FinTech, as the name suggests, is a combination of finance and technology. Fintech is one such industry that has gained widespread interest in recent years, especially after the global push towards digitization. Today, Fintech is one of the fastest-growing industries and fintech solutions have become modern, secure, and more reliable, to support all the financial requirements in the best possible way.
Given the unprecedented disruption of the economy and operations across the global supply chain in 2020, 2021 is expected to be the year of digital transformation. With a field that is vast and extensive, the development of fintech applications is constantly reaching new heights in driving the financial industry forward.
Today, fintech development companies are into developing applications with crisp UI, engineered to provide the best user experience. Fintech solutions are driving massive changes across the world of payment and banking. From the ATM to digital payment apps, and net banking, the finance sector is shaping for the better with Fintech.
Having said that, let’s have a look into the current trends that are following the industry post the pandemic.
What Drove Trend into the Fintech Industry in 2020-21:
Fintech is one such industry that was able to provide a very high level of customer satisfaction in times of crisis. In Europe, the fintech industry experienced a 72% growth during the Covid-19 pandemic. This has set the trend for apps to be developed in 2021 to be targeted towards efficient services, management criteria, and security.
The year 2020-21 has opened up a new ear for users who have shifted to an online mode of transactions.
Top Fintech Trends For 2021:
● Robotic Process Automation:
Robotic Process Automation (RPA) is a standard technology that is associated with fintech. Many users take advantage of this autonomous domain and artificial intelligence for processes like customer onboarding, security checks, reporting, storing data, and many other similar functionalities that a machine can do.
Besides saving costs of operations, automation aids organizations to utilize their workforce in a more effective manner. Further, with high accuracy and efficiency over every step of operations, RPA has become a key trend in industries across the globe.
● Artificial Intelligence:
All the industries are focussing on reducing the expense of manual labour and replacing them with efficient technologies. And what better way to achieve that than using artificial intelligence. Fintech was one of the early adopters of AI.
The python programming language’s flexibility and freedom have allowed companies to integrate artificial intelligence into their systems seamlessly. They are aiming to reduce the expenses by almost 25% by 2030. Artificial intelligence also helps in ensuring secure online transfer by employing an efficient system to catch cybercrimes.
Regulatory Technology (RT) uses technology for regulation in the financial sectors. RT helps with monitoring, reporting, and consent. It uses advanced functions to simplify various regulatory measures that have helped prevent the drainage of money, internet fraud, and data breaches.
Conversations between the customer and the staff are critical. And it becomes difficult for someone to be responding to customers’ doubts 24X7. In these cases, chatbots come in handy; they are trained with basic questions and responses, they are also capable of requesting data from the customer regarding a particular problem and storing them.
With chatbots taking over different parts of your operations, you can now program these AI-powered bots to collect and disburse information over your database. Interestingly, the millennials also prefer this as they do not want to waste time over calls and prefer texting.
● Open Banking:
This is a significant component under which finance and technology are merged in association with Second Payment Services Directive. It helps appropriately handle data and allows fintech enterprises to share data with secure companies efficiently.
Many companies believe that open banking is the future of banking. The stats highlight that open banking was able to generate revenue of around $7.29 billion in 2018, with prospects to reach $40 billion by 2025.
● Biometric Solutions:
Biometric is one of the most efficient technological innovations that protect us from cybercrimes. This has made tasks like cash withdrawal and other official works become easy and much less time-consuming. Fintech companies and applications should incorporate this feature to help in safe and secure banking experiences.
Biometric provides confidence in the user’s mind as they know their data is safe and cannot be accessed by anyone else other than them. After Covid-19, people have refrained from using cash and paper documents, so contactless biometric systems have increased quite a lot since then.
● Voice Assistant:
Voice assistant is like an intelligent chatbot that relies on speech only; over the last years, a couple of voice assistants has been developed by major smartphone brands, namely Siri, Google Assistant, Alexa, and Bixby. It is a tech that can be easily found in speakers, smartphones, and other devices.
According to various researches, above 70% of the citizens in the USA use voice information. Voice search is handy and can be a valuable addition to the fintech industry.
● Blockchain Technology:
Blockchain helps in the decentralized distribution of information and data. This ensures a very high level of security which is almost a revolution in the financial market strategies. Banks are using blockchain to reduce expense and give mobility to the internal processes. Research involving banking officials states that around 48% of them believe that blockchain will bring vital transformations in this field.
● Alliance for Financial Inclusion:
Using fintech is beneficial for banking companies and their allies as well. Fintech can be risky if it is done without any prior planning. People who are aware of such technical hardships tend to stay away from subscribing to it. With the Alliance for Financial Inclusion (AFI), it has been possible to add more extensive financial sectors. They can now help each other to make even more significant transformations.
Fintech is the Future of Finance!
These are some of the technical features that are predicted to become a trend in fintech application development in 2021. Some other features might also evolve that are not mentioned in the list, but these are the most prominent ones to date. These trends will make banking an enjoyable experience for the customers and provide them with a high level of security.