Top 7 FinTech Trends you should know in 2021
Fintech solutions are changing the way the financial industry operates. Today, more and more people are dependent on FinTech solutions than ever before.
The total worldwide investment in the FinTech industry is around $33.5 billion, which is growing continuously.
Today, FinTech technology is skyrocketing as financial players all over the world invest heavily in the growing trends in finance.
FinTech innovations can be seen everywhere. There are crypto trading platforms that lead the way in disruption of the financial markets. There are a plethora of FinTech solutions available in the industry.
From fintech app ideas for managing finances, budgeting to assessing investment risks, there are apps for everything in finance.
FinTech growth is at an all time high. The latest FinTech trends suggest that the industry is witnessing a significant shift in digital applications. COVID-19 has made FinTech growth imminent as companies move towards digital payment.This is evident from the following – the transaction value through FinTech in 2020 was $5.47 trillion, which was around $3 trillion in 2017.
What are the Trends in FinTech?
Digital payments, wealth management, and banking solutions were at the forefront of online transaction management.
Paypal, Venmo, and GooglePay are the major digital payment players that lead the way in FinTech. Today, FinTech technology trends include personal finance apps, investment management portals, online banking, and even online trading has become the latest trend in finance.
This article will highlight the 7 FinTech technology trends 2021 is going through. These trends are transforming the FinTech marketplace as we know it.
Even after the pandemic, FinTech apps will witness tremendous growth as people want convenience over visiting the organization physically to make the payment.
Let’s look at the trends in detail and how they are changing the digital financial landscape.
What are the Latest Trends in FinTech?
With contactless payment and online banking becoming standard, the FinTech firms are developing far and wide. No one realized it would get on so much, considering the security issues in the financial markets.
Nonetheless, FinTech companies easily conquered this challenge and built the most secure and powerful applications.
These new FinTech applications are presently converging with the patterns that are changing how the world glances at finance. Here are 7 latest FinTech technology trends that you should look out for in 2021:-
- Personal financial assistant
- Chatbots are becoming a popular choice among enterprises and FinTech start-ups. Today, multiple companies provide finance-based bots to consumers using Machine Learning and Artificial Intelligence. They act as digital assistants and offer a plethora of services to the users.
- AI powered chatbots help with account balances, payment history, standing instructions, making payments, and much more. It also provides details for the existing loans and information about new financial products. The chatbot offers personal financial advice based on the transaction history to help users learn more about their finances and how to better manage them.
- Digital-only banking
- While digital-only banking has been in talks for some time, the pandemic makes it evident that banks can run digitally. There’s a whole lot of debate among FinTech experts whether banks should move to a digital-only facility and save a lot of money by hiring human resources.
- Digital-only banking has reduced bank visits by over 30% in the last couple of years. Customers can make payments online, manage their loans, get real-time analytics, and much more. They can open new accounts, purchase financial products and invest through digital banking solutions. Customers can now skip the lines and waiting in queues for hours to get help with a single transaction.
- Big data in banking
- Banks and financial institutions collect massive amounts of customer data. Every form they fill has some form of data. Access to big data will help banks to provide valuable insights and personalized financial advice to their customers. The data also offers insights into the customers and allows banks to better serve them.
- Banks are now more inclined to suggest relevant products to their customers using FinTech app development. Big data enables them to understand the translation history of the customers and recommend products (both financial and non-financial) based on their spending. Personalized services are now at the core of increasing customer engagement.
- Digital currencies
- One of the biggest FinTech innovations are token, cryptocurrencies, and digital money. Bitcoin went up from $8000 to $50000 in 2021, and continues to grow. Decentralized internet is leading to a high usage of digital currencies as FinTech tools to manage them multiply in the market.
- Recent FinTech app ideas involve Non-Fungible Tokens (NFTs), which are indirectly a form of cryptocurrency that people can invest in. Digital currencies will increase in legibility all over the world as people start accepting it as a common means of payment.
- Contactless payments
- Needless to say, the pandemic has brought to light one of the biggest FinTech trends in India. Contact less payments are quickly becoming the new normal. There are chips and NFCs installed on cards and mobile devices that ensure payments are made without touching any system or person.
- Digital payments and wallets are now autonomous finance tools that are providing people ease of transactions. Today, such transactions are increasingly daily as people move from cash to digital payments.
- There are FinTech startups that are working in the field of contactless payments. Users can just scan their cards over the machine, and it shall deduct the payment directly from their bank accounts. In this regard, digital wallets are also becoming effective as users can only insert the phone number and pay for the products.
- Consumer retail
- FintTech app development in the consumer retail industry has been increasing for a while now. Big retailers hire a FinTech app development company and partner with financial institutions to provide products through their applications. The amalgamation of retail products with FinTech is something new to the world.
- People are getting discounts to pay their credit card bills via third-party apps. There are offers and discounts on entertainment, products, and services when made through specific banks. Such diverse FinTech solutions would drastically transform the FinTech industry as we see it today.
- Robotic Process Automation
- And last but not the least, the most useful and talked about of all – Robotic Process Automation (RPA). RPA has been valuable in the financial industry for a long time now. RPA technology is enabling the banks and financial institutions to delegate their mundane tasks to bots so that the staff can provide superior customer service.
- RPA is useful in delivering account-related information, showing application status, bank account details, and much more. There are both B2C, and B2B uses of RPA technology for FinTech digital solutions. Its utilization will only grow over the years to come.
Is FinTech on the Rise?
Studies showcase that the global FinTech adoption in 2020 was around 64%. FinTech is growing at a drastica speed as people move from paper and cash-based services to digital software.
Customers are willing to use digital channels because it is convenient, saves a lot of time, and even provides them value for money. FinTech software providers offer various offers that keep people hooked.
Governments across the world are promoting digitization as a way to encourage people to use FinTech software.
There are a number of apps in the market that provide different services. The world is swiftly moving to digital banking, online payments, and other channels.
Companies are utilizing FinTech app development services to build products that will satisfy the consumers. You can also do that – just hire BoTree Technologies, a leading FinTech app development company in the US and India.
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