Financial Technology popularly known as Fintech has transpired to become a revolutionary field in the global industry. The expanding role of fintech has remarkably led to a new era of digital payments, reconstructing the way people do transactions. Multiple organizations which have implemented the fintech applications have become front-runners in diverse industries, transportation, including stock trading, smart city and many others.
The COVID-19 pandemic has brought incredible opportunities for fintech while it has also disrupted several businesses across industries. The industry has a substantial positive change as the pandemic supports contactless transactions. By the end of the year 2021, the world is expecting fintech will continue to transform the economy.
Here are the top fintech implementations or trends which has led to the growth of the fintech industry in 2021.
Digital banking is prominently revolutionizing the banking processes focused on serving clients exclusively through online platforms. These are also known as Neobanks, which are digital-only banks that function on real-time data analytics. This fintech-based banking model is extremely advantageous as it prevents people from visiting a physical bank, eases the use of tiresome paperwork and the queue time for banking operations.
A Biometric system takes security to the highest quality, it ensures that user's information is protected and cannot be accessed easily. With an increasing admiration towards mobile banking and other digital financial services, biometric security has become inevitable. The concept of biometrics technologies was introduced by fingerprint identification and facial recognition came to smartphones, and later on its implemented in areas where high-level security is required. It is also opening a whole new approach to biometrics industries and user's financial operating techniques.
Establishing partnerships are crucial for staying ahead in today's competitive market. Collaborating with the best companies focusing on a niche area remarkably saves time and resources, increases product time to market, and stimulates a business' learning curve. In the future, it is expected that financial organizations will form alliances with fintech firms, license and leverage their technologies to profit and expand their user base.
It was initially designed to specialize in cryptocurrencies, blockchain is a core technology in FinTech. As per the reports, a majority of financial organizations believe that this technology will have a massive impact on banking in the future. This technology has stimulated the development of discrete online peer-to-peer platforms allowing financial interactions to take place in a more redistributed manner.
Open banking brings fintech and banks together, allowing the data to network across organizations. It is linked with the Second Payment Services Directive. It also constrains the financial services providers to issue their data in a secure, standardized form for the information to be shared more easily between authorized organizations on online platforms. Just like the banks are seeking for fintech solutions, fintech is looking for community banks and credit unions. This demand will allow open banking partnerships that provide users with a precise consolidated view of their financial accounts.
With the rising fintech revolution in the financial service industry, financial institutes require a quality cybersecurity system. The possible threat posed by cybercriminals can create shared menace across the financial system that must be managed collectively. This is one area where fintech-based companies can make themselves cyber secure.
With these top trends in the fintech industry it is no surprise that the fintech is growing exponentially among users.