Key Emerging Trends in Fintech

The Financial world is changing so much that it’s difficult to stay up with the latest trends that are shaping fintech. Every one of us has heard about Artificial Intelligence (AI) or blockchain. Actually, we’ve heard about these technologies so much that they have become buzzwords. Driving a global business entity, one quickly understands the fundamental significance of fintech services to the developing world. Fintechs have a unique capability to extend financial inclusion, improve the day-to-day lives of people, and spike growth. While the coronavirus might have forced us to adjust the way we operate, it hasn’t halted either our progress or our commitment to this cause, which is on a higher priority than ever given the current circumstances.

Fintech isn’t immune to the effect of coronavirus. In reality, it was effectively borne out of the financial crisis. The worldwide economic collapse challenged us to think of new methods to run our financial systems, at both a macro and micro level.

Over the years the sector has indicated its agility and capability to recognize areas that require new solutions and technologies, as well as develop a totally new way of managing the interests of consumers. Fintech has been successful in evolving to develop a better future of finance, and we stay confident that our industry will utilize this challenging time as an opportunity to form the next successful wave in the financial industry.

Let us now have a look at the key emerging trends in fintech,

Risk Simulation

Risk Simulation is turning out to be one of the important global fintech trends during the time of crisis. The present pandemic has highlighted the requirement for more risk simulation to optimize our responses to crises. Ranging from individual business resilience to contingency planning, there are numerous domains that need immediate attention.

Simulation can future-proof various crucial areas such as supply-chain, fraud, money laundering or compliant trading. The capability to model risk and therefore manage it will allow for optimal decision making in order to de-risk our future.

Hyper-Personalization in fintech services

For many years, marketing experts embraced the benefits of personalization to attract customers and keep them loyal. Presently, thanks to big data and AI that helps us process, store, and drive insights from the data, hyper-personalization is possible on an unprecedented scale. Financial institutions now have information about the behavior and social and browsing history of their customers. AI encourages real-time omnichannel integration of these insights to deliver a personalized one-to-one marketing experience for their customers at the time when the data is most relevant and useful.

Digital asset capital markets

Blockchain technology has promised numerous things, but a global capital market powered by digital assets is one of the most exciting.

The arrival of tokenisation showed significant potential for the expansion of businesses from cryptocurrencies into the broader digital asset space, drawing the attention of the world of institutional financial services.

Some of the traditional exchanges are taking an increased interest in the token-based capital market, often driven by increased purchase-side client demand.

Ranging from the rise of regulated token exchanges and CSDs to digital custody players as well as the crucial area of compliance with AML risk monitoring solutions across the digital asset space, the ecosystem is developing each day.

Conversational Platforms

As per Gartner, by 2020, chatbots will communicate with the customers of 85% of banks and businesses. By eliminating human involvement in these trades, productivity, and speed improve. In fact, according to a report, financial chatbots save over four minutes on every interaction with customers. This is a booming zone because of the progress made in natural language processing (NPL) and speech generation. Customers of financial firms have come to depend on conversational interfaces to provide 24/7 service, instant responses to queries, and quick complaint resolution to improve personal banking significantly. Conversational interfaces also give a simple and economical way for organizations in the financial sector to receive customer feedback. COVID-19 outbreak has made conversational platforms more important for businesses.

Mobile Payments

One of the latest big things in fintech is the growth of the mobile payments industry and contactless payment during coronavirus pandemic has also positively impacted its growth. Users want payments methods to be instant, invisible, and free (IIF). Mobile payment innovations may even get rid of our traditional wallets as global consumers are less reliant on cash. Apple, Google, and Alibaba already have their own payment platforms and continue to roll out new features like inducing fingerprint, biometric access control, and face recognition. Many mobile payment platforms are building programs and offers on the basis of the purchase history of the users.

Conclusion

Fintech is a rapidly growing industry that will continue being developed and tweaked in 2020 to be more secure and satisfy customers. Various innovations such as payment innovations and mobile wallets break the borders financially and enable users to make global payments.