Before the pandemic, the financial industry was slowly adopting artificial intelligence (AI). Once the whole world went into lockdown, financial companies and their partners were practically forced to adopt mobility solutions to automate their entire service processes. Here we will discuss Top Trends that will Drive the Fintech Industry.
The adoption of AI, automation, and mobility solutions has made these financial institutions more customer-centric. Various upcoming advancements and implementations are happening across the entire financial industry all around the globe. So, let us now understand the Top Trends that will Drive the Fintech Industry in the recent future.
Studies have shown that in 2020 alone, most people created at least 1.7 MB of data every second. Customers and providers in the fintech field usually tend to generate large volumes of data.
This data can be aggregated to arrive and a far more comprehensive view of any customer’s financial standing. Naturally, financial institutions will now try to partner with data aggregators, especially since they can use this big data to improve their services while ensuring that better customer retention is achieved.
This is one of the Top Trends that will Drive the Fintech Industry. No one imagined how quickly online banking would evolve. Very soon, we will see voice-enabled services become the norm. Individuals and businesses will conduct routine banking operations swiftly and seamlessly.
And to top it all, it would be one of the most trusted ways of retail banking. Customers can get faster responses by sending the queries over voice rather than typing them out.
Banking transactions will also become relatively easy once natural language generation, natural language understanding, and natural language processing make further improvements. This will also ensure an almost human touch to the entire process, although the teller at the other end would not be a human being at all.
Robotic process automation (RPA).
Robotic process automation enables and assures far better work efficiency than man will ever be. Far better work efficiency can be achieved through RPA and a relatively small investment. Human resources will be freed for better use while bots and software robots take their place. We can expect a marked improvement in the various repetitive business activities and routine jobs.
Some studies have shown that the size of the entire global blockchain market is expected to increase by at least 13 times more by 2025. Without question, the most significant financial innovation for many digital transactions is blockchain.
Since blockchain management is distributed and cannot be controlled by any specific individual, government, bank, or even company, it is a far more reliable sphere to carry out transactions safely, securely, and quickly. This cutting-edge fintech innovation is entirely secure too. Soon, blockchain’s capacity as a secure digital Ledger will become more accepted.
Data accumulation and aggregation.
Data accumulators and data aggregators will become more responsible for facilitating how data is exchange shortly. Naturally, financial institutions and their clientele will also need such facilitative processes for a seamless performance and secure environment.
As it is, even today, we find some data accumulators and data aggregators, as well as data miners, source and retrieve from multiple source points that are away from the financial institution itself. They even source and aggregate credit cards and investments as well.
Therefore, it is pretty evident that shortly, fintech organizations will utilize this same transparency to provide additional services to their customers.
White labeling in fintech.
White labeling is one fintech trend that will create ripples very soon. Here, a particular provider makes various white label products, which others can then rebrand before they’re sold. Financial management is pretty complex, and white-label printed solutions will ease the entire process of various aspects of financial management.
Having white label fintech solutions can help businesses of all sizes to create a global payment gateway to facilitate all of their payment processes under a single centralized solution. Since the distributor will be able to cater to a large customer base, and initial costs will be reduce for the resellers, the entire scenario is bound to become an absolute win-win situation for all the players.
The ever-changing consumer habits have increased more during the pandemic. There is a tremendous rise in bank closures as well. Of course, there has been improve customer experience and delivery after digital banking became more critical. Digital banking also delivers quicker and more efficient services.
Statistics have shown that digital banking services account for a more significant share of banking operations in transactional aspects, especially after the pandemic hit the entire world. So, we can see that online banking has become the primary transformational tool in finance.
That doesn’t mean that digital banking is only about going paperless and cashless. The focus of remaining within a centralized, traditional banking model, a technologically driven model, is what digital banking is all about. The various underlying technologies have made digital banking even more critical.
It is only evident that the fintech scenario will never remain the same again after the pandemic is over. During the pandemic, we have understood precisely what any digital economy will look like. We now have an understanding of what to expect as we move forward.
The pandemic has also broadened our scope and acceptance of the digital world and how fintech will also become more driven by mobility solutions. Suppose you wish to have a competitive advantage. In that case, you must keep yourself well accustomed and abreast of all the developments that are taking place now to adopt the transformation and delivery of digital fintech solutions as soon as you can.