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COVID-19 pandemic has adversely affected every aspect of our lives. It has forced us to take unusual steps such as social distancing and lockdowns that have caused massive losses to almost every business sector.
The digital FinTech solutions have smoothened the global business processes. On top of that, the accuracy and availability of data have also improved.
What are the FinTech trends that we are going to witness in the future?
The mixture of digital FinTech solutions, strict legal compliances, investor capital, technological advancements, and the globalization of financial services will revolutionize the FinTech sector in the future. But how far this revolution of FinTech will go? For answering this question, you need to look at some innovative Fintech trends:
1. Cryptocurrency
There have been talks about a crypto revolution for many years and new cryptocurrencies are expected in the future. Banks, credit card companies, and loan providers are updating their business models to adopt the cryptocurrencies in their transactions.
Several banks are going to introduce their cryptocurrencies into the blockchain system. Cryptocurrencies will give them full control over their monetary policies and financial regulation practices.
By using cryptocurrencies, cross border payments will become cheaper, faster, and safer. Financial institutions can also save on costs while moving funds more efficiently.
2. Voice Technology
Banks have also started using voice technologies for their daily transactions. Now, customers are experiencing complete hands-free banking.
Although banks need to do something more in this area, integrations and updates are coming by quickly – and this is another trend to monitor. Financial institutions are looking to integrate voice tech devices to offer its customers the ability to complete their transactions. It can also help the banks to create an omnichannel customer experience.
3. Contactless payment solutions
Retailers are working to bring back their customers to stores. With the usage of facemasks, sanitizers, and social distancing measures, retailers are investing in contactless payment methods for avoiding touch.
Contactless Payments solutions are a secure method of making payments with multiple payment instruments like debit card, credit card, or another payment device equipped with radio frequency identification (RFID) and near-field communication (NFC) technology for making purchases. Users can make payments by tapping a payment card or other device near a point-of-sale terminal equipped with contactless payment technology. It is also referred to as the tap-and-go payment method.
Google Pay, Apple Pay, Paypal, Square Wallet, etc., are some of the most popular contactless solutions.
4. Branchless Banking
The Internet and smartphones have allowed the banks to offer their services in the times of the COVID-19 pandemic. This innovative combination is known as branchless banking or agency banking. Product availability, risk management, improvement in financial inclusion, etc., are the main reasons for the growing popularity of agency banking solutions.
Branchless banking allows banks to expand their services in remote areas. It also helps the agents to earn some extra income. The unbanked customers can easily access the nearby financial institutions.
It will be interesting to see how branchless banking solutions will reshape the global banking industry soon.
5. Blockchain
Blockchain is disrupting the FinTech industry. It has so far inspired the creation of various P2P (peer to peer) platforms that enable monetary interactions within two or more devices.
Blockchain verifies every part of the recorded transaction. Thus, there is a low risk of fraud in blockchain technology, as it is difficult to change the recorded transactions.
This technology also saves your money as it can do the financial transactions without any human interference. Thus, there will be no need for a third-party processor.
6. Increased use of digital wallets
Due to its speedy transaction facility, digital wallets have become the widespread element of the FinTech Industry. The mobile wallets allow your users to store the details of credit and debit cards. The users can use their wallet app to complete their purchase of the transaction instead of using a physical card.
Mobile wallets can be safer than using an actual card as the payments made by them are encrypted. Since it can decrease the risk of fraud, mobile wallets are gradually becoming popular in the finance world.
7. Enhanced cybersecurity
Digitization is vulnerable to identity theft, fraud, espionage, and money laundering. Cyber-threats have created a massive impact on the FinTech industry.
After using multiple security measures, it is still not clear that which security framework works best for FinTechs. The volume of industry innovations has made it difficult for FinTechs to direct their resources properly, along with facilitating their commercial partnerships.
Wrapping Up | Tech trends
Fintech is an ever-growing phenomenon, and the financial industry is only going to keep benefiting from it. You are going to see many of these trends developing and making their way toward a new normal.
You can build an effective digital FinTech software solution to curb the benefits of the FinTech revolution. You can extend software development team or hire an Offshore Software Team for building an efficient FinTech app for your business. Keep following this space for more such insights.