Top 5 Fintech Trends To Watch In 2021
What is Fintech Trends?
Fintech term comes from Finance and Technology and it refers to business that uses advanced technology to automate financial services and processes. It also means any company using connectivity via internet, software technology or cloud services, mobile devices to carry out the task related to financial services. Fintech is having broad applications in mobile banking and insurance to Block chain, investment apps etc.
Merging the advanced technological developments with applications of financial services, Fintech trends has enhanced companies mainly startups and offer best financial services to companies and individuals alike.
Following trends will soon become widespread movement in Fintech:
1. Digital Wallet:
In upcoming months we foresee that this trend will boom as people find it very simple to use a single wallet to make transactions across various platforms. Using digital wallet has become convenient to customers as it is easy to get quick refunds and exchange of cash in wallet. To facilitate seamless transactions, fintech trends companies will tie up with digital wallet companies or they may come up with their own digital wallet.
2. Robotic Process Automation:
In future automation is estimated in fintech Trends industry to optimize efficiency and reduce the errors in processes and datasets. Machines will take over the traditional redundant processes like reporting, security check, Customer onboarding and compliances. Workers will be utilized for more important tasks to improve the efficiency. Few banking workflows such as background verification, loans and repayment will be taken care by implementing RPA as predictive analysis can predict likeness of individual or company to repay the loan in detail.
3. In Fintech Trends Potential blockchain benefits are growing:
Blockchain really dispenses with the need of a focal mediator to do resource moves. Furthermore, resource moves aren’t restricted to cash. They could be titles, vehicles, home deals, and so forth Blockchain likewise makes productivity. Installment exchanges ordinarily experience a focal go-between that utilizes a few stages to validate and approve the individual who’s permitted to send that esteem, the exchange of the exchange subtleties, and the genuine settlement. Settlements can require a few days. Blockchain packs the means into one stage that should be possible inside a couple of moments or minutes.
4. Payment innovation:
In Fintech, payment innovation have multiple components like AI, Machine Learning for security , mobile wallet & payments, identity verification technologies, smart speaker systems, and contactless payments. Now a days everyone is using a smartphone or tablet and they prefer to do mobile payments or contact less payment. They are on their way to ramp up and will be further accelerating in 2021.It has been forecasted that physical wallet will be replaced by mobile wallets. Maximum number of people will prefer debit cards, credit cards and rewards cards for payment transaction.
5. Artificial Intelligence:
AI plays a role in every segment like front office, back office and middle financial service industry. In front office chat bots are been used to answer the customers queries. Processes are moving towards real time, AI oversight and risk-management could become highly important in the middle office. Secondly, in back office Machine learning boosts simple credit underwriting model. It can also be used in insurance underwriting for applicant data to price policies. With help of machine vision, Insurance Company can assess claims related to car accident and flood damage. Use of AI will provide faster transactions and offer customer what they demand.
6. Cyber security:
Cyber security will remain utmost important in fintech industry as there will be new threats eagerly waiting to exploit vulnerabilities of companies, devices and their users. As Fintech Trends will be handling sensitive information like credit balance, money and data cyber security will become more demanding in near future. Fintech Trends will also install IoT for connectivity of devices to communicate with each other In such scenario there may be more chances of exploitation so force entries in to these devices will be doable for hackers. Hence the cyber security will be the top list of Finance companies and major other market players.