Fintech or Financial Technology is a popular term nowadays, catching many eyes and bringing a positive change in the industry. Whether it’s a bank or financial institution, they are now showing a high interest in opting for such services to avoid overspending, navigate risks and help manage their finances better. If we say precisely, fintech improves the productivity of the financial industry by bringing new techies. In 2018, 70 percent of senior banking executives believe collaborating with fintech is the best opportunity for banks to improve their service.
Every year, fintech encounters a huge advancement and trends one should be aware of to stay ahead of the game. And if you’re interested in knowing what they are, you must read this blog now. But before we discuss the top fintech trends, let’s have a look at what fintech is.
What is Fintech?
Fintech is an integration of technology into offerings that companies perform to improve productivity, use, and delivery to consumers. It offers a creative solution for businesses and financial services providers to serve them better.
People generally get confused with the term fintech. But it is neither a brand name nor a piece of software. When fintech solutions are implemented, they can make banking more effective, quicker, and smarter. Not only this, but it will help interact with clients, suppliers, or employees more easily.
Top Fintech Trends that Deserve Your Attention
Below, we have covered the top fintech development trends you should be aware of in 2022. The pace of adoption of these trends is quite notable today. So, you must check out all these trends to know if you want to give an edge to your financial business.
1. Digital-Only Banking
Have you ever wondered how easy money transfers, global payments, and purchasing or exchanging Bitcoin or other cryptocurrencies have become? Thanks to Digital Only banking that has made all the bank stuff easier. You don’t need to visit the bank physically, and no need to go through the tedious paperwork process. With such ease this digital-only banking takes the user experience to the next level, providing benefits, including feasible cost management, fast bill payment, real-time analytics, and fast balance review. The rise of this modern way of doing banking has dropped the visits to banks to 36 percent from 2017 to 2022.
2. Biometric Security Systems
Today, everything is available at one’s fingertips. But at the same time, it also raises many security-related queries. This is why it is crucial that fintech companies take all the necessary measures and one of the popular ways to bring security to a further level is the biometric system. It safeguards sensitive information providing security with unique solutions that verify identities.
Presently, the biometric market is experiencing massive changes and taking this market to the next level, introducing contactless solutions. The popularity of biometric systems that require physical contact is dropping, at the same time, boosting contactless solutions.
3. Blockchain Technology
Did you know the Business Insider Intelligence report says around 48 percent of banking representatives believe that technologies like Blockchain will have the biggest effect on banking in 2020 and beyond? Experts say that this all-new Blockchain technology will be going to bring a huge transformation in financial systems. This technology offers a new way to decentralize finance that concentrates on reducing centralized procedures. By now, blockchain technology has encouraged many financial platforms to perform monetary interactions in a more decentralized manner. This technology improves current procedures and systems. Today, banks are also showing high interest in its usage with the hope of reducing expenses and enhancing internal procedures.
4. Artificial Intelligence
Artificial Intelligence is another term that has driven the world passionate about it. Today, banks are also adopting AI to enhance the overall working of the institution. The greater acceptance of AI in this banking sector has lowered the operating expenses of banks and will surely do the same by 22 percent around 2030. This stat by Autonomous research also says that banks can have $1 trillion in savings by adopting AI. But at the same time, the way towards this outlook is quite difficult as banks still don’t have AI-skilled experts.
AI use in the banking sector also helps manage the rising financial fraudulence threats, cybercrime incidents, and more. Presently, AI is popular for having the most efficient client service software like chatbots. Fintech is also enjoying the best of this technology, enabling quicker transactions and providing clients the feasibility they strive for.
5. Reg-Tech
The financial industry demands innovative creations that can bring simultaneous growth and enhance the overall experience. This financial sector is a regulated sector that has evolved to a good extent to meet the massive development of compliance expenses. In order to introduce new regulatory innovations, reputed financial actors, legislators, and tech firms work together. But at the same time, it requires time for maturing.
6. Payment Innovations
When we talk about payment innovations, the list is quite long. From contactless payments to smart speaker systems, mobile wallets to mobile payments, AI and machine learning for security, and many more, giving an edge to the way of doing payments.
According to a statistic, the global mobile payment market is expected to expand at a CAGR of 31.8% from 2021 to 2028. Not only this, but a study also shows that 8 in 10 customers prefer contactless payments. In short, this unique method of payment is becoming a new norm. In simple words, mobile wallets have replaced physical wallets. This payment method has acquired a huge audience, and one can conclude with the fact that there were almost 2.1 billion mobile wallet users.
7. Alliance for Financial Inclusion
Fintech delivers huge advantages not only to nations but also to every client. When fintech is done not following the right strategy, it can take you, marginalized players, away from their goals. Thankfully, The foundation of the AFI (Alliance for Financial Inclusion) is here to ensure that fintech development doesn’t leave out big sectors of societies as it shifts fast, changing the worldwide economy.
8. The Coming Trend of Platform as a Service (PaaS)
When it comes to convenience and security, fintech always struggles. As we know that banks can adjust, as per the evolving regulations, customers can benefit from the APIs to their data. PaaS plays a crucial role in helping institutions to adapt to the constantly changing needs with customized infrastructure, which allows them to hold cloud platforms. These services provide the infrastructure ease to perform a variety of tasks, including resource management, team collaboration, payment processing, & credit risk management.
Conclusion
So, this is all about the fintech trend you should know this year. After all, the financial industry is growing at a rapid pace, and it is crucial to stay updated with the latest trends so that you can make the right move at the right time. So, if you want to give an edge to your financial business with something creative, connect with 75way.
75way is a most trusted and leading fintech solution development company specializing in creating fintech solutions that could deliver a smooth and transparent experience to clients and businesses. We can help you earn your clients. So, what are you waiting for? Get in touch with us today!