2020 was centered around digital transformative efforts because of the (largely still ongoing) Covid-19 pandemic. In a way, for the financial services sector, the pandemic that forced a push away from paper driven transactions has now proven to be a boost, setting a new standard for the future of finance and fintech.
The accelerated need to resort to safe, digital-first systems is now a top priority for financial service providers while for fintech innovators, building platforms that can enhance the overall end user experience when making transactions of various kinds is a key driver in enabling better products and features.
Here’s why 2021 is set to be (another?) exciting year for global fintech as result of the recent economic and business impacts around us:
Insurance Providers and InsurTechs will Focus on Introducing more Convenient End User Features
If there’s one thing the ongoing health pandemic is showing employers and individual’s – it’s the need to invest in better types of insurance, but buying insurance of any kind has usually always been a painful experience and lots of manual paperwork. With the pandemic forcing not just financial institutes but also smaller to mid-sized insurance carriers to provide better and streamlined digitized workflows, insurtechs are now exploring the opportunity further where they can capture market share with innovative features that make insurance buying easier. With a focus on building better user centric capabilities, leaders like Emma, Breathelife and many more are creating waves to suit user needs.
Payment Platforms; Deeply Integrated into E-Commerce Systems for a Better End to End Shopping Experience
Online shopping is now estimated to drive billions in sales worldwide and the Covid-19 pandemic is just an accelerator of this trend, to create new forms of safer, more integrated online shopping experiences, paytechs and e-tail platforms that work more closely to create integrated experiences will serve to boost user interest and lead to increased customer base. With leaders like Amazon already integrating their own payment systems, smaller players have the ability to capitalize on the innovations being offered by the global payment solution market. Shopping platforms like Bambuser have already been innovating to meet today’s diverse needs but with integrated payments and cashless order and payment facilities, the future of online shopping is set to become easier and more seamless – taking it a step ahead: besides the innovative fintech capabilities that boost these solutions, the increased use of Augmented Reality to boost live shopping and product demos will redefine how customers of tomorrow invest in products and services of various kinds at the click of a button without the need to interact with the brand’s reps. Going a step further, the future will probably see a lot more deliveries of products by bots (and not humans) too.
Autonomous Finance in Business and Retail Banking
Today’s business processes (sales, marketing, even finance) needs to be automated, old financial management platforms and legacy systems will be replaced to implement more forward, intelligent systems that allow providers to instantly correct and calculate amounts while ensuring better management of finances for the end use through self-serve models that prompt for corrective and preventive steps while making transactions online.
The future of personal banking will soon start to look like a seamless automated model where users may just have to watch as their payments are seamlessly credited into their savings or checking accounts while the right funds are then further deployed for various purposes: investments, retirements, utility payments, etc.
BNPL Features will help Businesses Grab more Market Share while Protecting Earned Wages
Alternative lending platforms are already changing how businesses are accessing required capital to meet challenges and growth or expansion requirements allowing borrowers to be approved for finances a lot faster than before. In addition, the new boost to Buy Now Pay Later capabilities will help create a more easier flow of capital between users, providers and businesses to boost overall economic sustainability.
Fintech is not just restricted to enabling services within a certain segment or market today, it can overhaul systems and redefine trends in many ways, even boosting how employee benefits are maintained while access to earned wages is made easier.
The year 2021 is set to create new outcomes and opportunities given the dynamics in the market today.