7 Technology Trends That Will Drive Fintech Growth in 2021 and Beyond
Fintech has seen significant growth since the inception of smartphones. From payment apps to finance management, smartphone technology has taken over the majority of fintech operations. But, fintech is still emerging and bringing out new trends and technologies. In this blog, we are tackling a few fintech technology trends that are currently making finance-related tasks super easier.
Among all fintech technologies, blockchain is making a real impact on the market. A report by Markets and Markets states, the blockchain in fintech is expected to touch a value of $6,228.2 million by 2023. The main usage of blockchain includes Big Data Management, Fintech Data Security, Better Encryption, and more. In short, blockchain technology is the future of the finance industry and many best finance apps have already started using blockchain technology for services like Crypto.
AI-supported customer assistance
Many leading banks across the world have already adopted AI to serve customers faster. From simple solutions to advanced assistance, these AI are able to help better now. Some tasks like KYC verification, loan approvals or disapprovals, and financial advice among others are being executed by the AI already. Another term used for this trend is Robotic Process Automation (RPA).
Instant payment confirmations
This trend has been growing for a while now. Banking institutions are trying to ensure that transactions made by parties are not stuck in between waiting for the confirmation process. Instead, with the help of an AI, they are able to observe the user behavior and confirm the transaction instantly if it does not give indications of the fraud. Some security measures the AI uses to observe before confirming transactions include Biometrics, Pin verification, and One-time password (OTP) verification. It is also creating a better service opportunity for e-commerce businesses and other institutions that are involved in financial transactions.
With the help of blockchain, fintech companies are uploading smart contracts on their servers. Smart contracts are used to automate the settlement procedure for services like insurances, fixed deposits, and more. There are terms and conditions added to smart contracts that are saved on the blockchain server. Once a user files for the claim, these terms and conditions are used to observe their eligibility. It makes the settlement process way faster than before and also, reduces the operational cost.
The loan process is getting modernized day by day. Now, AI is capable of observing the credit behavior of the applicant and process their loans accordingly. It’s fast and reliable as the AI uses users’ history to predict their ability to repay the loan. Moreover, other services like reminders call for the repayments missed payments, and more can be done by the AI as well.
Open-source APIs are the future of the fintech industries. To make banking apps compatible with as many platforms as possible, open-source APIs are growing in numbers. These APIs are also creating opportunities for developers to build innovative applications for users by assisting them in their financial tasks. Open APIs are helping financial institutions in expanding their networks across multiple countries.
Effective asset management system
Apart from keeping assets safe virtually, some fintech apps are also helping users in growing their virtual assets. For instance, there are fintech apps that reward users with cryptos. It not only increases the user’s interest in the app but also their lifestyle. Take SweatCoins for example. SweatCoins are rewarded to users for walking. Thus, users can keep themselves fit while earning coupons and cash. This finance software development trend has been growing quite rapidly among financial institutions.
Well, these were the crucial fintech trends that we needed to talk about. Now, as new technologies and possibilities emerge into the market, it will be exciting to see new trends that emerge in parallel. Hopefully, you find this blog useful.