Seven key trends shaping the future of the FinTech Industry

Technological shifts are changing the way industries work. Practically every industry has now adopted modern technology for its operations. Today, we will see how technology is shaping the FinTech industry.

FinTech means finance and technology, as it makes financial services faster and more secure. In short, it is an integration of technology into a process of financial service to automate it.

FinTech works by simplifying financial processes for businesses and consumers. Besides enabling seamless digital transactions, it can make banking and payments efficient.

 Today, FinTech is revolutionizing the way we can use financial services. Let’s dive deep and look at Seven key trends shaping the future of the FinTech industry.

1. Blockchain

 Blockchain technology is revamping the FinTech sector in different ways. The decentralized and tamper-resistant feature ensures complete transparency and security in transactions.

Plus, it eliminates the third-party need, thereby reducing operational cost and time. Ideally, it promises to bring accuracy and efficiency to the investment process.

Blockchain technology helps banks to monitor funds and handle transactions without effort. With the technology, banks can use real-time transaction settlement.

De-fi or decentralized finance in blockchain technology can usher new opportunities, distributing the already established structures and value chains. And as financial policies further change, Di-fi will massively expand. 

2. Artificial Intelligence

According to experts, artificial intelligence can generate one trillion dollars of added value to the global finance and banking industry. Most banks look to adopt AI technology to help them prepare for uncertainty and expand their reach.

Besides, AI-powered personalization is one of the most vital FinTech trends. From addressing customer queries in real-time and intelligent chatbots, AI can strategically provide financial guidance to banks and financial institutions.

Also, as AI evolves, there will be a chance of hyper-personalization in FintTech, which can be a force behind the financial evolution. The best part is integrating with AI can improve customer satisfaction.

3. No Code Low Code

 Are you aware of no-code low-code platforms? These platforms are showing a paradigm shift in the app development process. Confused? Well, these solutions help individuals with tech backgrounds create applications without coding knowledge. 

In addition, these platforms can help create different programs using the drag-and-drop feature compared to standard coding practices. No code low code technology can democratize change, enabling the finance companies to respond to market needs.

 However, while it may simplify the process, complex applications may still require coding. The best part is that these platforms help to bridge the gap between tech and non-tech teams, fostering collaboration and accelerating the business pace.

4. IoT 

IoT’s influence on FinTech promises financial innovation. IoT devices, including smartwatches and voice-activated assistants, are changing how payments are made. 

These devices store payment information, enabling customers to make contactless transactions. Also, IoT coupled with mobile devices can extend financial services to different locations. How?

People staying in remote areas with limited connectivity can access services through smartphones. Mobile banking applications can give access to financial services to promote financial inclusion. In addition, IoT sensors in ATM management ensure security and control. The Future of Internet of Things ( IOT) is phenomenal as IoT is set to redefine the industry by enhancing its security, automation & personalization. 

5. Cloud Computing 

Cloud computing in FinTech has refined how financial services are offered to clients. One of the prime examples of cloud computing in FinTech is that it offers unparalleled scalability and flexibility.

Cloud computing can give companies time to scale their operations based on market fluctuations. In addition, it allows FinTech companies to avoid substantial upfront expenses, making it cost-effective.

Besides compliance, security is significant in the financial sector. Cloud computing offers state-of-art security measures that help FinTech companies to build robust security infrastructure. As the reach is global, FinTech companies can expand their operations globally.

6. RegTech Apps

 Another key trend shaping the FinTech industry is the evolution of RegTech apps. Have you heard about it before? Well, these applications are expanding to address the complex regulatory demands of the financial sector.

By leveraging technologies like data analytics and artificial intelligence, these applications help to streamline the compliance process, thereby reducing the cost.

In addition, the technology offers risk assessment and real-time monitoring that helps to adopt changes in the field. The best part is that RegTech app adoption ensures financial companies complete ease. They can navigate different challenges with the best technology. However, the consideration is to keep pace with integration and data security.

7. Hyper Automation

 The use of automation in FinTech has led to several changes. However, it’s time to move one step ahead with hyper-automation. Hyper-automation can replace manual tasks in the banks.

Technologies like deep learning, AI, and robotic process automation can enhance work automation capabilities and improve decision-making. For instance, AI chatbots in banks can help with customer service processes, and RPA in banks makes it easy to deploy digital transformation, extending reach.

Replacing manual work with automation improves efficiency and reduces human errors. These technologies can penetrate more deeply into the FinTech sector to reduce paperwork and improve decision-making.

The change is constant, 

Most banks and financial institutions are adopting digital banking services. The above-listed technologies will play a role in – how banks can use these services. Besides, integrating with the technologies will offer innovative services in this digital age and . 

The possibilities for growth are immense but in the right direction. In the future, traditional financial institutions can bring a considerable change in business operations. But in the end, it’s the customer who will benefit the most. The competitive landscape of FinTech is about to change, so are you part of this change?

Author’s Bio : 

Harikrishna Kundariya, a marketer, developer, IoT, Cloud & AWS savvy, co-founder, Director of eSparkBiz Technologies. His 12+ years of experience enables him to provide digital solutions to new start-ups based on IoT and SaaS applications.