In the ever-changing landscape of finance, a remarkable phenomenon has taken hold: the rapid growth of decentralized finance, or DeFi. This ...
The fintech industry has emerged as a revolution over the past years. Did you know that there are approximately 12000+ start-ups around the world and the number is increasing as we speak?
Financial technology or fintech is accelerating towards more advanced business disruptions and is also influencing all other convection it is in touch with. With the help of most contemporary internet tools and concepts such as Blockchain, Artificial Intelligence, Big Data, Cloud computing, Machine learning, and more, fintech is changing the way the operations were being carried out so far.
Source: Financial Services marketing trends for 2021 [Report and expert advice] (smartinsights.com)
For your knowledge, according to Goldman Sachs, the net worth of the fintech industry now is $4.7tn. And experts anticipate that this would only continue further. All the latest advancements in this industry are meant to provide a seamless experience to the consumers.
The main aim is to improve financial services so that the clients can manage their finances well and mitigate risks involved in this industry. Debut Infotech, one of the leading fintech app development organizations, has had the opportunity to harness the technology and develop a variety of fintech mobile applications to aid consumers and businesses.
Top Fintech trends
It is quite right to say that due to the security offered by these apps, Fintech is setting up a new digital space in the store from hereon. The latest trends in the fintech industry that we think are here to rock the industry are as mentioned below:
1. Reaching above and beyond
The technologies of today such as Blockchain, or on-demand mobile apps, we are technically speaking about making the advantages reach the upper & working class of the society.
Very little talk is done on the benefits of such technologies to the people who are in dire need of the associated benefits of these technologies. According to a report from World Bank, approximately 1.7 billion people don’t have access to a substantial financial system. But talking about fintech companies, most of them are trying their best to reach out to these people.
2. Digital Banking- the new normal
After the pandemic, we are all confined to our homes, and visiting banks and other financial institutions have reduced. Owing to the growth in biometrics, artificial intelligence, and cybersecurity, digital banking is easier and safer than before.
Source: Chart: Banking Customers Are Going Digital | Statista
Consumers can execute even the most important tasks through digital banking services. This growing trend has also reduced paper-based banking systems.
3. Making transactions safer with Blockchain technology
Blockchain technology is regarded as one of the most cutting-edge technologies of this era. According to some trusted sources, more than 48 percent of the bank representatives are of the view that blockchain-based fintech systems are making transactions safer.
Source: How to Use Blockchain in Banking: 10 Use Cases - Merehead
Blockchain technology works on decentralized networks, removing any government or third parties involved. This makes the data stored on the ledger safer, immutable, and protected from any mishandling.
4. The era of Artificial intelligence & Machine learning
As per some sources, AI would reduce the operational expenditures in the financial sector by up to 22 percent, which means that a bank can save up to $1 trillion by integrating AI-based algorithms in its banking systems.
Besides helping to reduce the expenditure, AI/ML-based banking systems can also help to mitigate financial frauds and reduce cybercrimes. Organizations such as Google, IBM Watson, and several others have already made AI inclusions such as the integration of interactive chatbots, virtual agents, and various other automated tools.
5. Enabling data networking with open banking
Open banking works on similar principles 0f second payment services directive (PSD2). The models based on PSD2 oblige every bank to release the data securely and enable authorized information sharing on multiple platforms.
The popularity of open banking systems is increasing making all the industry leaders utilize the system. The fintech systems based on open banking would account for $43.15 billion by the end of 2026.
6. Fintech-as-a-service
In the era of SaaS, financial applications have also begun to be shared as a service and a digital product. Investing in fintech-as-a-service can reduce the infrastructure and financial management capital investment burden on your organization.
With financial-as-a-service, you can also bridge the gap between the best technology available and what is commercially viable for your organization and consumer.
7. Optimized cybersecurity
This is going to be a priority for more than half of fintech organizations to mitigate the threats. Each day many new threats are waiting to exploit the vulnerabilities of the organizations, their devices, and users. Fintech is one such industry that deals with a load of sensitive information such as credit balance, money, and data which makes it more vulnerable to threats.
Incorporating new and updated technologies such as IoT would help increase communication and minimize the entry of physical forces that pose a risk to the data.
8. Voice search integration
One of the most hyped trends of this era-voice search assistants are almost available everywhere, from our workplaces to our houses. According to a report, the number of digital assistants in 2019 alone was close to 3.25 bn. Moreover, 72 percent of people in the US use voice search to seek information.
Source: The Evolution of Voice-activated Banking - Benori (benoriknowledge.com)
With such a massive amount of voice integration happening, it is bound to seep into the fintech sector as well. As far as banking is concerned, voice search can help reduce the stress of executing tasks such as getting credit balance, overdue, and many other banking services. Voice search can also help the fintech brands to promote their brands by using some selective keywords and expanding fintech app development for optimization.
Wrapping up
Fintech or the financial industry is one of the most important industries. The growing number of trends in the terms of security, accessibility, and feasibility is helping this industry to grow. Here we have presented some of the most obvious trends in the financial sector in 2021, which are for sure going to be in the game for this decade.
Debut Infotech is a leading app development organization that works towards integrating the latest technologies for several industries including fintech. Have a great idea for a fintech mobile app? Let’s get on board and discuss how we can help you turn your idea into a massive success.
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