Quick Summary: As we all know, Financial Technology is confronting an immediate positive change. Progress and development in this industry are implied to assist the financial institutions, and their clients who choose their services to refrain from overspending, navigate risks, and usually deal with their finances better.
In this article, we’re going to go through the top trends to look out for in 2021 and beyond. So, without any further ado, let’s get started!
2. What is Fintech?
3. Top 5 trends to look out for in 2021
- Blockchain technology
- Biometric security systems
- Regulatory technology (Reg-Tech)
- Voice technologies
- Artificial Intelligence
4. The Verdict
As we have entered 2021, we have seen that financial technology is stimulating positive innovation in the banking industry. All the tardiest and most advanced innovations in the finance industry are meant to offer an uninterrupted experience to the customers. Despite this, those improvements won’t change overnight. Alternatively, a band of poor and incremental changes will eventually lead to their transformation, and fintech is assured to be at the very center of the reinvention.
One of the major transformations has moved the inauguration of the most modern updates in different fintech products such as Robo-advising, insuretech, and regtech. Starting from open banking systems to biometric security models, fintech is all set to make a charismatic alteration in the financial sector.
The finance-based applications provide advanced and innovative resolutions to improve financial products and services. Before you start to develop an app, make sure to know everything about Fintech and ensure that it helps to meet the users’ requirements and encourages them to manage their finances. Fintech solutions are broadly available and use successions of machine learning, blockchain, biometrics, eCommerce, and artificial intelligence.
What is Fintech?
Financial Technology means finance and technology integrating with a viewpoint to contributing and creating innovative solutions for businesses and assisting financial service providers in serving their clients better.
FinTech is not a piece of software, not a brand name. Alternatively, it shall be understood as a combined term for the technological trends that allow the banking sector to become smarter and faster. Applied individually, they can make one’s business more efficient, serving more easily, smooth interaction with customers, employees, or suppliers.
Now, let’s discuss the top fintech trends to follow in 2021 and beyond.
Top 5 FinTech Trends to Watch Out in 2021
1. Blockchain Technology
According to a report generated by Business Insider Intelligence, more than 40% of banking deputies believe that Blockchain technology will have a major impact on banking services in 2021 and beyond.
It is predicted to bring about a global change in financial services. It does not just provide new technology but also a new philosophy of decentralized finance that focuses on decreasing centralized procedures. It becomes complex to accentuate and therefore remains preserved. Blockchain technology is not just cutting-edge technology but also a unique viewpoint of decentralized finance that focuses on reducing centralized procedures.
2. Biometric security systems
Due to Covid-19, several aspects of life have changed – especially how we interact with the world, it’s now contactless.
Mobile banking and other financial services have become universally free – they are really at the tip of one’s fingers. This, in itself, being an incredible performance, similarly, suggests lots of security-related questions. Meanwhile, cybercrime intensifies day by day.
Consequently, it is necessary for businesses operating in the FinTech industry to take all the possible security standards. And biometrics is one of the best ways to take security to the next level, presenting users with the certainty that their data is preserved. Currently, the biometrics market is testifying extreme shifts beneath the influence concerning the circumstances. Biometric sensors that involve radioactive intermediaries are forecast to drop in popularity.
It is suggested to avoid using cash, the COVID-19 pandemic grasps fueling the majority of the biometric amount cards market. Public health matters have generated more interest in contactless biometric identification solutions. Contactless financial cards had become usual before the crisis, but even more changes towards contactless smart access systems are to come.
3. Regulatory technology (Reg-Tech)
Regulatory technology allows businesses and entrepreneurs to use software that will analyze all the acquiescence methods connected with central and state laws and ordinances.
A regulatory technology solution will allow you to perform the following operations:
- Transaction monitoring
- Categorize customer calls
- Risk management tasks
- Provide basic financial info
- Regulatory reporting
- Direct customers to the right place on a website
- Identity management
4. Voice-activated Technologies
Voice technology-powered devices such as Google Home and Alexa can do nearly anything for you – from playing your chosen song to exploring any information for you.
Voice assistants can be used as support agents – It provides basic data on the user account or card balance, responding to FAQs, configures recurring payments, directing customers, and categorizing calls to the right places. Moreover, the consumer’s voice can be utilized as biometric financial data to approve payments which are also known as so-called voice payments.
5. Artificial Intelligence
AI is widely used and popular for having the most efficient client service software using some smart systems like chatbots and various businesses.
According to Research, Artificial Intelligence is planned to reduce the operating expenditure of traditional banking by 22% around 2030, which indicates that banks can have $1 trillion savings. But, the way approaching this opportunity can be challenging. Simply like other global employers, banks don’t have a lot of AI-skilled specialists.
The modern and widely used fintech trends in the finance industry that we discussed here are developed to fulfill customers’ demands and requirements. To achieve the growing demand for embedded finance, financial institutions have started providing banking as a service —bundled offerings. Fintech applications implement financial products and services. Despite this, it is still gaining popularity and growing so that the less-privileged society can access safe financial services as well.
The FinTech revolution is becoming stronger. Hence, if you want to stay ahead of the competition, earn your clients’ trust, interact with them, listen to them, create a smooth and transparent customer experience, make digital payments, explore industry trends, respect your client’s privacy, and always make tech investments targeted for aligning the latest tech developments with people’s demands.