You might feel overwhelmed and lost by the changing trends of the technological world. Sometimes all this confusion may give you a feeling that you are missing out on many new technologies. Fintech is one such technology. But there is nothing super new about fintech, and we assure you that you must have seen fintech in action in various ways but aren’t aware of it. Fintech software development has brought a lot of ease, comfort, and transparency to many financial operations, and its popularity graph is still growing exponentially.
Fintech always incorporates modern technologies and trends, making it even more potent. To up your fintech game, it is always a good idea to learn about all the latest trends in the fintech world. So this article will walk you through all the fintech trends you need to know. So let’s get started.
07 Fintech Trends Everyone in the Financial Industry Needs to Checkout
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Biometric Authentification
Do you know that more than 90% of users feel that security is the number one challenge when it comes to financial accounts? The most crucial and precious thing in the financial industry is data. And you can’t compromise it at any cost. Using passwords might be a way to protect your valuable data, but it comes with various setbacks. No one likes to remember long and complicated passwords, and resetting them is no fun job. Also, passwords are not fault-proof and can get comprised easily.
It is why most people are shifting to biometric authentification. Firstly, it is hassle-free and doesn’t expect you to remember long and complex passwords or combinations.
Also, it is far more secure than old conventional ways and cannot be compromised easily. So it is undoubtedly the most suitable option to ensure data security in the fintech industry.
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AI
Artificial intelligence has transformed many daily operations and has brought ease on so many levels in various fields. Similarly, AI is making a significant impact on the financial industry and readily becoming a crucial part of fintech.
Artificial intelligence can help you on so many levels in the financial industry, some of them are:
- Financial operations are usually complex and complicated. Using sophisticated and intelligent AI algorithms can declutter and automate many lengthy processes.
- Being complicated implies that financial operations are more prone to errors. Incorporating AI in your operations ensures error-free results.
- Also, AI helps in providing a better user experience. Features like chatbots etc. can help the users understand intricate financial processes easily.
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Blockchain
Blockchain is another emerging technology that is influencing the financial sector. Blockchain is a decentralized digital ledger that stores information from a transaction and saves it in a block and links it to the processing and preceding ones. It’s impossible to temper the information in the block. Using blockchain technology in fintech takes its transparency and security to a whole new level.
Blockchain ensures better data security and helps to constrain fraudsters. It can also keep cybercrimes at bay. So, in a nutshell, blockchain not only helps in making financial operations efficient but also more transparent and secure.
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Cloud Computing
The most significant advantage of cloud computing is that it provides better data management. And the financial sector runs all around data. So the more effectively you can manage it, the more efficient your financial strategy is.
Through cloud computing, the financial sector can get access to a better and more scalable data storage that implies improved computing power.
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Virtual Cards
Using Virtual cards is another trend to look out for. Virtual cards help you make payments through your bank card without using the physical cards instead, it uses the number of the card only. These cards are stored in your digital wallets on your smartphones.
virtual cards have simplified the whole payment process. Now all you need to do is to tap your phone, and your payment is done. Also, paying for something online is a game of mere seconds. Virtual cards also guarantee better security and pocket-friendliness than physical cards
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Voice Payments
Voice biometrics is another trending data security tool whose popularity is growing exponentially in fintech. Voice biometrics ensures a more secure transaction as it is commanded and authenticated by the user’s voice. You will be amazed to know that the use of voice payments is expected to grow three times by 2026.
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Open API
Open banking or open API allows the bank to share a client’s personal financial information with a third party. This third party could be a retail store, some service provider, loan lenders, insurance companies, etc. It is super advantageous for bank users as it opens doors to comfortable and uncomplicated transactions and online shopping. Open banking is transforming the financial industry by simplifying online shopping, loan deals, and other complicated stuff, and marketing them a process of merely a few seconds.
Final Words
Fintech software development can help streamline and automate all your financial operations, and grow your business in no time. But Fintech is a growing field with endless applications in hundreds of areas. So looking out for all the new trends and market directions is always a good idea. We hope that the trends discussed above will help you in making your financial strategies in some ways. Good luck.