The fintech industry has transformed into the goliath of technological developments. Numerous startups have emerged globally because of the immense potential and demand for fintech. There has been an explosion of new technology and innovation because of the excessively growing competition in the industry.

IoT, short for the Internet of Things, is one outcome of the explosion that has gained tremendous importance because of its novelty, sense of originality, and practicality.

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What is IoT?

IoT comprises a network of various devices connected to the internet. The internet link with these devices is the medium of communication, and the devices are varied objects like speakers, fridges, watches, locks, etc., that are internet-enabled. These devices are designed to transmit, store, and process data, for executing instructions and data analysis.

The number of devices currently connected to the internet is more than seven billion. IoT has become one of the hottest sectors within fintech, building a niche market in the consumer electronics department. Consumers these days are heavily reliant on technology, making them more receptive to novel technologies like operating the internet using objects other than their phones, tablets, and laptops.

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IoT in Banking

Digital financial services and products have revolutionized the banking and financial industries. The first and most commonly used IoT platform is the ATM (Automated Teller Machine). ATMs have been in use for many years now. 

IoT devices are the newest augmentation to the concept built around ATMs where consumers can use smart devices, such as their watches, speakers, and car systems, to conduct transactions and other activities.

The fintech industry has found an imminent addition with IoT stepping in.

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How Banking Can Take Advantage of IoT

There is a lot for the banking industry when it comes to fintech. IoT offers several augmentations to the banking industry that could potentially become mainstream methods enhancing the efficiency of the industry, the variety and viability of services and products, and customer experience. Some of the ways by which the banking industry can benefit from IoT are:

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Cashless and Cardless Payments

IoT enables consumers to pay digitally using smart devices without cash or cards. Some methods by which IoT consumers transact and conduct banking include paying for monthly subscriptions, placing online orders through prompt messages received on the devices, etc.

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Wearable Devices

IoT comprises a diverse range of internet-enabled smart devices that come inbuilt with different functionalities, data storing capacities, and technologies. Some IoT devices come in wearable forms, which can be used longer, and for a wider range of functions like tap-and-go payments or e-wallets. Such functionalities supplement banking services in a more convenient and fun way.

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Key Data Insights

The devices used in IoT platforms are designed to store and process data. Banks can use the data collected through these devices for analyzing human behavior, consumer needs, trends, and potential possibilities to enhance customer services. Artificial intelligence has become the go-to technology for most fintechs and fintech-powered banks. 

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Customer Experience 

Banks and financial institutions can substantially enhance their customer experience by studying and analyzing their demands, queries, pain points, etc. They can also offer their customers personalized gamification experiences, which could help build stronger customer relations.

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Automated Customer Verification

Banks can employ IoT devices to conduct verification, eKYC, user privacy, etc., to provide securer services and platforms. Innovative technologies like wearable digital identification, a concept by Nymi, are increasingly becoming a game-changer in the cyber security sector.

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Improvement of Products and Services

By assessing the pain points and demands of their customers, banks have the opportunity to improve their products and services. Planning and strategizing products is an essential part of a successful business plan. Banks can considerably enhance their services and products by taking advantage of key insights into consumer behavior and needs.

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Real-time Communication

Banks can employ IoT platforms to offer real-time 24*7 customer services to their consumers. Chatbots have gained prominence across different industries because of the enhanced customer experience. IoT platforms can also employ facilities like chatbots that provide real-time customer service for banking platforms.

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Voice Instructions

IoT devices are operated through touchscreens, voice commands, etc. Nowadays, IoT devices allow customers to give voice instructions to their smart devices, through which they can also conduct banking and transactions.

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The Challenges

Although the IoT industry is rapidly expanding its customer base, several challenges pose a threat to the industry’s growth and future. Cyber security is one of the main obstacles that hinder its success. Controlling cyber attacks and ensuring secure media and channels is essential with the growing cases of cyber crimes. 

Another challenge the IoT industry faces is the lack of systemization across different IoT devices and platforms. Customers can choose IoT devices as per their needs and budgets. Most of these devices are designed differently, making way for countless ways of data storage, management, etc. Such an unoptimized system creates problems and leaves gaps for data manhandling, cybercriminals, etc.

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Closing Thoughts

The IoT industry has become a rage in our digital age. Interacting with different devices to conduct transactions, make purchases, and carry out numerous other activities is convenient and fun. Consumers, especially younger generations, enjoy diversifying their engagement portals with technology. The growth of the IoT industry has seen incredible heights in the past few years. It is only a matter of time before the world of IoT expands enough to accommodate a much wider range of operations and commands, thus ensuring an impressive growth chart.

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The success story of the fintech industry has reverberated through almost all corners of the world. Fintech has engaged the attention of the mass majority of people, businesses, and industries, resulting in stupendous growth. Of all countries participating in the magnification of fintech, a few countries have attained enough expertise and experience to be rendered, world leaders. The United Kingdom is the second biggest leader in the fintech industry.

The UK has been one of the prime fintech markets since the advent of the conglomeration of finance and technology. Because of its deep-rooted connections with fintech, the UK has had the opportunity to develop the four main segments that control and guide the prospects related to a particular industry or market within a country. These four segments are:

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Availability of Talent

The talent vis-à-vis the fintech industry is available in plenty in the UK. From universities to corporate offices, fintech has percolated to the deeper levels of society that have enabled the development of a highly talented population excelling in the fintech industry.

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Inflowing Investors

Because of the ideal ecosystem prevalent in the UK market, investors have found a lucrative corner where talent and ideas are abundant, ensuring that the UK remains a global leader.

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Government Policies

The policies strategized and implemented by the UK government focus on the growth of the fintech industry and the level of investments that fuel its success. The UK government has propelled its stance in the fintech industry by incentivizing capital investors.

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Adoption and Demand

The people living and residing in the UK have been well-acquainted with technology and related industries like fintech. Since the 2000s, the UK population has been exposed to the advantages and convenience of fintech, empowering them with first-hand knowledge of the various benefits that come with it. Such empowerment has spiked the demand and rate of adoption, making way for more innovation and novelty in fintech.

Apart from these factors, the UK government has also been focused on diminishing boundaries and creating bridges with other potential fintech-associated hubs like Hong Kong, Australia, etc. Because of its historically strong position and past European orientation, the UK has numerous virtual benefactors influencing its positioning as one of the world fintech leaders.

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The Topography

Although small area wise, the UK fintech market comprises one superhub and several smaller hubs, which create an enormous conglomerate of fintech firms. The topography of the UK fintech landscape is well-balanced, with London as the superhub.

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London, the Suber Hub of Fintech

The capital city of London not only has massive historical importance on the world map but is also the second highest contender on the map of fintech after Silicon Valley. London compromises almost 75% of the total number of fintech firms in the UK, with almost 94% of the country’s fintech investments flowing into the city. Fintech giants like Wise, Revolut, Checkout.com, Monzo, Starling Bank, Blockchain.com, and many more are located in this superhub and have contributed immensely to setting the scene for successful fintech. The London supremacy vis-à-vis fintech is unmatchable because of its pivotal positioning as the attraction for capital investors. 

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Smaller Fintech Hubs

Apart from London, the UK is also witnessing the emergence of several smaller hubs located in a distributed manner across the country because of their proximity to London and comparatively lower costs to the capital city. Manchester and Leeds have cumulatively attracted fintech startups to base their businesses. Similarly, Scotland, Birmingham, Cambridge, Newcastle, Reading, Wales, etc., are also rapidly building up their fintech ecosystems to invite and accommodate more fintech development.

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The Challenges 

The UK fintech market is well established and thriving. However, the fintech landscape in the UK has its own set of challenges that hamper its pace of growth. 

One of the prime factors posing a challenge is the growing global competition. With the emergence of the upcoming fintech hubs like Brazil, India, etc., and the existing leaders like the USA, China, and Singapore, the UK market is feeling the pressure of dilution. Another prime factor that is disrupting the flow of fintech progress everywhere is cybersecurity. Cyber crimes and attacks are becoming increasingly prevalent with the adoption of fintech and the growing participation of users.

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The dilution of talent is another key factor that poses a potential threat to the UK fintech market.

Top 10 Fintech Companies in the UK

Checkout.com – Digital payments platform provider 

Revolut – Digital-only bank

Monzo – Digital-only bank

Starling Bank – Digital-only bank

Wise – Money transfers and online payments

Atom – Digital-only bank

Zopa – Personal loan provider

Blockchain.com – Cryptocurrency platform

Clearbank – Banking facilities provider

Tandem – Digital-only bank

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Leading Fintech Streams in the UK

Fintech is like an enormous umbrella that has several subdivisions. Each of these subdivisions holds the potential to become individual niches, like BNPL (Buy Now, Pay Later), e-Wallets, e-Payments, digital insurance and investments, digital asset management (DAM), and many more. The UK market is predominantly a global fintech leader, implying that most of these fintech streams are prevalent in its landscape. However, the five most prominent fintech segments dominating the UK are:

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Lending

The lending sector has been the most successful of all. The market has seen a remarkable rise in lenders and borrowers alike, making way for different levels and types of loan platforms that cater to a wider audience on both ends. Peer-to-peer (P2P) lending applications, like Amigo, have gained tremendous traction among fintech users. Iwoca is one of the prime players in the industry today that offers short-term loans and risk assessment services. OakNorth Bank is also a key lender actively participating in the UK economy.

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WealthTech

Wealth management applications and services are increasing in importance globally. WeathTech comprises asset management, investments, assessment and risk analysis, guidance and advice, etc. WealthTech has gained immense popularity in the UK in recent years, with companies like 

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Challenger Banking

Digital-only banks, also called neo banks or challenger banks, have revolutionized the banking system. Challenger banks advocate the existence of 24*7 services, better control and power in the hands of their customers, and secure digital platforms that allow easy banking. Such challenger banks, like Munzo, Atom, Starling Bank, and more, have revamped the UK banking system.

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RegTech

Regulations and compliances are an integral part of the financial system. The fintech industry must have strict regulations, standards, and regulatory systems that oversee the application and abidance of nationwide and international regulations. The UK market is well-established, implying that its regulatory system is more advanced than its lesser experienced counterparts. The UK has also pioneered the creation of regulatory “sandboxes” that allow new firms and technologies to float in the real market to gauge their success rates, improvement areas, and other KPIs (Key Performance Indexes). The concept of sandboxes is rapidly gaining traction in other countries as well. 

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InsurTech 

The insurance sector has been a pain point for most consumers because of the tedious processes involved in assessing and choosing the best one. InsurTech has disrupted the market by bringing in platforms that remove these pain points and provide convenient alternatives. With the rise in the commodity market, the insurance sector has witnessed an evident spike globally. The UK market to has an advancing InsurTech segment, with companies like 

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The Future of Fintech in the UK

Fintech in the UK has had an incredible trajectory with giants like Munzo, Revolut, Wise, Blockchain.com, etc., in its corner. Fintech has tremendous scope for advancements with technologies like artificial intelligence, big data, cloud computing, etc., making its mark in almost all financial segments. The UK fintech market is one of the biggest markets because of the quality of services, innovative capabilities, and expertise in technology. London is the second biggest fintech hub in the world, implying that the network of fintech firms in the UK has evolved due to its ideal ecosystem offering the perfect combination of talent, capital investments, government support, etc.

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The amalgamation of finance and technology has caused a mighty uprise of technological developments that are steadily replacing traditional ways of money transfer and management. Thousands of fintech firms of all sizes and capabilities have emerged in the last few years, taking the growth trajectory of fintech from high to unparalleled.

One of the main contributors to the world of fintech is the United States of America. 

The fintech landscape in the USA has made it a leader in the industry. Renowned technological hubs such as Silicon Valley, New York, Atlanta, etc., have been instrumental in making North America one of the most prominent hubs of fintech. 

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East Coast to West Coast

The USA boasts the highest number of fintech unicorns, which stands at 81 to date. The fintech hub in the USA is spread across the horizontal length of the country. 

Silicon Valley, known as the largest technological hub in the world, is home to many behemoths of technology, like Apple, Google, Microsoft, etc. The ecosystem of the country and its historical connection with technology have been its biggest benefactors in rendering it the largest fintech hub in the world.

Along the West Coast, San Francisco and Los Angeles are the key contributors to the fintech industry. San Francisco tops the list of fintech hubs because of its invaluable resources, talent, competitors, and financial prowess. Big fintechs like Stripe, Chime, Plaid, Affirm, etc., have their base setup here.

The East Coast is rapidly becoming as important and massive as the West Coast. Cities like New York, Boston, Chicago, Miami, etc., have made the East Coast the third largest fintech hub in the world, after Silicon Valley and London. The reasons behind the East Coast becoming a prominent hub are similar to the West Coast, vis-a-vis, the availability of talent, financial power, inflowing investors, etc.

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The Impact of The Pandemic

The catastrophic impact of the pandemic has been witnessed the world over. With strict nationwide lockdowns, limited supply of essentials, and imminent danger to life, the pandemic compelled the world to come to an unpredictable halt. The global economy’s sluggishness was caused by the intense damage and fear of uncertainties caused by the disease.

Most industries got heavily impacted because of inefficient supply chains and restricted movement of goods and money. Fintech was one of the few industries that not only shone in full bloom but also helped channel movements of goods, services, and money to get the system moving again.

The American fintech landscape, which was already leading the industry, became more powerful and reinforced by the growing demand for fintech-oriented solutions. 2021 saw an exponential rise in the venture capital funding of fintechs in the USA. The total sum of VC investments crossed $105 billion in 2021.

According to a report published by McKinsey, the percentage of fintech users and participants has grown to more than 40 post-pandemic, making fintech one of the mainstream industries. The adoption rate and awareness of fintech services and products have risen tremendously because of the high demand for alternatives to traditional banking and money management.

All fintech sub streams, such as payments, banking, investments, etc., have grown in popularity and adoption rates across the country. With more people exploring and accessing fintech-powered services and products, the adoption rates are strikingly higher than ever before. 

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Largest Fintechs in the USA

Thousands of fintechs have emerged and are continuously emerging in the fintech of the USA. With unceasing investments and unmatched expertise, the country has led some of the biggest innovations in the fintech industry. Some of the largest fintech companies that have their base set up in the USA are:

Stripe

With a valuation of more than $95 billion, Stripe has become the biggest fintech in the USA after Visa and MasterCard. 

Klarna 

Klarna is a market disruptor that has pioneered the BNPL (Buy Now, Pay Later) strategy and technology, currently valued at $46 billion.

FTX 

Valued at $32 billion, FTX is one of the largest companies that cater cryptocurrency exchange services.

Chime

A digital bank with a valuation of $25 billion, Chime has been a game changer in the fintech industry.

Ripple

Another cryptocurrency and blockchain technology company that supplements digital remittances and payments via cryptocurrencies. The company currently values at $15 billion.

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The Takeaway

Fintech in the USA is the epitome of success and innovation. Both the Coasts have become world leaders powering tech giants that have immensely influenced the ambit and evolution of fintech. The North American fintech hubs house big names like Plaid, Affirm, GoodLeap, etc. Apart from these giants, countless small and medium-sized startups are readily giving competition to well-established businesses worldwide. Owing to the massive availability of talent, technological expertise, resources, and competition, these fintech hubs have assumed the roles of unstoppable launching pads that support and fire upcoming companies. Because of its massive contribution to technology, finance, and several other industries, there is no question why the USA has earned the role of becoming a benchmark of technological prowess.

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Fintech has become increasingly popular globally. The pandemic has propelled the expansion of this massive industry in the past few years. Among the many services and streams under the fintech umbrella, embedded finance remains one of our favorites owing to its applicability and practical usage.

What is Embedded Finance?

Embedded finance, or EmFi, involves the integration of financial services and non-financial platforms through APIs (Application Programming Interfaces), implying that non-financial firms and service platforms can offer financial services by including embedded finance into their system. Embedded finance has grown exponentially since the pandemic because of the increasing demand for digital financial services and the easy supply continually injected into the fintech industry. 

With embedded finance, any non-financial application, firm, or platform can become a fintech. Companies like Uber, which started as a taxi-hailing service app, have come a long way to become super apps that involve financial services. Such is the power of embedded finance. 

The four major areas under this subsection of fintech are e-payments, instant credits and digital loans, embedded insurance, and investment options.

In the Asia Pacific alone, the embedded finance industry is estimated to grow at an average pace of about 25% by 2029. Such massive growth estimates convey a humungous potential in the industry.

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EmFi Impact on Banking Services

EmFi enables non-financial platforms to become fintechs and offer financial services. Such advancements in the financial industry have had a big impact on banks and financial services. Some of the key impacted areas in banking services are:

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Thrust in Digitalized Services

With the sudden rise in technology’s adoption, there has been an immense demand for digitized financial services. Banks and financial institutions that initially found themselves immersed in heavy competition from fintech are now treading towards a more collaborative structure, where the financial entities are assuming the roles of providers and enablers in integrating financial and non-financial channels.

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Less Paperwork

With EmFi, there has been a substantial reduction in the involvement of paperwork and plastic. Users are now demanding more cashless and cardless platforms that enable a seamless user experience without going through external channels like cash and cards.

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BNPL

Buy Now, Pay Later has been a market disruptor because of its sudden popularity. BNPL offers instant credit to purchasers where a third party makes payment to the merchant on behalf of the customer and allows the customer a moratorium period before repaying their small loan. The BNPL industry has given the credit card industry serious competition, compelling it to remodel and restrategize its plans. 

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Better Reach

EmFi is more accessible, making it easier for more participants to join the wagon. As more customers engage with EmFi, more transactions occur, clearing the way for a greater variety of services like e-loans and embedded insurances, more intensive APIs, and more possibilities.

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Banking for Businesses

With EmFi, there is an opportunity for business-oriented financial services to get a makeover. Small and medium enterprises (SMEs) can benefit considerably from digital services, like easy loans, better cash flow systems, etc., offered through digital channels.

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What is Financial Inclusion?

A mass minority in the world remains unbanked or underbanked even today. There are several reasons for the large percentage of the unbanked and underbanked sector, like low credit scores, bad past experiences with banks, poverty, low level of trust in banks, lack of accessibility, etc. Financial inclusion begins when opportunities are extended to such individuals to establish relationships with banks and financial institutions. 

The unbanked sector percentage in the Middle East and Africa is almost 50% of the population; in the Asia Pacific, the sector stands at about 24% of the entire population. Such figures indicate a grievous issue in the system where uncountable individuals remain financially excluded.

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EmFi Impact on Financial Inclusion

Embedded finance has massively altered the layout of the financial system globally. As more non-financial participants join the revolutions, innumerable opportunities come to the surface which otherwise would stay dormant.

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More Participation

With EmFi, there is more participation vis-à-vis providers and users. Embedded finance chooses a different trajectory that majorly bypasses the nuances involved in traditional banking. Less paperwork and better control are big incentives for the unbanked and underbanked sectors to explore EmFi and join the system. 

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Convenience Banking

EmFi also advocates convenience as digitalization enables seamless services without the restriction of time and place. Such comfort and convenience also act as big motivational factors for individuals who lack the resources to go through traditional banking channels.

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Better Accessibility

The spread of the internet is unimaginable, paving the way for better reach and accessibility. For individuals residing in areas with low involvement of banks and financial institutions, EmFi comes as a savior.  

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Varied Services

Ever since the dawn of the internet, the demand for different services and products has become unstoppable. With the growing demand for EmFi, the industry has been compelled to provide a wide variety of services to meet people’s demands. Non-financial firms and platforms are aspiring to offer multilayered banking services. Such diverse services have also spurred the unbanked and underbanked sectors to join the financial reign.

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Banking for SMEs

Apart from individuals, EmFi is also inching towards creating opportunities for SMEs where businesses can take advantage of better cash flow solutions, easy digital loans and repayment structures, and other banking services.

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Closing Thoughts

Embedded Finance is a futuristic concept involving advanced technological developments. Other than creating opportunities for businesses to explore additional revenue streams, EmFi also brings immense convenience and inclusivity to the unbanked and underbanked sectors. The EmFi industry is rapidly gaining momentum because of its reach and practicality. Numerous reports show a steep growth trajectory of the industry, implying a lucrative and prosperous future.

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The digital world is growing at a rip-roaring pace. The last few years have witnessed the robust evolution of the digital space, gradually taking most industries under its hood. Most of us who are well-acquainted with the goodness of the internet, smartphones, and the like, realize its immense reach, connectivity, and scope. Other than providing us enormous convenience, the digital world has proven beneficial vis-à-vis building connections, lowering boundaries, technological advancements, innovation, etc. 

However, as all good things come with some cons, the internet space too is dotted with negatives, one of them being cybercrimes. Cyber security is critical in the digital world for protecting one’s identity, information, finances, and even life.

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What is Cyber Security?

Cyber security involves shielding and protecting digital platforms and devices like information, data, identities, software, etc. Cyber security is achieved through various methods like anti-malware installation, well-thought strong passwords, not sharing passwords, using trusted and secure gateways and platforms, and more such options. Cyber security has become essential in the world of digitization for companies and individuals alike. 

With the increasing participation of internet users and the rising number of digital services, tremendous amounts of data are shared and transferred between different parties every minute. Cyber crimes become prevalent when there is lax cyber security. The threat of cyber crimes has increased substantially over the past few years, and as more users participate in sharing their data, the number and scope of cyber crimes are only bound to increase. 

According to the latest reports, the value of the damage caused by cyber attackers has reached $6 trillion. Cyber-attacks have increased so much that they occur every 39 seconds on average. The investment in cyber security remains low across most channels. On average small companies invest less than $500 in securing their cyberspace. 

Various ways are employed to attack individuals and companies, like phishing, virus attack, data corruption, spyware installation, hacking of passwords, ransomware attacks, social engineering, etc. Such activities have often resulted in enormous personal and financial damage, and the prime reason for the success of such activities is human error. 

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Different Levels of Cyber Security

Internet and digital tools are very diverse nowadays, implying that cybercriminals have different avenues to carry out their activities and channel their intent. Cyber security can be categorized into four segments:

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Infrastructure

Digital infrastructure is one of the most important pieces of equipment, serviced and employed by companies to create their digital business. Online businesses and businesses structured around online suites heavily rely on digital infrastructures, where lax cyber security can result in colossal damage.

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Application

Fintech platforms engage the personal and financial information of companies, merchants, and individuals. Security of such gateways and applications is pivotal in ensuring cyber security at all levels. Cyber security is incomplete if it remains one-sided. The onus also lies on application users and customers to protect their data, not share passwords, and always check for secure and reliable channels. 

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Network

Apart from the above, one of the most primitive and wide channels established for data transfer is the internet and the intranet. Securing both networks is equally important to keep the digital world safe and away from malware.

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Cloud

Cloud computing and technologies have had tremendous ground. Hacking in clouds gives cybercriminals mighty leverage over data and the vulnerable party. Protecting clouds by involving only reliable third parties is essential for cyber security. 

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Increased Risk of Breached Security

Cyber security is only as good as the weakest member in the circle. With a low level of cyber security awareness and knowledge, there is an increased risk of compromises. Some of the most common ways in which employees and individuals increase the risk of cyber security are:

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Replying to Phishing Communication

Hackers and cyber criminals send phishing communication like incentivized text messages, vague emails, etc., to lure people into replying to them. As soon as an individual replies or reacts to such phishing communication, they are scammed, resulting in a personal or financial data breach.

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Password

Sharing passwords, one-time-passwords (OTPs), or keeping weak passwords are common mistakes committed by the majority of internet users. Any lax security in passwords can provide a window for hackers and cybercriminals to take advantage of.

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Personal Information

Other than passwords, people also tend to share their personal and financial information through various channels in the digital space. If the channel’s security is lax, the user’s information is at risk of being stolen or misused.

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Data Recovery

An improper system for data recovery is one of the biggest factors contributing to data and financial damage to companies and individuals. 

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Physical Security

Other than protecting digital tools like software, applications, etc., it is also crucial to keep physical equipment like hard drives, hard discs, and more under proper physical security. 

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Best Practices

Some of the best ways of ensuring cyber security and protecting one’s personal safety on digital channels are:

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Training and Increasing Awareness

Companies should invest in training their employees to learn more about cyber security, data breaches, different types of security issues, and how to reduce the risk of cyber attacks. Individuals using the internet and other digital tools should also invest in learning about cyber security and data privacy to safeguard their identities, finances, and other essentials from fraud. 

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Data Recovery

Anyone using the internet or is potentially vulnerable to cyber crimes should set up appropriate data recovery channels. Data recovery has proven crucial in many instances and is one of the best ways to protect what is yours.

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Build Stronger Firewalls

Utilizing secure channels and strong firewalls is extremely important for the digital age. All companies engaging in digital services should invest in building stronger firewalls and only employ reliable third parties.  

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The Bottom Line

Cyber security is an integral part of the digital world which is only gaining more importance with the expanding internet and digital space. As more technological developments occur globally, cybercriminals also gain access to these advancements paving the way for more cyber crimes. Investing in proper cyber security and increasing awareness about it are some of the best ways of protecting oneself from cyber attacks. Companies should strategically plan a multilayered cyber security system that provides them an all-around shield. 

As they say, it is better to be safe than sorry.

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Fintech is burgeoning at an unimaginable pace making it one of the hottest industries. The UK, USA, China, and Singapore are world leaders in the fintech industry owing to their resourcefulness and the consummate fintech environment they capacitate.

Of all world leaders, Singapore remains one of the most enthralling fintech leaders because of its size, freshness, and limitless potential. The country boasts more than 1400 fintech organizations, making it the highest among all Southeast Asian countries.

Several factors have contributed to the immense growth of Singapore’s fintech landscape, such as:

Talent Pool

Singapore is one of the fintech hubs because of its endless talent pool that perpetually increases the benchmark for standards and success. The country’s population is home to numberless individuals who are limitlessly talented. When such people get the right environment and opportunities, it leaves little room for failure. 

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Flowing Investments

Singapore’s fintech space has taken such an enormous shape because of the incoming investments from across the world. The country focused on inviting investors and strategically ensuring returns by playing the ideal host.

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Educated Population

The Singaporean population is well-educated, implying that its reception to technology is far greater than average. Because of the highly-educated population, it is easier for the country to introduce novel technologies and intuitive systems, which would otherwise create obstacles in a population that lacks knowledge and education.

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Flair for Technology

The country has had a strong connection with technology, making it one of the most receptible countries to technological advancements. Having been in the technological battleground for many years, Singapore has become one of the world leaders in technology.

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Government Support

Apart from the talented population and technological backing, the country’s government has played a major role in the success of fintech. The Singaporean government has ensured that the country’s resources are utilized systematically by building a nation that excels in technology. 

Singapore has made its position as a leader in technology because of several factors that render it an ideal environment. Being one of the biggest fintech hubs the country houses numerous fintech organizations that are leaders and innovators. 

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9 Fintech Leaders in Singapore

Because of a highly talented and technologically equipped environment in Singapore, its shores are brimming with successful fintech organizations paving the way for futuristic growth. The nine biggest fintech firms in Singapore are:

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Advance Intelligence Group 

The leading fintech in Singapore, Advance Intelligence Group, is primarily a financial management conglomerate that parents several fintechs, each branching into a different stream of financial digitization. Atome is a leading BNPL (Buy Now, Pay Later) firm that is a part of the Advance group. ADVANCE.AI is another big player in the Southeast Asian fintech market that provides data management, fraud prevention, and other services using artificial intelligence and big data, which form its core business.

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Aspire

Aspire is a multilayered fintech firm that provides fintech services to other enterprises like payment portals, cards, financial management, etc. Aspire targets startups to equip them with technological backing and financial tools to help them take bigger leaps in their business journeys. 

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MatchMove Pay Pte. Ltd.

One of the biggest fintech players, MatchMove Pay, is an amalgamation of banking-as-a-service and fintech-as-a-service. Matchmove provides Spend, Send, and Lend services, in which it also issues virtual and physical prepaid cards for making P2P (peer-to-peer), P2M (person-to-merchant) payments and transfers, and a lot more. 

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M-DAQ

M-Daq has successfully disrupted the trading systems by providing a platform for trading and stock exchange, where any exchange-traded product can be priced and traded across national borders.

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Nium

Nium is a global platform that enables easy money movement to aid companies and banks with improved cash flows. Nium is primarily a fintech provider that supplements businesses to move their cash flows from any corner of the world, enabling them to create their digital presence anywhere. 

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Silent Eight

A key player in the fintech compliance sector, Silent Eight, provides comprehensive and customized compliance frameworks for financial institutions. Compliance plays an essential role in the fintech industry, and Silent Eight is one of the key players providing customized compliance models to financial institutions.

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Singlife

Singlife or Singapore Life is a digital life insurance provider which provides all services related to insurance policies, like purchases, reports, etc. It is one of the most reliable and biggest insurance providers in Singapore.

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Thunes

Thunes is a cross-border payment services provider that powers businesses to send and receive payments. The services provided by Thune target gig-economy firms such as Uber. Thunes provides a cross-border B2B payment platform.

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2C2P

A global payment services provider, 2C2P, powers businesses to receive payments from different channels. It offers an extensive payment network for businesses to receive their payments securely.

Several other companies are rapidly gaining momentum in the fintech space, like Validus Capital, FOMO, Hodlnaut, Fastacash Pte Ltd, Smart Karma, KingSwap, Credolab, Hatcher+, Bambu, PolicyPal, YouTrip, and countless others.

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The Bottom Line

The Singaporean fintech landscape is brimming with endless talent, financial aid, and opportunities. Singapore is a world leader in the fintech space that has immensely contributed to the dynamic topography of fintech. Technological advancements and adaptations are relentlessly taking place globally, suggesting a bright futuristic growth trajectory.

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