FinTech is an evolving development with a high potential to disrupt the financial industry. The rapid growth of financial technology organizations in recent years is astonishing. There are thousands of FinTech companies operating globally. Together, they provide employment to hundreds of thousands of people spread internationally. FinTech has revolutionized multiple sectors from consultancy services to payments, and this post details four trends you should know.
What Is FinTech?
Financial technology (FinTech) is used to describe new technology that automates and improves the delivery and use of financial services.Financial technology helps companies and consumers to manage their financial processes, lives, and operations. FinTech utilizes special softwares and algorithms used in smartphones and computers. Here are the latest trends that propel the FinTech revolution.
A blockchain is an advanced database mechanism that facilitates transparent information in a business network. The database is utilized to store data in blocks that are linked together as a chain. The blockchain data is consistent, however, you can’t modify or delete the chain without consensus from the network. You can use blockchain technology to build an immutable ledger to track accounts, orders, payments, and multiple transactions.
Artificial Intelligence (AI)
The revenue of banks in different countries exceeds the income of some nations in the world. That is why these high-revenue financial institutions are embracing artificial intelligence. AI helps in analyzing customer behaviors in the banking industry. That is why banks personalize communication with their customers, advice, and give personalized offers and AI-enabled payments.
AI is also effective against financial fraud, money laundering, and cybercrime. Artificial intelligence automates complicated processes, customer convenience, and faster transactions. It also identifies data breaches, hacked data, and provides security and privacy to client information.
Some banks only exist virtually. Their customers are relieved from visiting brick-and-mortar institutions to open an account or get a new card. These banks offer convenient tools for:
Digital-only banking also offers payment services using cryptocurrencies.
Smart contracts facilitate parties in signing an agreement using digital signatures encoded in a language that computers understand. Smart contracts are guaranteed to be predictable and executed accurately.
FinTech Super Apps
Super apps are commercial apps that provide services beyond the ordinary. These days, banking super apps are accessible to consumers. They provide users with a full experience of financial services. For the FinTech industry, super apps mean trading in crypto and possibly managing different savings accounts with different currencies and payment tools across borders.
Peer-to-Peer Finance and Credit
Several FinTech companies provide peer-to-peer credit and financial services. P2P finance is now more convenient and it doesn’t require identification or a long application process. Small entrepreneurs can apply for P2P credit to develop their businesses. For example, you can apply for Motorcycle title loans. An organization can apply for loans from non-financial companies and credit unions. The credit history of a member determines their creditworthiness.
FinTech is a rapidly evolving sector with new trends coming up every year. Uncovering these four trends gives you new insight and ensures that you stay ahead of your competition. You are now able to make educated business decisions for the growth of your organization in the future.