Recent Trends Fuelling Fintech Services

Fintech technologies that are currently developing could profoundly change the ways finances are managed.

FREMONT, CA: Trends in the global FinTech market emerge swiftly and have the power to alter many facets of the financial sector. Businesses involved in financial technology have expanded significantly in recent years. Globally, around 26,000 FinTech companies that employ close to 500,000 people are in operation. At least one atypical provider's money service is used by one-third of all banking customers.

Some of the top FinTech trends being encouraged by FinTech app development services:

• Neobanks - It operates exclusively online and offers a wide range of financial services   designed for mobile users. Neobanks have a better user experience, and customers can open accounts and perform transactions with just a few taps on their smartphones.

• Use of the Internet of Things (IoT) - IoT sensors are used by Fintech companies to gather data and improve customer experience. Sensors are used in ATMs to determine waiting times, and contactless sensors are used in micro-payment activities, allowing users to make small payments without entering their credit card details.

• Blockchain technology - It is the backbone of digital currencies such as Bitcoin, and has numerous potential applications beyond cryptocurrency. Non-fungible tokens (NFTs) and decentralised finance (DeFi) are just a few examples of how blockchain can transform fintech.

• Virtual reality (VR) and Augmented reality (AR) -  They offer an immersive experience for investors to make financial decisions and track real-time market fluctuations. Although VR has limited practical applications at present, businesses are already experimenting with the technology to realise its potential.

• Robotic Process Automation (RPA) - RPA automates repetitive, ordinary tasks that humans previously performed, freeing up resources and increasing accuracy. RPA is a great approach to automate back-office tasks, allowing workers to focus on more creative and value-adding activities and reducing operational costs for fintech organisations.

• Voice-enabled payments - Customers can hear their current balance while making payments or money transfers using voice-enabled digital assistants like Siri, Google Assistant, or Amazon Alexa on their mobile devices. Online cards, or virtual cards, are also gaining popularity, allowing consumers to use virtual cards for online transactions irrespective of the necessity for physical cards.

• Biometric security - With technologies like fingerprint scanners, speech analysis, and facial recognition software used for authentication and access control biometric security is becoming more prevalent in the fintech industry.

• Machine learning (ML) and Artificial intelligence (AI) - AI-powered robo-advisors offering customised investment portfolios based on big data analysis and AI technology. Machine learning is used for risk analysis, prediction, data management, automation, and fraud detection in finance.

• Open banking - Open Banking allows banks to link external APIs to their systems, enabling third-party providers to access customer data and create new financial services. It creates a more competitive market and provides customers with more options and better services.

With so much reliance on technology, changes will inevitably occur quickly and frequently. The banking sector and its customers must hold on for the ride as the FinTech revolution emerges as the newest disruptive force. Until this technology advances rapidly enough to gain widespread acceptance, it is likely to take some time.