Of course, as every new year begins, it is quite inevitable not to make predictions. As a particularly interesting field, the FinTech trends will evolve and maybe surpass our wildest expectations in 2021.
FinTech is neither software nor a brand name. Instead, it is a collective term for technological trends. FinTech solutions also allow banking smarter and faster. Applied individually or in combination, they can make one’s business more efficient, helping more easily interact with customers, employees, or suppliers.
With the help of new-generation secure mobile applications, users do not have to waste their time on routine tasks (see our blog post about it). Allowing fintech, one can expect more opportunities to borrow money, new credit options, and generally more comprehensive access to innovation and conducting sales. Seeking mentorship and investors in this industry is not impossible, too. Last but not least essential is the fact that this field can create new revenue streams for its users. That’s the reality that financial technology is creating and will continue to do so! Let’s look at what is stored for FinTech in 2021.
1. Creating financial literacy
It is the users’ needs & demands that drive the development of the financial industry. Consumer awareness of FinTech services in the five key categories in order of customer awareness is the following:
1. Budgeting and financial planning
3. Savings and investments
5. Money transfer and payments
Solutions to support financial literacy are being designed to help customers who are bad or just not careful enough with money. For enterprises Investing in their financial literacy, this is a possibility to earn loyal customers in the long term. Moreover, advanced financial coaching solutions can be built-in in your primary application as well.
2. Biometric Security Systems
Mobile banking and other financial services have become so widely available that they are literally at the tip of one’s fingers. This incredible achievement raises lots of security related questions since cybercrime increases day by day.
Therefore, it is essential for organizations to take advantage of all the available security measures. Thus, biometrics is the best way to bring security to the next level, providing users with the confidence that their data is protected. Despite the overall growth in the usage of biometric technology for identification, contactless solutions are going to take over the touch-based fingerprint market. Also, the Covid-19 pandemic requires less cash usage and this keeps igniting the growth of the biometric payment cards market and for the near future will continue to do so.
3. Voice technologies
The previous point leads us to another functionality related to our body and senses- Voice Technology. Voice assistants are or AI-powered voice technology has evolved to not only be able to play a song but also to improve customer service in the banking sector.
Now, voice assistants can serve as automated support providing basic data on the user’s account or card balance, replying to typical questions, setting up recurring payments, and even directing customers to the right places. And consumers become ever more comfortable with this type of banking. At the end of the day, voice payments’ potential is extraordinary!
4. Open Banking
Open banking is a revolutionizing technology that brings FinTech and banks together, enabling data networking across institutions. Many industry players now predict open banking will reshape the banking sector as we know it. As per reports, this industry is expected to reach $43.15 billion by 2026! As a whole, access to open banking products and services is expected to promote better financial decision making, lower debt, improved long-term wealth, thus benefiting the banking institutions and consumers (even underserved communities).
5. Autonomous finance
These qualities of financial technology lay the ground for further developments such as autonomous finance. Conceptually, autonomous finance revolves around the idea of self-driving funds. Not only the technology helps customers make instant decisions about their money in terms of where to invest it, how to approve the loan at more favorable interest rates, or what to do with the overdrawn account. It also actually performs all those tasks for you. The autonomous part is that fintech services use the power of AI and machine learning to manage user’s money.
Global growth in finance app usage during COVID-19 has been the most dramatic in Japan and equaled 55% and the runner ups are the following – United States, China, Germany, and Italy. And this comes as a result of no surprise because this trend was evolving even before the pandemic.
One way or another, the average usage of fintech apps worldwide is anticipated to only keep going up. Therefore, it’s high time companies operating in the financial technology sector and developing innovative technological solutions empowered their business with one or several fintech trends. If you have an idea of yours, too, don hesitate to contact us!