Fintech Industry – Dominant Trends and Their Contribution to the Industry
After the pandemic outbreak, several financial activities started to take place online. Online brokerages gained momentum; several people switched to online banking, and UPI payments skyrocketed. In 2021, this shift is expected to get bigger, and great opportunities are expected to emerge in the FinTech industry. The following Fintech trends will take the lead in the financial services industry this year.
Microservices are independent applications that are developed, positioned, and maintained separately to fulfill specific business requirements. Common issues, such as speed and scalability, can be solved with the help of microservices while supporting continuous testing and delivery. Below are some benefits microservices offer to businesses:
- Businesses can be more responsive and deft while addressing customers’ needs.
- Products that meet the specific needs of people can be marketed faster.
- They can provide a seamless experience across multiple channels, such as point-of-sale systems, mobile applications, Internet of Things devices, social media, virtual reality, and virtual assistants.
Blockchain technology has the potential to restructure the financial services industry. It cuts out intermediaries, operates outside the centralized regulatory financial structures, and effectively democratizes finance, enhancing transparency and security.
It facilitates transactions in the form of smart contracts and tokens, which cut out intermediaries and allow individuals to carry out transactions securely and transparently.
Its impact on the financial services industry is so profound that 48% of banking representatives believe that blockchain will significantly impact the industry in 2021 and years to come.
Artificial Intelligence and Machine Learning
Artificial Intelligence is one of the most significant technologies that financial institutions are looking to incorporate in 2021. According to research findings, AI will bring down 22% of the bank’s operational expenses by 2030. That said, below are some benefits it offers to the industry:
- Financial Institutions can put big data to effective use in monitoring customer behavior.
- Big data can be used to detect anomalies and opportunities.
- Companies can use Artificial Intelligence to provide highly personalized, customized services to customers.
Using big data, algorithms, and machine learning, predictive analytics can help financial institutions in the following ways:
- To combat fraud.
- Improve customer experiences.
- Improve operational processes.
- Create better marketing strategies and brand awareness.
Robotic Process Automation
Robotic Process Automation can automate backend office processes like customer onboarding, credit card and mortgage processing, security checks, among other processes. This is helping the financial services businesses in the following ways:
- Improving organizational efficiencies.
- Faster and efficient task completion.
- Better customer services.
The new normal created by the pandemic has accelerated the adoption of the technology, which is helping in the future of fintech create a more efficient and stable operating environment and serve customers in a better way.