The adoption of technology has transformed almost every industry, enabling business owners to get innovative digital solutions for their projects. Industries, like healthcare, education, or retail leverage the features of modern technology, and finance is no exception.
Financial services have evolved with innovative & emerging technologies to experience unique digital transformation. As a result, the banking industry has explicitly adopted FinTech solutions since people have started to rely more on smartphones.
With the help of modern technologies, financial services have started to meet user requirements while preventing any fraudulent activity. The advancement in FinTech has enabled businesses to invest in a financial app development company to meet their business goals.
From finance to SaaS services, FinTech has introduced several trends that will reshape the financial industry for betterment. In this blog, we are going to explore some of the top trends that every business owner should know to redefine their approaches.
Top FinTech Trends Reshaping the Future of Finance Industry
The future of FinTech services is bright and it will upfold many more opportunities with time. Overall, the FinTech app development cost will be expensive, but it will generate higher ROI for you.
Meanwhile, here is a list of some of the top trends of FinTech that will reshape the future of finance industry:
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Blockchain Technology
Blockchain is referred to as a distributed ledger system, enabling parties to record, share, synchronize, and distribute data across a user’s distributed network. Two individuals can now easily transact without the requirement of any authorized or intermediary.
Blockchain is the backbone of the financial sector as it has a high level of security, making every single financial transaction secured. Besides robust security, it enables a quick transaction with increased transparency, enables smart contracts, and more.
Following is a list of some of the top FinTech applications built on Blockchain technology:
- Digital identity
- Payment processing
- Trading and settlement
- Supply chain management
Artificial Intelligence and Machine Learning
Artificial intelligence and machine learning are other two modern technologies that will transform the FinTech industry by leveling up their offered products & services. Moreover, it focuses on delivering a custom-made user experience by learning about their behavioral patterns or preferences.
Brands, like Netflix, have seen massive growth and saved almost $1 billion by integrating machine learning algorithms to provide custom experiences with content recommendations.
Here are some of the key advantages of integrating AI and ML into the FinTech industry
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Fraud Detection
AI and ML are widely used in the FinTech industry to detect any unauthorized access or prevent fraudulent activity. Algorithms of machine learning have the potential to analyze any unusual pattern in financial data and detect anomalies that might lead to any fraud activity. This way, financial institutions can easily save a hefty amount of money from any fraud transactions.
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Chatbots
AI-powered chatbots have become widely popular in the finance industry as it automate repetitive or mundane tasks and deliver a smooth user experience. By integrating chatbots, FinTech mobile applications provide customers with quick responses, round the clock support, etc. It even offers personalized recommendations depending on the user’s financial data.
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Credit Scoring
The integration of AI and ML into the FinTech industry boosts the validity of credit scoring. Machine learning algorithms are used to evaluate a large amount of data in order to check whether the person is valid for the credit card or not. After analyzing the income, credit or employment history, Artificial Intelligence and Machine Learning provide the exact credit card score of any individual.
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Digital Banking
Fintech has tremendously revolutionized traditional banking services, and one of its crucial trends is Digital Banking. The term Digital Banking is also referred to as Internet or Online Banking, where next-gen technology is used to deliver various kinds of banking services to customers. All credit to the increasing usage of smartphones, the growth of cloud computing, or the evolution of other technologies, like face recognition or biometric authentication that have given rise to digital banking.
Digital banking provide users convenience, letting users access their accounts or do transactions at any point of time from anywhere. Furthermore, digital banking is cost-effective because there is no more need for physical banks, it does save a lot of time for users in performing minor activities like checking their accounts balance etc.
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Open Banking
Through open banking, users can easily access financial data on their own and avail of new services & products based on their requirements/preferences. It further allows them to leverage the best services available from their deals. Open banking lets financial institutions innovate and create unique products or services to meet the end user’s needs.
Open banking is a cost-effective solution as it allows to outsource certain features or functionalities to third-party. It also offers access to a wide range of services to third-party providers for delivering innovative services and products.
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Mobile Payments
Another FinTech trend is mobile payments, helping users to do any transaction through their smartphones. Again, mobile payments deliver users convenience as they can make payments from anywhere and at any time. Users/account holders no longer have to pay through traditional methods as they can now complete payment within seconds.
Additionally, mobile payments are secure because they use encryption and other security measures that protect the user’s personal information from data breaching. Besides this, most mobile payments are integrated with two-factor authentication (an extra security layer).
Concluding Words
Technology has transformed many aspects of digital tech solutions and spread across a wide range of industries. If we talk about the finance industry, it embraces futuristic technology, and with FinTech trends, more advancement is expected in the coming future.
So, stay up-to-date with the latest FinTech app development trends and thrive your business at an unprecedented rate.
