As all of you are aware Fintech is a word that that evolved when financial organizations adapted to the automation of their processes and service using technology as their platform.
Global Fintech revenues in 2018 were about €92 billion and is forecasted to grow to more than €188 billion in 2024 (pre-COVID-19 forecast). (Source: Mordor Intelligence, Deloitte analysis). It has become evident that companies are becoming more adaptable and cutting edge to keep up with the challenging circumstances.
The advantages that technology provides is well known and proven across many industries. The Financial organizations which have adopted to technology being their business driver in a planned and aggressive way are today market-leading ‘Fintech’ companies.
As technology is evolving with each passing day, the fintech companies are adapting to the emerging technologies to service their customers and maintain a leadership position in the market.
Let’s look at a few of the current trends:
Technology in the Regulatory space
Regulation is the set of rules and laws laid down by the government of the land and this is constantly tweaked and to keep up with these changes is a must for anyone operating in this space. Some of them include KYC (Know your customer), Trade monitoring, Risk and Tax management, etc. Technology plays a large role in making all these available on a real-time basis.
AI has and continues to help fintech companies in understanding their client’s financial patterns and help them tailor specific offerings, further AI also helps loan providing fintech companies offer or reject loans based on the data about the specific individual/company. AI also helps investors with data so as to make better decisions based on their own evaluation. According to a Forrester research group report, some 50+% financial services organizations and insurance companies use AI Globally, and this continues to increase every passing year.
We live in an age where security is our biggest concern and more so when it comes to finance sector. Biometrics helps in the identification part which is very crucial in any transaction, fingerprint recognition is very common when we do financial transactions using our smartphones, this for sure adds that higher level of security.
Robotic process automation:
RPA is increasingly gaining traction especially in the Fintech space as this reduces the errors that were caused by humans and of course enhances the efficiency and can be trusted for accuracy.
When we look at the Fintech space, the need of the business is efficient processes and speed, blockchain technology provides this and assures security while it helps in reducing costs.
Digital Product Offerings
Speed and ease is what any customer is looking for when it comes to financial investment or securing a loan, fintech companies that provide their products on a digital platform that can be easily accessed and configured by their customers certainly have an edge over traditional financial offering.
A customer today prefer to read, understand, and take immediate decisions on their requirements, these digital product offerings will for sure help in faster customer acquisition. It has become evident that digital innovation’s accelerating pace is the most creative force in the present time’s financial services ecosystem. These emerging technology trends will continue to drive FinTech innovation in 2021 and beyond.