The Fintech Industry’s Latest Trends and What to Look Out For
The fintech industry has grown rapidly during the previous ten years (the industry that creates programs and technologies that support banking and financial services companies). Financial services have fully embraced technology in recent years. Most financial institutions have fully integrated it into their operations.
Fintech is everywhere, including data management, administration, and customer service. Big banks throughout the planet have welcomed and adopted fintech and have even started to lead the change and set norms for new financial service associations to follow.
In 2021, there is a great expectation that smaller institutions will provide and perfect existing technologies to keep up with the larger institutions. Here are some of the most recent fintech developments to keep an eye on in 2021 and beyond.
Artificial intelligence (AI) and robotics
Automation is the latest trend right now. And it’s largely been applied for customer service applications so far. Investments, compliance, risk management, analytics, basic accounting, mortgage lending, loan and credit card processing, logistics, and supply chain management will all benefit from it. Customers can now expect smoother and more precise services that are tailored to their specific requirements.
More financial service organizations are using chatbots and artificial intelligence to further develop client experiences and automate processes.
Freeing up people to provide better and more customized experiences. Chatbots communicate with clients in real-time, providing them with the information they require when they require it, resulting in high customer satisfaction.
AI has aided in the advancement of voice recognition, which is the ability of a software program to match a person’s identification to their speech. Banks have been developing voice recognition for several years as smart home gadgets raise demand for and use of hands-free banking and voice search. Customer services will heavily use voice recognition in 2021.
Adapt to millennials’ needs
Financial institutions have realized that millennials’ financial goals are significantly different from previous generations in the last ten years. They are more likely to look for rent-to-own, mortgage, and debt management alternatives than they are to look for business loans. To please the millennials at the forefront of banking, institutions are more inclined to hire modern technologies.
Software-as-a-service cloud services
Cloud services are already being used by financial organizations for human resources, customer relationship management (CRM) platforms, and data storage. In 2021, there will be a move toward adopting the services for cross-border data exchanges, billings, payments. And loan management to provide faster and more seamless services.
Better online banking services
The vast majority of banking customers would rather use online banking than wait in line at the bank. As a result, banks will most likely provide many ways to access their online banking platform. Many banks will have to implement the technology to improve online identity management, speed up cross-border payments. And commercial process transactions are faster since some clients prefer blockchain-based sharing economies.
Security and protection
While the mentioned changes improve service quality and speed, they also raise security issues and cyber-crime risks. At the same time, AI has already assisted in fraud prevention and the reduction of identity theft. Cyber security will be a major worry as technology advances bring new risks. Financial institutions will be obliged to spend a significant amount of money on cyber security by 2021.
These are just a few trends to expect in 2021, with many more to come in 2022 and beyond as technology continues to improve the banking and financial services industry.