Introduction to FinTech
The term Fintech or financial technology is used to describe software and modern technologies that provide improved financial services to businesses and banking sectors. Fintech is a combination of “financial technology”.
The fintech development services are implemented to help business owners and companies to easily manage their finances and related processes that are used on smart devices like computers and smartphones.
The fastest growing innovative development such as online shopping and mobile payments have changed the way we manage our finances.
Fintech makes relationships better with clients by launching Crowdfunding platforms and also allows you to receive support without investing a huge amount of money from conventional investors. Fintech startups operate fast when implementing new services based on changing demands.
In this blog, we’re going to discuss the fintech development trends you should follow in 2021. So, without any delay, let’s get started!
The modern advances and new technology innovations like artificial intelligence and machine learning will take the habit out of financial decisions.
ML-based applications will not only learn the habits of users but also engage users in learning games and saving decisions better. Here are the top trends to watch in fintech development in 2021:
Big Data Management
Fintech organizations have to collect a huge amount of data and half of the data is unstructured which needs to be processed. This data is required to identify potential risks for better decisions and important trends using powerful analytics tools.
The Fintech industry also collects structured and already processed data from loan application forms and bank statements.
The crucial goal for 2021 is to manage all information as well as data insights to identify opportunities, optimizing products and services. However, the fintech development team develops applications to extract information quickly and speed-up data processing.
Optimized cybersecurity is a priority for many fintech industries as new threats are waiting to utilize the tech vulnerabilities of users and companies.
The Fintech industry is dealing with sensitive information like credit balance and data, and cybersecurity will be in full-demand in the coming years. Also, fintech is corporating IoT where various devices interact with each other.
In such situations, utilizing entries into these devices becomes doable for hackers. So, cybersecurity is on the top list of to-dos for major fintech industries.
Robotic process automation takes place at significant levels across many fintech domains which are already established with AI systems capable of taking autonomous decisions.
In 2021 and beyond, automation is predicted in the fintech industry to optimize errors in datasets and processes. Human intervention is required for some redundant processes such as reporting, onboarding, and much more will be taken care of by the machines.
A report generated by Business Insider Intelligence presented that more than 40% of banking representatives believe that the new and modern technologies such as blockchain will impact the most on banking in 2021 and beyond.
The blockchain has inspired the development of fintech platforms that allows economic interactions that help to improve existing procedures and systems.
In the growing technical era, voice search is the future. Most of us have virtual assistants in our workplace in the form of smart gadgets, speakers, and much more.
The number of digital assistants was 3.25bn across the world in 2019 alone. More than 70% of the people in the US use voice search to collect certain information.
The Fintech industry also uses voice search for promotions during the process of fintech app development.
New fintech innovations have been at the forefront of tech disruptions in the past years. At the end of 2017. There were 30+ fintech unicorns globally including Klarna, Adyen, and Transferwise.
Established banks are now trying to connect with fintech startups to reinvent their business model in 2021 and beyond; also, more than 20 billion was invested in the fintech industry worldwide. Businesses now focus on technology and innovations to identify the rising stars in the industry early on.
Here are the few most active areas of fintech innovation:
- Digital cash
- Open banking
- Artificial intelligence and machine learning
- Financial literacy
- Contactless payments
- Autonomous finance
The fintech services are accelerating and it is picking up momentum. By now we have discussed the best trends to watch in 2021 in response to customers’ demands.
They help providers deliver improved services that enable increased access to fintech/financial information, better transparency, security identity authentication, and support for the customer lifecycle.
Walk with the fintech trend, listen to your clients, earn their trust and make sure they choose you to make tech investments to assign the recent technological developments with the people you’re looking for.
We hope this blog was helpful to you. Also do let us know what will be other fintech industry trends depending on your experience and expertise. Share in the comments section.