The wave of FinTech evolution worldwide changed drastically over time to become a blistering opportunity on Wall Street and in the Silicon Valley. The evolving potential of FinTech from 1.0 to 3.0 forced the traditional banking systems and financial service companies to follow a revolutionary path which leads to the new era of the digital world. The dramatic transformation of the World Wide Web triggered Web 3.0, powered by technologies like artificial intelligence and machine learning, reshaping the financial services business and operating model at large filled with decentralization.
The maturing Web 3.0 ecosystem led by decentralized autonomous organizations activated the demand for structured financial products aided by superfast 5G data speed, data formats, and software worldwide. In this article, we will take a deep dive to understand the mutual relationship between Web 3.0 and FinTech industry in this modern global economy.
The first two waves fueled the momentum to FinTech 3.0 and increased the application of artificial intelligence (AI) and machine learning (ML) to flourish the intelligent and autonomous processes. Multiple secular forces worked together to develop and advance the new surge of innovation and the evolution of the Web played a critical role in this. Web 1.0, the first stage of the World Wide Web evolution, allowed users to share information globally in the static format by democratizing access to information. Web 2.0 transformed the digital era in the aftermath of the dotcom bubble and emphasized social networking, the content generated by users, and cloud computing; giving rise to social networks like LinkedIn, Facebook, Twitter, Instagram, and many more. Finally, Web 3.0, also known as decentralized web, is a vision of the future of the internet where computers and technologies will deliver useful and relevant insights with an intelligent interpretation of data and transactions. The new cashless and virtual economy in FinTech 3.0 demands Web 3.0 transformation to build the foundation of the way businesses are delivering products and services for next-generation unicorns.
The third generation of internet services will empower a more connected and intelligent world for the financial services industry by disrupting the way Individuals, businesses, and regulatory organizations are collaborating and planning to work together. Here are the top benefits of the convergence between our new decentralized operating model and Web 3.0:
Web 3.0 will provide users simpler and more user-friendly onboarding process. By utilizing decentralized networks, Web 3.0 will ensure end-users always have complete ownership and control over their online data. Every single evolution of the Web from here will ensure even more trustworthiness for the businesses by eliminating security issues of storing any data.
One of the most significant benefits of Web 3.0 is that the user will have access to information as much as possible from anywhere in the world. It will empower businesses involved in activities like loan origination & servicing, BNPL (buy now pay later) to access data about available funds in an account, or data that validates someone’s identity at ease.
Web 3.0 will enable FinTech organizations to understand the evolving needs and expectations of their customers in a better way. With Web 3.0's list of contributing technologies, businesses can automate processes to perform customer journey mapping and allocate resources more efficiently in order to meet consumer demands, facilitate better engagement, and encourage enduring loyalty.
Artificial intelligence, IoT(Internet of things), and blockchain technology, being the three crucial foundations of Web 3.0 will ensure real-time, secured, and transparent transactions for FinTech companies across the world. With Web 3.0 businesses will be able to boost their efficiency powered by automation and secured peer-to-peer transactions for digital payments, loan origination & servicing, BNPL, digital lending, etc.
Web 3.0 will reduce the account suspensions and denial of distributed services dramatically as the data will be stored on distributed nodes due to decentralization. This will also help FinTech organizations reduce their cost of managing seizures or server failures.
The pace at which the FinTech industry is maturing today has created an immense demand for digital lending technology partners across businesses worldwide. To scale at speed, next-generation businesses are looking for a trusted partner who understands the current state of the FinTech market driven by Web 3.0 to unleash innovation. Partnerships like these facilitate an adequate opportunity to differentiate your business in this highly completive world!
To learn more about our services and offerings and make your FinTech business drive an astonishing future with the true potential of Web 3.0 click here, and we will be happy to get on a call with you.