Every generation evolves through changes. Some of them are social, economic, domestic, and throughout history, these changes have happened through either inventions, events or simply due to nature. Two world wars caused much turmoil yet there was much advancement that happened solely due to World wars like Formation of European Union etc. Similarly, historical pandemic diseases gave shifted focus of mankind toward healthcare industry elevation. Therefore, there is always a better side of change.
However, in our current times, matters are a bit different than history. The speed of change in our times is quite unseen and inexperienced. The pace and adoption of new things and ways are quite high. Millennials have seen the emergence and obsoleting of mobile phones in the span of 10 to 15 years. Our pre-conceived notions get challenged regularly, and our definition of work is evolving at a rapid pace. Similarly, the way we live our lives and do our work is constantly changing. And the majority of the credit goes to technology.
The technology sector has evolved the most in recent times. It didn’t grow only in its depth as a sector but also pushed and boasted the other sectors too. Technology now is not only a sector but a vehicle of progress for almost every area of our lives. Modern healthcare is now able to diagnose and cure complex diseases through advance technological equipment and research through sophisticated data sciences. Accounting and Financial systems became more extensive and intelligent through cloud computing and artificial intelligence.
The above-stated examples are only two peas in a big pod. However, one of the most revolutionary shifts that the world has seen is in the financial and banking sector. This amalgamation of finance and technology is known as FinTech. According to many big shots in the financial sector, the financial deals through such technological phenomena are increasing day by day and attract billions of dollars altogether. Many conventional ways of banking and financing are changing. The banking sector and financing companies can provide such products and services, which were mere fiction through conventional practices.
Let’s take a look at some of the trends emerging due to the FinTech around the world:
1. Only Digital Banking
We have already seen the majority of our required services like funds transfer, credit requests, online payments, etc., can be done with few simple clicks and there is no need to visit any bank branch for them. Modern technology has enabled such a possibility for a bank to exist but without any brick and mortar facility. The financial world is already adapting to such mode of operations as there are lesser costs, lesser paperwork to deal with, customer preference and convenience. Digital Banking is adding more pie in the overall pie-size and also eating some from the traditional banks too as we will be seeing a significant drop of 36% in several customer visits to bank branches in just 5-6 years.
However, there are some bumps on the road ahead in the form of Ponzi schemes and frauds over the internet in the name of digital banking; similarly, some customers are reluctant to adopt and trust such mode of banking as it lacks human interaction and connection which some humans crave for. But with the future road ahead, these are expected to be overcome through collaboration among traditional and digital banking together.
2. The Emergence Of Artificial Intelligence
Artificial Intelligence, as a phenomenon itself, has outpaced the development of human intelligence. Financial Sector has jumped into this ship earlier as there is and was massive potential and synergies possible. AI adaption has enabled the banking sector to deal with cybercrimes and fraudulent threats more effectively. The introduction of chatbots and smarter systems to provide improved customer services is just the pinnacle of AI integration and possibilities.
3. Innovation In Payment Modes And Methods
One of the basic wonders fintech is providing to its beneficiaries is the introduction and emergence of various innovative payment methods. With the rise in the trends of online shopping and freelancing economy, people are already concerned about their money over the internet. Fintech Revolution is solving this problem with safe, secure, fast and reliable payment modes to the consumers. Along with AI and machine learning, it is improving the security aspect already. There are many new payment methods available to laymen consumers like mobile payments, mobile wallets, contactless payments, etc. Mobile wallets are already replacing physical cash payments and wallets in normal day trading or domestic chores.
4. Regulation Of Fintech Industry
The banking and financial sector are one of the most scrutinized and regulated industries in the world, as it involves the hard-earned of people. The emergence of fintech and related technologies has disrupted conventional ways, and there is no template available already to regulate and formalize fintech-related practices. This is one of the prime reasons that many countries and governments are denying to accept the utility of blockchain and cryptocurrencies.
For the greater good and across the nation's adaption, the regulatory bodies are working to regulate and formalize such innovative practices, and every country is taking out leaf as per their existing systems, convenience and financial schemes already in place.
5. Hyper-Personalization For Customers
In this attention-deficit economy, providing relevant and productive services to the customer is the name of the game. With extensive data mining and comprehensive analysis of it, it is possible to provide more than just run of the mill products and services to the current and potential customers. The insights generated through big data and AI, customers’ behavior, purchasing patterns, social understanding, browsing history, etc., can be tapped to design customer acquisition and retention strategies in fintech. AI can also facilitate multi-channel marketing strategies to deliver a personalized experience to customers. And on the security side of personalization, there is of course id verification to provide extra levels of financial protection.
Stay Educated On Top Fintech Trends Today
As we have seen, this is just the start of innovative drives, and as more and more countries jump into this bandwagon of transformation, we will see the wide implementation of such possibilities. And with the passage of time and increasing human talent in a specialized field, we can expect to overcome challenges that pertain to the fintech industry already, which would boost the development and innovation in this already fast-moving phenomenon.
