The year 2020, has pushed our world to its limits, letting businesses to hit the digital road for good.
Here, we cannot skip mentioning how wild fluctuations caused due to the pandemic, have rocked the global economy. This is where FinTech-financial technology has evolved to be a crucial engine fueling the digital revolution’s advancement.
The relentless digital trends have brought more collaborative efforts to strike the right balance between responsible innovation and safety in 2021.
In this post, we are going to take a look at the most promising FinTech trends, and how they would play an outsized role in the global response to the next economic revolution in 2021.
Let’s dive in together…
Big Data and Analytics
Big data and analytics are the hottest fintech trends that can never be ignored. To be précised, Big Data deals with every type of data coming from users’ phones, tablets, laptops, PC, and other devices. To make the usage of this RAW data, analytics come into force. The information derived from Big Data can be utilized to predict customer actions and preferences, further, it can help bans to create policies and develop strategies for growth.
DeFi- Decentralized Finance
As the name suggests, DeFi is one of the most promising decentralized financing instruments, working along with loans, savings, insurance, and trade. In simple words, it is an open financial network offering products but without an intermediary and is based on peer-to-peer. Despite COVID-19 outbreak has tremendously affected the global economy, it is expected this trend will set a revolution in 2021, due to its tremendous potential.
COVID-19 has opened a digital passage for different businesses to interact with their customers digitally. And in this race, the banking sector is no exception, however, they are required to build a system to access, manage, analyze, and control massive data storage. The emergence of “financial health” has triggered financial institutions to compete on offering the best possible consumers’ financial health and performance. And this is where cloud computing will pave smooth passage for the banks and other financial institutions to offer an improved banking ecosystem.
Robotic Process Automation
RPA- Robotic process automation is a form of process automation technology that utilizes software robots, to automate tasks. This tech trend is turning out to be increasingly popular in the financial sector, as it reduces costs and improves organizational efficiencies. The processes such as customer onboarding, security checks, account maintenance, and closing, credit card and mortgage processing, and much more that sum up the back-end office jobs are easily getting handled by RPA technology.
Over a period of time, 3D printing has fueled innovation, while reinforcing the rise for many industries. In the fintech sector specifically, 3D printing is considered to be a promising trend to prevent card-present fraud in the event of point-of-sale systems and ATMs. Now, banks are aggressively using 3D printing to design and produce ATM components, which helps in preventing credit card skimming. In 2021, 3D printing will play a vital role in combating fraud.
Biometric security system
For the fintech industry, it comes up as a Hobson’s choice to consider every possible security measure in its reach. And no prize guessing but biometrics is the optimal way to elevate the security system. Further, it ensures customers that their information is protected. In the coming years, this fintech trend is expected to grow massively, and the technology utilizing biometric data as fingerprint, face, iris, vein, voice, DNA, palm prints, hand geometry, signature, and several behavioral features, would be IN.
Let’s accept this fact, whether it is a shopping or banking app, users want to access comfort and convenience at its best. With technology advances, voice technology has evolved to a great extent to enhance customer service in the banking sector. This very set of technology is likely to offer a great support system to the fintech industry.
You can deny the fact that the giant ecosystem of the Blockchain technology has multiplied at full tilt. However, in the year 2021, this technology will lead the race in saving data fraud and identity theft cases, which yearly cost banks billions of dollars. With blockchain, an employee can share personal details and get them verified without revealing them. This shall make identity theft much harder when personal information is no longer as easy to find.
Food for thought
The ‘fintechization’ that has stirred our global economy for something better, will keep on evolving. As the financial services are everywhere: transportation apps, food-ordering apps, corporate membership accounts, the list goes on and on.
The FinTech trends are not slated to stop anytime soon, as the hunger for improved financial technologies is growing stronger than ever before.
Are you ready to UP your game?
At Techugo, we very well comprehend your requirements hence we empower fintech companies and their workforces with innovative app solutions and approaches.
Give a call to our experts and discuss the ways your business can benefit from the fintech revolution.5