For those few who are yet not aware, Fintech refers to a combination of finance and technology to create innovative solutions for various businesses or other entities. The Fintech industry has grown by leaps and bound, thanks to rapid advancement in technology and the emergence of new financial needs globally. The last few years have seen unprecedented development in Fintech-related innovations. These developments are also pretty wide-scale. While some of the biggest names in the market are not shying away from making huge investments, we are also witnessing several fintech-based start-ups popping up worldwide.
Fintech is now officially a market disruptor, impacting every business it touches. With significant improvement in contemporary technology and a newfound willingness to invest in new concepts, you can expect the Fintech industry to grow only faster. According to a 2020 Goldman Sachs report, the Fintech industry is already worth $4.7tn, a number bound to increase in 2021. It is only sensible to be aware of all the latest trends in this field. Here are a few:
Artificial Intelligence is no longer the future, it is here and all set to affect Fintech trends in 2021. With both traditional banks and fintech companies investing heavily in AI and other related technologies, machine learning seems to be the way forward. Artificial intelligence has an unimaginable scope in finance. From detecting scams to deploying robotics to analyze customer needs, AI will soon revolutionize the already pretty revolutionary Fintech industry.
Biometric security systems
With the Fintech industry growing at the pace it is, the primary concern for people investing is security. Nobody wants the financial growth to come at a price of a security trade-off. New needs mean new, and in this case, smart solutions. Fintech companies worldwide are shifting towards using biometric security systems that reduce the chances of a breach significantly. With the entry of mobile wallets and increased dependence on mobile banking, biometric security solutions have become the most efficient option. Businesses worldwide are expected to invest aggressively in biometric security systems and Fintech is not an exception by any means.
Digital Wallets and Crypto-currencies
The trend to shift to digital currencies picked up pace during the current pandemic. With limited contact with the world around us, digital currencies came to people’s aid. Digital wallets became one of the most popular ways to accept and transfer payments.
These digital payment alternatives not only offer a user-friendly interface but also guaranteed secure monetary exchanges. Most of these wallets even facilitate refunds. That is where the success of these payment methods lies. They offer convenience along with the latest security features.
You can only expect this trend to grow in 2021 and beyond. It is highly likely that people will shift back to more conventional payment methods. As a result, be prepared to see more companies rolling out their own digital wallets. There is also a growing trend where some of the biggest companies are partnering with service providers offering digital wallets and payment assistance.
Like any other business, most of the above Fintech trends are a direct result of customer demand. Newer trends mean the customers are developing new and more complex needs. There is an urgent need to improve the accessibility, transparency, and speed of the solutions provided by Fintech companies worldwide. At the same time, there is also a need for a more secure environment for both service providers and clients. These needs create the trends described above. With the Fintech revolution picking up pace globally, these trends are bound to grow more complex and diverse.