7 FinTech Trends that will Transform the Financial Industry
The financial industry is rapidly merging with the FinTech industry. There are more digital finance products today than ever before. The total worldwide investment in the FinTech industry is around $33.5 billion, which is growing continuously. Today, FinTech trends skyrocket as companies innovate with financial products all over the world.
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. Some even say that this is the golden age of finance – one where FinTech digital solutions will pave the way for the industry to go entirely digital.
But it’s just the beginning. The latest FinTech trends suggest that the industry is witnessing a significant shift in digital applications. And COVID-19 has certainly driven fintech companies into the limelight. Digital payments, wealth management, and banking solutions were at the forefront of online transaction management.
This article will highlight the 7 FinTech trends 2021 will witness. We will focus on how these FinTech trends will transform the industry as we know it today. Even when the pandemic is over, FinTech apps are seeing promising growth. Let’s look at the trends in detail and how they are changing the digital financial landscape.
7 FinTech Trends to Watch Out for in 2021
With contactless payment and digital banking becoming mainstream, the FinTech industry is evolving like wildfire. Nobody knew it would catch on so much, considering the security issues in the financial sector. However, FinTech companies smoothly overcame this challenge and built some of the most valuable solutions.
These new FinTech solutions are now merging with the trends that are changing how the world looks at finance. Here are 7 latest FinTech trends that you should watch out for in 2021:
- Personal financial assistant
- Chatbots are becoming a popular choice among FinTech enterprises and startups. 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.
- A digital finance assistant provides 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 about whether banks should close their physical branches and operate through digital systems only.
- 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. 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
- Whether they are tokens, cryptocurrencies, or digital money, currencies are one of the biggest FinTech trends 2021 will witness. Bitcoin went from $8000 to straight-up $60,000. The rise in cryptocurrencies also enabled customers to consider it as a thing for long-term investment.
- 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.
- 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.
Conclusion: FinTech Industry Disruption is Going to be big
The financial sector has always been skeptical about adapting to new technologies due to security concerns. But the latest FinTech trends showcase that security has been taken care of – it’s the innovation that will dominate.
There are plenty of FinTech app ideas in the market. 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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