The Future Of Finance: FinTech Trends For 2021
We researched future trends in the financial industry and expect these trends to continue a year from now and inspire further improvements in how we treat money. With the strategy for the future, FinTech organizations have laid a solid foundation for growth with characteristics.
Blockchain: This disruptive innovation has become mainstream providing greater transparency and shortening the duration of financial transactions.
Next Generation Banks: 2021 marked the presence of digital-only financial intermediaries.
Mobile Apps: FinTech has conquered the mobile space by bringing in user-oriented financial apps.
Cyber Security- A strong trend towards developing sophisticated security systems to prevent cyber-attacks and data breaches.
Chatbots: Banks and other legal, financial institutions have taken notice and integrated virtual assistants into their apps.
Fintech Trends in 2021
Let’s take a look at financial services that can transform your fintech business.
- Disruptive Innovations in Payments
With digital wallets and contactless payment tools, paper money has paved the way for innovative payment solutions.
- Platforms as a Service
With these core areas being assigned to PaaS providers, other business processes in the financial sector such as budget planning, credit risk management, payment processing, billing, customer service are also being delegated.
- Blockchain Movement
Blockchain technology continues to improve the financial world. With the increasing number of Asian companies focused on cryptocurrency, the potential of blockchain is increasing day by day.
- Digital Assistants
Virtual assistants have already turned into bank call centers, helping customers get loans, calculate future income from savings accounts, provide charge information, and assist in non-traditional bank operations.
- FinTech Incubators
With the establishment of networks and programs such as Startupbootcamp, Barclays Accelerator, FinLab, and other projects, enthusiasts and creators worldwide have the chance to get up to speed.
- Total Automation
As Capgemini reports, “Intelligent Automation is a combination of continuous innovations in AI, Robotics (RPA) and Financial Business Process Automation.
- Business Alliances
In the past competing for customers, traditional banks and fintech startups are forging a partnership. A Start Path by Mastercard is a global project for fintech startups from different parts of the world.
- Advanced Credit Models
Incumbents apply basic socio-demographic data to define the credit ratings of potential borrowers. As a result, the test results come with a high probability of error which affects the credit risk of the entire loan portfolio.
- Cyber-Security
The last trend in the financial services trend set concerns cyber security. Although fintech offers financial players more opportunities, it also makes them more vulnerable to cyber attacks.
Conclusion
I hope now you are aware of FinTech Trends 2021 which will soon change the shape of the industry. If you’re considering financial application development or adjusting your corporate strategy to new moves, pay attention to the following:
- Changing business patterns to meet the constant changes of digital
- Leveraging AI and ML to Cut Operating Costs
- Applying Robotics to Rapidly Manage Customer Requests
- Becoming customer-oriented and providing omnichannel services
- Shedding light on cyber security
- Ensuring that your team’s level of expertise is meeting today’s demands