Best Technology Trends For Fintech and Business Development

“Business and financial institutions must be able to deliver an easy to navigate, a seamless digital platform that works efficiently in every situation” It is true with the times all of us have been through in the past 2 years it was the technological advancement that came and saved us. In a way the Covid-19 pandemic was a blessing in disguise, the technology that all of us were reluctant to adapt in the past, we were forced to adapt to the environment and start using the technology.

It is unavoidable to keep up to date in the fintech business. Around 10,000+ fintech firms are prospering internationally by providing fintech as a service, and the number is steadily growing.  It has evolved into a major “disruptor,” influencing every market and area to which it belongs. Fintech and companies, in general, have faced more challenges in the last year than anyone could have predicted. As the coronavirus epidemic drove businesses to examine their robustness, many found it vital to direct resources into development.

According to Goldman Sachs, the fintech industry right now is worth more than $4.7 tn.

The fintech sector is changing dramatically as time goes on. And these changes have an influence on practically everything, including payments, money, and banking. Today,  organizations, startups, and corporations involved with fintech solutions recognize the significance and value that implementation offers. In recent years, we’ve seen fintech trends foray into new territory, supporting individuals and consumers with a variety of business and lifestyle difficulties. The same is expected this year. The need for fintech solutions has never been greater – making 2021 a pivotal year for the evolution of the fintech sector across numerous areas.

Fintech and business development goes hand in hand. It is with the help of fintech that business is developing in the current times.

Fintech in Laymen term:

Fintech refers to software and other modern technologies used by corporations to deliver simplified, automated, and better financial that is banking services to businesses and organizations all over the world. Technology that supports fintech are artificial intelligence,  blockchain, biometrics, eCommerce, and others.

It is not a computer programme. Nonetheless, it is a fintech solution that makes financial services smart and simple. With a unified ERP solution, it makes company more efficient enough to engage with consumers or workers.

Finally, financial service technology developments generate a new revenue source. Selling items and services online, and receiving digital payment in any form that is legal and easy for all parties involved – this is what fintech technology is establishing.

The current fintech industry and business development trends evolving 2021 and beyond are as  follows:

1. Digital–only Banking

Digital-only banking is a new type of bank that offers financial services to consumers without having a physical presence anywhere. It offers virtual banking services such as international remittances, the purchase of cryptocurrencies such as bitcoin and Ethereum,  peer-to-peer transfers, a contactless Mastercard with no transaction costs, and more.

A digital-only bank does not have its own license and is run by an approved banking partner for regulated services. This type of banking system has grown in popularity since it saves clients time by removing paperwork and the need to wait in huge lines.

Digital only banks are expected to get a huge rise in 2021. According to reports, due to digital-only banks, there will be a large (36 percent) reduction in visits to physical banks from 2017 to 2022.

2. Voice Assistant

AI-powered speech technology has grown to improve and enhance the client experience in the banking sector, not merely to provide weather predictions or simply play tunes. Voice

help can function as an automated support agent, answering common customer queries,  giving basic account and card balance data, scheduling and classifying calls, setting up recurring payments, and so on. Additionally, the customer’s voice may be utilized as biometric data to start a payment (also known as Voice payments), which calms customers.

Voice payments have enormous possibilities, from moving dollars between accounts to giving money to pals via platforms such as PayPal. The only issue is the loss of customer trust as a result of security breaches.

3. Customer communication

What customers desire is changing, especially in the aftermath of a pandemic that has utterly disrupted daily life. Many people, for example, claim they will continue to purchase online after the epidemic. However, with so many options available, customers are yearning for more personalized purchasing experiences.

So, develop innovative ways to communicate with your consumers and ask them what they want from you. If you use this as a method of boosting customization, you may notice an increase in your success rate of between 50% and 400%.

4. Regulatory Technology

Companies may use regulatory technology to utilize innovative software solutions that ease the compliance process with existing laws and regulations. Identity management, transaction monitoring, risk management, and compliance software are all subsets of these systems.  Technically, these automated RegTech solutions are constructed in such a way that they can learn from the patterns of enormous amounts of historical data. Big data and machine learning language are used to automate these massive amounts of regulatory requirements.

RegTech deployment may significantly cut administrative expenses, preserve financial stability, and safeguard customers.

5. Usage of Artificial Intelligence and Machine Learning

Today, banks all around the globe are eager to incorporate artificial intelligence into their daily operations. According to the most recent research, using artificial intelligence powered by RPA is predicted to lower bank operational expenditures by 22% by 2030. In other words,  by using artificial intelligence, banks may save $1 trillion.

In 2021, fintech apps may continue to leverage AI and machine learning in autonomous finances to save users’ money by assisting them in making fast decisions about their money investments, chatbots to answer consumer enquiries, and managing cybercrime by recognizing financial frauds. Robotic process automation using AI may also be utilized to automate backend activities like as security checks, client onboarding, and other tasks.

6. Data Protection

“Data protection is a huge concern these days, as more people part up their personal information in order to connect with companies online,” says tech blogger Antoine Bechara.  As a result, individuals are becoming more cautious about which firms they provide their personal information to. Data security has emerged as a critical factor in corporate  development.”

Approximately half of all consumers think they are more inclined to trust a firm that only requests information directly linked to the items being offered. A comparable number of people trust companies that are open about security flaws and respond fast to them.

7. Data Processing

In the realm of internet data, more organisations are using what is known as “big data” to provide better products and services to their customers. However, as the term implies, big data is too large for traditional data processors to manage. Recent blockchain advancements are altering how data processing is handled, but those hoping to capitalise on increasingly complicated collections of data will need new and specialised platforms. I will talk more about blockchain in next point.

8. Blockchain Technology

Blockchain technology has successfully transformed the way the fintech business operates.  Transactions are now completely safe and secure thanks to this cutting-edge technology. Banking and financial organizations are embracing this technology in order to capitalize on its benefits in the business world.

According to the most recent Business Insider intelligence reports, 48 percent of banking representatives believe that blockchain technology will have a stronger influence on the banking sector in 2021.

Once data is stored in the blockchain, it is exceedingly impossible to change it. Its cross-border payment mechanism ensures the security of payment credentials and information. Its decentralized payment method has prompted numerous peer-to-peer financial platforms to conduct monetary transactions and so increase their investments.

One of the most famous cryptocurrency bitcoins uses this blockchain technology and now bitcoin is gaining the price and the success. One of the safest currencies right now is bitcoin and that is because of blockchain technology. People who got bitcoin in the 2005 as a coupon and gift are selling them today. It has been kept still for all this year yet no one was able to steal or damage it in any way. Cryptocurrency is the future of the currency.

9. Open Banking

Open banking is yet another game-changing technology that connects banks and fintech by managing data networking across financial institutions. It is connected to PSD2 (second payment service directive), which requires banks to share data standard formats to allow digital information sharing simpler across enterprises. It manages customer banking and financial information using AI technologies and different third-party APIs.

Open banking generated $29 billion in 2018, according to the report, and is expected to expand to $43.15 billion by 2026.

Customers will benefit from an integrated view of their accounts in a single location as a  result of the open banking relationship. Open banking products will promote better financial decisions, long-term wealth creation, and debt reduction.

10. Financial Literacy

As the number of embedded finance programs grows at an unprecedented rate, the requirement for financial literacy education grows.

According to Investment News, 57 percent of individuals in the United States are financially literate.

As you may have seen, the younger generation has less success in saving and more financial stress. Even fintech businesses that deal with debt data, regular payments, invoices, and spending activity data confess that the bulk of their consumers are bad with money management. So, can we change such hazardous behavior? Yes! By integrating sophisticated financial literacy solutions (applications) as prompts in a simple banking application. It will teach financial literacy skills, provide overspending alerts, savings and investment recommendations, and gradually transform customer behavior to interact with money more healthily. Applications like Zogo, Penny, and Investmate are excellent examples. It will increase client satisfaction with minimal effort.

Now, the real challenge is pandemic proof banking, though nowadays, it is more of a need than a  fad. The Covid-19 epidemic has caused a slew of issues. Having said that, another major problem for the fintech business is developing resilient, secure, and pandemic-proof banking platforms.

Conclusion:

As we approach the end of year 2021, we will see how the aforementioned developments improve financial services. So, in order to survive and avoid falling behind, listen to your customers and win their confidence by providing transparent and flawless experiences. You must protect their privacy and stay current with industry best ecommerce developer. So, if you want to capitalize on these trends, provide the consumer with a straightforward, easy, and convenient approach to handle funds. Speak with our mobile app development professionals about creating a  comprehensive yet easy financial app for your company.

Author Bio

Ekta Patel is a technical writer and digital marketer at Selected Firms – detailed analysis of top IT, mobile, web, digital marketing and E-commerce development service USA. Skilled digital Marketer with 7 Years of experience in eCommerce SEO marketing, Google AdWords, and social media content building. Successfully increased organic traffic by 70% for small and medium sized businesses in the eCommerce sector. Has also built content for the company websites/apps, blog and case studies. Has profound experience in working for IT organizations and is responsible for introducing the latest eCommerce trends to the team.