The world has become digital and vibrant as it was never before; usually, we follow emerging market trends in business to attract more customers. Especially when it comes to the banking and financial sector, you have to adopt new trends and business models to nail the trend game. Fintech is not only about ATMs and online banking. It is an important part of the global economy, and constant innovations are making it better.
Large FinTech companies are now transforming their way of business and fostering innovation. From online money transferring to insurance, everything is becoming digital, they have made financial products more accessible and transactions more convenient. It is advantageous to customers also and creating a user-friendly finance industry.If you think that FinTech is only about using computers in banks, you are wrong. Whenever you are making online transactions related to transfer or withdrawal of cash, insurance, shopping online, you are using the benefits of FinTech, and this trend will continue to dominate in upcoming years. So here is the list of some significant trends that are reshaping the FinTech sector in 2020.
# Artificial Intelligence & Automation
Now Artificial Intelligence is no more a buzzword, it is widely used in each sector, and FinTech companies are no exception. They are continually reshaping themselves to the ever-changing needs of their customers. And one of these changes is Artificial Intelligence. AI and ML are helping financial institutions to improve their operations and customer service.Gone are the days, when it took almost 24 to 48 hours in completing the simple transactions, now banks are using modern technologies such as AI, Big Data, and ML. With the help of these advanced technologies, they are making their service more personalized and prompt. It is time-saving and less expensive.Once you implement AI in the banking and financial sector, it offers you an extensive range of benefits and makes the complex process smooth. Moreover, AI-powered smart devices can work round the clock and assist their customers instantly; it makes service more effective for those who have odd working hours.
# Cyber Security & Simplifies Payments
With the extensive usage of the Internet, these days, we are used to ordering products and services with one click. We just love this feature because it is comfortable and hasslefree. But that does not mean they are not secured. Even single click payments offer top-notch security, and in the upcoming years, Fintech will evolve and strive to provide better customer service through improvements.Security is one of the important elements to consider when dealing with any financial companies, and according to the Global FinTech Index, more than 70% of the people using online services are worried about security while making a payment or dealing with companies online in any other way.Not only the banks and financial institutions but startup companies who want to create grofers clone also designing new strategies for cybersecurity and developing the new tools of data protection. People wish for their transaction process to be smooth while keeping their data safe. Hence, many banks have adopted biometrics, voice recognition, and facial recognition patterns to prevent fraud.
# Digital Payment & Banking System
A decade ago, ATMs were revolutionizing the FinTech industry, today, mobile and digital payments doing the same. Modern generation people prefer online payment and carry less cash. They make instant payments and want them to be safe, fast, and free of charge.Highly advanced and large companies are ready to launch online banks. It means banks only exist virtually but do not have any staff to monitor the transactions. It avoids long line queues and makes a paperless transaction. Users can manage all the transactions at one place via their desktop or smartphones.With the help of the Internet of Things (IoT), banks are now offering a wide range of services, improving their customer service via chatbots, and providing solid data protection. Smart devices can also facilitate online payments and makes them more transparent.The usage of mobile baking is increasing among GenZ because smartphone users are increasing day by day. Moreover, promo codes, QR scanners available in many points of sales, which makes transactions quick and convenient.
# Blockchain Technology
The finTech industry is an early adopter of Blockchain technology, we can not underestimate the power of it because it has changed our financial lives and norms. Blockchain is trending technology and very useful to the economy. Many large financial organizations are thinking of leveraging cryptocurrency in their operations.It will be very useful for developing economies and has already made their ways into applications like KYC verification, credit rating score, supply chain management, etc. Moreover, it prevents data fraud, that is why big financial companies pay a lot of attention to cybersecurity and implementing blockchain technology.
In a nutshell, the above-mentioned FinTech trends will dominate in the future and revolutionize the finance and baking industry. These days customers are smarter and tech-savvy; they demand comfort, security, and quick transactions with personalized offers. Hence, traditional banks have to adopt change or collaborate with FinTech companies for survival.Ultimately, to survive in this highly competitive industry, fintech players have to focus on agility, the flexibility of their product design, and be ready to adopt changes according to market and technology. People have welcomed these advanced technologies to make their life simpler and easier as it was never before.