About a decade ago smartphones, iPhones, sophisticated android smart devices exploited the market. This actually helped shaped fintech for the world, in a way. The more accessibility people had to everything around them via their personal devices, the more they craved. Â Expectations from Fintech are no different.
Tech companies in collaboration with financial institutions now offer a range of unified services, we are now used to an era where our bank details and personal funds can be accessed whenever we want without the need to really go anywhere.
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While enjoying the innovative trends of current banking systems, there’s more to look forward to in the future. Experts are looking at the wave of technologies that will shape the future of this industry. Let us have a glimpse of how new innovations will drive the next decade:
Tapping the untapped – the unserved and the undeserved
Fintech has exploited the market already, yet there are many unserved people. As per the world bank, more than 1.7 billion people in the world do not use any kind of financial system. In the next decade, fintech is set to enable these people.
For small financial start-ups, it is important to start small and think big. A business should seek innovative methods to interact with new locations and potential customers.
Fintech Cyber Security and Stability
Stronger customer authentication (SCA) will become need of the hour, the deadline for the same has been shifted to 31st December, 2020. This remains on the priority list of fintech trends. Data theft was always a great concern in the industry. That is why, the aim of fintech regulators is to boost competition and innovation here thereby improving the financial choice for customers along with the ability to offer complete security.
Digital Only Banks
This is self-explanatory. And many of us are experiencing this. The DBS Bank (a Singaporean multinational banking and financial services corporation) is known for it’s digital only service via their banking app. Fewer customers choose to physically visit their bank today, payments and transfers are driven via net banking facilities or banking apps. More user-friendly mobile apps are going to be a part of fintech trends and innovations. The popularity of digital solutions are going to increase with an increase in online users by 71%. In the upcoming decade, the focus should be on improving and securing online global transfers, AI financial assistants and fintech mobile wallets.
Exploring Big Data
Big data is already at the epicentre and every market is exploiting and using big data in their own ways. Big data enables innovations in fintech to improve customer segmentation, fraud detection and risk management. Big data has always helped fintech to push its own boundaries, to offer personalised products for their clients. This is only going to increase in the future.
Unified and Centralized Finance
We are already experiencing unified and decentralised banking systems. Fintech payment platforms are going to be consistent in providing a more centralized experience thereby helping companies to bring down their costs, increase speed and efficiency and provide more transparency.
Chatbots powered by Artificial Intelligence are talked about in every segment besides Fintech. If you have heard about the conversational banking feature adopted by HSBC, Morgan Stanley, JP Morgan and so on, you know what we are talking about. The scope of artificial intelligence is not limited and the future will have many robust technologies to support the backbone of banking.
Fintech Consulting
Outsourcing is nothing new. Even the best financial institutions seek advice from technological consultancies that help them deal with daily issues thereby streamlining the collaboration of finance with technology. There are many benefits of hiring a reputed fintech firm to avoid mistakes, add more innovation to your cap to equalise the distribution of resources.
Cloud Adoption
Cloud adoption allows companies to offer more security, resiliency and regulatory compliance coupled with a personalised experience for the customers in a unified manner. Talking about robust and personalised services, cloud computing plays a critical role. In the future, the businesses will be more ready for cloud migration.
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