The demand for innovation continues to increase and as people become more comfortable with fintech apps, you can expect to see the industry’s rapid evolution. Over the next few years, key technologies including artificial intelligence, blockchain, and mapping software will drive the fintech business model and shape its competitive landscape.
Artificial intelligence and machine learning allow fintechs to use management and risk assessment tools, data management, and forecasting to add more intuitive features to their products. These features make fintech apps easier and more convenient for customers to use.
The only requirement for something to be an IoT device is a way to connect to the internet and transfer information from one place to another. This technology can be used to create connected credit and debit cards that interact with no processing time.
There are several types to look out for, including peer-to-peer, QR code, and Near Field Communication) NFC payments.
More Focus on Financial Literacy
Financial literacy has never been considered as important as it is today. Traditionally, very few schools offer any financial literacy education. However, fintech startups are aware of the problem and choosing to take action.
Over the last five years, almost $535 million has been invested in 89 deals. Fintechs provide savings platforms, mostly for children and young people.
A range of apps are available including allowance apps that allow parents to manage allowances and where children earn rewards for tasks such as getting good grades and completing chores.
How great would it be if you could pay your bills just by using your voice? It’s now possible to ask Alexa or another digital assistant thanks to voice-enabled technology.
Using a smartphone or digital assistant, people can now use their voice to interact with the digital world.
More Payroll Options
Several emerging payroll methods could make life much easier for the millions of workers who live paycheck to paycheck. Workers will get paid in real time using one of the following methods:
On-demand pay: This payment system allows employees to receive their wages as they earn them
Salary advances: Under this system, employers permit employees to take a portion of their salary before payday.
Crypto payroll: This method enables employers to pay workers using a variety of cryptocurrencies.
The Internet of Things is changing how global fintech companies look at and understand financial information. Sensors and other devices are now being used to monitor ATMs and keep track of micro-payments such as monthly subscriptions. In addition, they can encourage contactless payments.
Robotic Process Automation (RPA)
RPA is used to automate repetitive tasks without the help of humans. RPA takes over all the tedious tasks that might help up productivity and gives humans more time for other activities. In the financial services industry, there are plenty of tedious tasks, so RPA is quickly being adopted across the industry.
Mobile Payments and Digital Banking Services
Fintech companies based in Southeast Asia already make it easy for people to manage their finances. Moving forward, they are now making it even easier to spend and collect funds.
Digital banking services have been around for a decade, but fintechs are developing new ways to enhance what is already available.
A good example is neobanks (digital-only banks). They can operate online only, without the need for a brick-and-mortar location. Using fintech apps, customers can open an account, transfer funds, open a credit account, buy crypto, get a loan, and much more.
The fintech trends mentioned above are just the tip of the iceberg. However, they do highlight the need for financial institutions to continue to invest in new technology and innovations in the years ahead. Fintech is breaking down the barriers to financial services and at the same time, innovating cyber security and fraud prevention tools.