potential for growth, the future of fintech has its challenges. Regulatory hurdles and security concerns will continue to be major issues for the industry, and traditional financial institutions may need to adapt in order to remain competitive. However, the potential benefits of fintech make it an exciting field to watch in the coming years.

Final Thoughts

In conclusion, fintech can bring numerous benefits in terms of convenience, accessibility, financial literacy, and personalization of financial products and services. However, the reality of the industry is only sometimes in line with these expectations, and there are potential drawbacks and limitations to consider. These may include issues around accessibility and exclusivity for certain groups, cybersecurity and data privacy concerns, limited regulatory oversight and consumer protection, and consolidation and dominance by a few large companies.

As fintech continues to grow and evolve, it will be important to consider both the potential benefits and drawbacks of this industry. The future of fintech may involve increased regulation and consumer protection, further integration with traditional financial institutions, and continued innovation and evolution. It is important to stay informed and aware of the potential risks and benefits of fintech in order to make informed financial decisions.


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MI. (2022). United States Fintech Market- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027). Mordor Intelligence. Retrieved January 9, 2023, from

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