Top Fintech Trends for Online Shoppers in 2021
How many times have you visited your favorite online store this week? Are there items sitting in a cart somewhere on the cybersphere? Do you spend the majority of your money from your credit card online? If you answered yes to any of these questions, you’re in the majority of Americans who are changing the fintech sphere.
From online banking to the weekly grocery run, we’re all changing the way we conduct day-to-day tasks.
No matter how much time you spend shopping online, you should be aware of how your payment information and personal data is being handled online. Take a look at the top fintech trends that experts expect to take hold in 2021.
Online-Only Banks
The pandemic limited store hours for banks and financial institutions across the nation. This drove consumers to online banking in droves, and the convenience and low-cost access to services is keeping them there.
From searching for “title pawn near me” to applying for a car loan in just 5 minutes, it’s easier than ever to apply for financing using online banking solutions.
Online banking systems are putting more control in the hands of the consumer, and we’re seeing this trend of users autonomous across virtually every sphere or industry. In general, customers are more likely to trust brands that give them a certain amount of independence regarding their financial transactions.
Additionally, the growth of fintech in consumer banking is helping to keep customer data safe and out of the wrong hands.
Biometric Security Systems
Does your phone use your fingerprint to unlock the home screen? This is just one example of the use of mainstream biometrics for data security.
More brands than ever are using face-scanning, voice, and fingerprint technology as a facet of account authentication. Rather than depending on codes and passwords, this method is much more difficult to crack – especially when combined with additional metrics.
The use of biometric scanning not only makes the transaction more secure, but it helps both consumers and institutions save time in the long run.
Now that mobile devices are coming equipped with biometric capabilities, online brands and financial institutions are jumping on the trend to keep their data safe and away from prying eyes.
AI and Machine Learning
Artificial intelligence is everywhere today, from our refrigerators to our vacuum cleaners. This tool is helping our mobile devices to learn and adapt to our daily behaviors like never before.
As a result, fintech is applying the same systems to learn about user habits and online risks in a new way.
Banks are relying on AI systems to cut costs by reducing redundancies and automating tasks across their organizations. This technology can help applicable institutions to reduce spending by more than 22% by the year 2030.
Blockchain Computing
The same technology that is being used for cryptocurrencies can be applied to transactions involving fiat currency, as well. Banks, retailers, and online systems are employing blockchain computing to keep user information safe in a new and innovative format.
Blockchain technology is a decentralized way to “encrypt” or store and send data online. This method uses a nearly infinite amount of combinations based on a simple structure of calculation between each “block” of data.
Just like cryptocurrencies like Bitcoin and Litecoin use this technology to make these online assets more trustworthy and secure, banks and financial institutions are using the blockchain to increase customer loyalty while reducing cybersecurity risk.
Fintech is changing the way we interact with our favorite brands, lenders, and financial institutions online.
From buying goods and services to taking out a credit card, these cloud-based and network systems are protecting user and proprietary data behind the scenes.
As we head into 2021, keep an eye out for these fintech trends while you’re browsing the web to make purchases, increasing brand awareness, and building your consumer habits remotely.
