Fintech is the integration of technology aimed at making financial services more accessible to the greater public.
Fintech companies are designed to help companies and consumers easier manage their financial operations, processes, and lives.
Fintech has already driven greater access to and convenience of financial services for users. A host of new companies have sprung up to apply new technologies to meet customer demand and most incumbents indicate that digital transformation is a strategic priority. Indeed, big corporations are rapidly closing gaps in the digitization of internal processes and customer offerings, to compete with fintech companies and successful startups that have also entered the fray.
Consider fintech trends and use them to drive bigger revenue in the future and reinforce the overall company’s performance.
Top Technology Trends In Fintech In 2021
We have seen drastic growth in FinTech during the pandemic. As the banks shut down, people turned to virtual financial services. A FinTech solution is a new norm and 96% of consumers around the world have reported using it, once in their lifetime. So, what are the latest fintech trends in 2021?
- Artificial Intelligence
Artificial Intelligence (AI) enhances outcomes by applying methods based on aspects of Human Intelligence at a beyond human scale. In the financial industry, AI can be applied in three major areas.
First, banks and insurance companies are already using machine learning to build accurate predictive models that enhance decision making around issues like blockchain, direct marketing, credit card transactions, and so forth. These predictions help financial specialists utilize current data to discover trends, identify risks, and ensure better information for future planning.
Second, Artificial Intelligence in finance can be used for fraud detection and delivering personalized recommendations.
Third, AI can be used to help customers monitor their budgets and make real-time spending adjustments.
The overall benefits of putting on machine learning in your app or website are monumental. AI use cases can change the finance industry by:
- Enabling 24/7 customer interactions
- Decreasing the need for repetitive work
- Lowering false positives and human error
- Saving money
- Blockchain Technology
Nowadays, blockchain is more than just cryptocurrency. The technology has a lot to offer for the financial industry – from improving payment transparency and security to reducing the cost – as it uses secure hashing algorithms and distributed ledger technologies that make payment faster, cheaper, and more convenient.
There are several benefits related to the use of Gamification, but those inherent to the purely emotional side and linked to the customer’s ego, have a clearer positive impact, as they lead to a greater level of involvement and loyalty. Here is an example of how gamification in the financial field has successfully been implemented. BBVA, a Spanish leading bank, launched a web application with videos on how to perform ordinary banking operations and tutorials on mobile banking apps. With each completed transaction, the users earn points that can be used directly to purchase music downloads, movies, and tickets.
Chatbots not only allow customers to manage requests faster and more efficiently, but they also help learn a little more about your customers, about their wants, needs, and even plans for the near future. All this information allows you to deliver personalized service, like offering products or services that best suit their situation.
- Voice-based technology
Speech recognition and voice technology are on the rise. The tech giants like Apple and Amazon have all launched products that support voice technology. And the reason is: voice-based technology solutions are simple and easy to use. In addition, with a voice assistant, it becomes seamless to access any website or to operate any software solution. That’s why the adoption of voice technology is a must-have.
Fintech application development only starts to accelerate as new solutions come into the fintech sector and prove numerous benefits for organizations. What to make your product successful? First, understand what your customers want, then, have a step-by-step plan, and finally, explore trends that help you understand which direction to move forward.