The year 2020 was a wake-up call for digital innovators. Though the year was on halt due to the pandemic, the online platform went booming increasing the need for innovative banking solutions to solve the fast-paced demands of the customer. This became especially true for financial technology or fintech. The fintech industry is booming with new technology and is on the lookout for enhanced solutions. With tons of people opting for an online financial transaction, it’s no surprise that Fintech has grown to the next level. After the growth seen in 2020, 2021 expects a lot of new trends that continue to grow related to customer demand. In this post let us take a look at 5 FinTech trends you can watch out for.
Though digital banking has been in use for the past decade, the pandemic spiked the popularity and demand of the online banking system. Research exhibits that more than 50 percent of customers used digital banking. 87 percent of people using digital banking plan to continue using online banking even after the pandemic. This shows that online banking has become a necessity. Along with online banking, mobile banking has also become the match-winner. Fintech is developing robust mobile banking and online banking system.
Biometric security systems
The mobile banking system and various digital finance solutions that have gained popularity are now at the fingertips of people. But with the spread of digital solutions, security-related issues arise. FinTech companies strive to find a solution that can be used to enhance security. Biometric security systems are one of the best ways to take security to the next level. Likewise, the market of a biometric system is expanding and is undergoing major changes. The biometric systems that need physical contact are said to drop while contactless biometric systems will rein the market.
Open banking is another popular technology that brings together banks and financial technology and allows data networking. It allows the banks to make use of their data in a standardized and secure manner. The open banking system also helps to control the banking and clients’ financial data using a third-party app with AI and ML. The open banking systems are speculated to have a booming future. According to the reports, open banking is going to reach $43.15 billion by 2026. The systems offer a consolidated view of the customer financial accounts and help in better financial decisions.
The regulatory technology or RegTech is expected to bring significant technological advancements. It is going to regulate the financial industry and transform the financial landscape. RegTech performs various functions such as monitoring, risk management, and compliance software. It helps banks and various other financial institutions to cut administrative overhead and provide stability for customers. The RegTech is exceptionally known for its speed, agility and analytical features.
The payments innovation of FinTech includes various elements such as mobile payment, mobile wallets, AI and ML security, identity verification and more. The mobile banking payment is said to see huge growth in 2021 with more than 760 million users across the globe. Mobile wallets have become favourite for people as it promotes contactless payment. The apps also offer rewards, offers for the users making it most loved.
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