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The world is advancing quite rapidly and to be honest, sometimes it feels it is hard to keep up with technology. The moment you buy your new phone, after a couple of months it feels outdated. Not because of the new release, but all of the technological advancements to the new model.
Technology is changing industries, from the digitalization of services to making them more accessible to every person in the world. Just look at banking, a sector that nowadays offers online transactions all over the world, instant withdrawals and deposits, and transaction history all online.
This wasn’t possible a few years ago.
But it seems that the world of finance and fashion has collided through technology. As we mentioned before, industries are changing and adapting to the new modern world of technology. Anyone that won’t embrace new technology will be left behind.
That’s why FinTech has brought a lot of new and revolutionary things to the fashion industry and in today’s article we will explore them all.
The Fashion Industry
As we enter 2024, it is safe to say that the fashion industry has not done well in the past couple of years. Why? Well, first of all, we’ve experienced Covid-19, which brought a lot of struggles for the fashion industry.
The fashion industry needed to embrace the online markets, and the demand for fashionable goods was at an all-time low just because not many people went out, which means that didn’t need clothes.
This led to another problem. Economic crisis. Now the price of goods skyrocketed but the salaries have struggled to keep up. Therefore, buying clothes has become a luxury that most of us cannot afford.
But despite all of these problems, the fashion sector is expected to grow a moderate 2-4% in 2024, and the luxury segment will grow by 3-5%.
It seems like technology must come to the rescue and help the fashion industry by boosting its growth.
Ways FinTech Can Revolutionize the Fashion Industry
FinTech is arriving at the perfect time for innovation and improving efficiency in the fashion industry. Things like digital banks, and sustainable and decentralized finance can future-proof the fashion industry.
Here are some of the ways FinTech can impact the fashion sector:
AI and Machine Learning
AI is everywhere! Recent smartphone releases have integrated AI assistants, personalized AI chatbots revolutionized the customer care industry, and it seems like AI is preparing for the fashion revolution.
Imagine walking into a virtual store with your avatar (which is already possible with Apple Vision Pro), and trying on fashion pieces yourself. Online shopping will never look the same.
All of this is possible with a combination of VR, AI, and machine learning technologies. This technology will help the fashion industry create more personalized shopping experiences, optimize supply chains, and even use AI for predicting shopping trends.
Digital Banks
The days where you have to go to your local bank, lose 2 hours of driving and parking, and pay some parking fees, taxi, or gas money just to sign a paper are gone. The world of digital banks is here to stay.
Online banks like Genome are revolutionizing not just the fashion industry, but every other industry on the planet by offering seamless payment options, accessibility, offer insightful information on customer spending habits, and much more.
If you have a fashion brand, and you don’t have a digital bank that can process international payments and is available 24/7, you are in trouble.
Blockchain Technology
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Blockchain technology truly changed the world forever. Now you might ask yourself how is Blockchain technology useful in the fashion industry.
Among other use cases, blockchain technology is best for one thing – Authenticating goods.
This means that luxury items from the fashion industry, that often hold their value and can be resold after need to be authenticated. We will see big brands start incorporating Blockchain technology into their garments.
From tracking the authenticity of luxury goods to ensuring ethical sourcing, blockchain’s ledger system offers a tamper-proof record of every transaction and movement, bringing a new level of trust to fashion transactions.
Sustainable Finance
As the fashion industry faces increased scrutiny over its environmental impact, sustainable finance just like sustainable clothes is emerging as a vital trend. FinTech is enabling brands to secure funding focused on sustainability projects, ensuring that the fashion of tomorrow is not just beautiful but beneficial to the planet.
Final Words
These are some of the ways that FinTech will impact the fashion industry. But we are not limited only to them. The trouble with FinTech is that we cannot speculate on something that we don’t know is possible at the moment.
In the future, technology might bring new solutions and open up new doorways for the fashion industry to expand. One thing is for sure, FinTech is crucial for all the fashion businesses that want to grow in the future.
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