People have suffered a lot from the traditional banking system. They had to wait in line to cash their cheques or spend days waiting to receive the amount in their bank accounts.
Times have changed now and financial technology or fintech has grown apace. From the world’s biggest stock exchange in the world in Wall Street to the hub of global innovation in Silicon Valley California, fintech companies are everywhere now.
Surprisingly banks which were thought to be the biggest competitors of fintech are also using fintech to provide personalized solutions to customers such as online banking.
This article is dedicated to fintech. We’re going to discuss some fintech trends that may surprise you. So, we’ll stop beating around the bush and get started straight away.
Artificial Intelligence and Machine Learning
Companies, E-Commerce, and Fintech
Fintech Devices
The Collaboration of Crypto and Fintech
Open Banking in Fintech
Artificial Intelligence and Machine Learning:
Fintech combined with artificial intelligence (AI) and machine learning (ML) can help in the following ways:
- Fintech applications can take help from AI-powered chatbots. Integrated within the app customers can reach out to support without switching through the apps.
- AI and ML can analyze data and transactions and flag suspicious activity on the app.
- AI with two-factor authentication can act as a security layer. Facial or voice recognition can make the platforms more secure.
- ML algorithms can help analyze historical data. This way fintech apps can offer insights to make informed decisions.
- AI can help in the customer registration and verification process. It can verify important documents, and keep a check on compliance, and regulations.
Companies, E-Commerce, and Fintech:
The Adoption of Fintech by Companies:
The growth of e-commerce has directly impacted fintech’s popularity. The last few years thanks to fintech platforms e-commerce transactions have soared. Taking help from fintech platforms new ways of payments are available on e-commerce platforms. The growth of e-commerce has directly impacted fintech’s popularity. The last few years, thanks to fintech platforms, e-commerce transactions have soared. Collaborating with a fintech seo agency can help these platforms enhance their online visibility and reach even more users. Taking help from fintech platforms, new ways of payments are available on e-commerce platforms.
E-commerce platforms like Shopify accept Bitcoin and Ethereum as payment options. The concept of buy now pay later (BNPL) on e-commerce platforms is relatively new. It allows people to buy things in installments. At the same time it helps fintech platforms to reach new audiences.
Owing to its benefits major companies are leveraging Fintech to simplify financial transactions for consumers. For example, Spectrum, an Internet Service Provider allows customers to pay bills online. For Spanish customers: Uno puede Spectrum servicio al cliente.
The Rise of Digital Wallets
Fintech is truly becoming contactless
Most people may carry a debit or credit card to make a purchase. Well not anymore because virtual cards are introduced by most fintech platforms. They work exactly the same as a normal card. You don’t need to carry them in a wallet as they’re always available within a fintech wallet.
Moving on wearable payment devices are gradually becoming a norm worldwide to eliminate the need for a virtual or a physical card altogether.
Multiple wearables like rings and wristbands are available in the market. As aesthetic as these devices may look, you only need a slight wave of the hand, or a tap to pay.
These devices use near-field communication (NFC). When close to a contactless payment terminal both devices connect wirelessly making the transaction process hassle-free.
The Collaboration of Crypto and Fintech:
After multiple ups and downs the crypto market is heading towards stability. According to Statista there will be around 992.50 million crypto users in 2028.
Fintech driven by innovation has decided to cash in on such a huge market. Revolut a fintech platform has a crypto trading option for their users. JP Morgan pulled off something incredible by introducing the crypto coin “JPM Coin” for cross-border payments.
While there’s no doubt this step is helping the fintech users with diverse payment options some things remain unanswered. Market volatility and unstable coins are a threat to fintech. One way to counter this problem is to have stablecoins and risk mitigation tools. These problems can be overcome.
Open Banking in Fintech:
In open banking individuals agree to share their financial data with a third party. The objective is to analyze the data and come up with personalized advice.
Open Banking can help in budgeting, expense tracking, planning, lending, and more. With personalized solutions, a third party can help you make informed decisions.
There’s more to open banking than just providing personalized financial solutions. The introduction of social commerce has ignited the use of open banking. In 2020, 24.7 million users opted for open banking. According to Statista, this figure will reach 132.2 million by the end of 2024.
Take the example of TikTok Shop or Facebook Marketplace. They’re more than just a social platform now, as people can buy and sell things on it. This way, a user can buy and pay for things without switching to another app.
Fintech is Here to Stay:
Fintech has revolutionized how we interact with our finances. Virtual cards and wearable payment devices are a testament to it. Open banking, along with AI and ML have played a key role in enhancing fintech’s capabilities. With that, the stage is all set for fintech to further enhancements that would surely let us interact with our finances more engagingly.
FinTech is taking the world by storm. We can now pay via virtual cards and wearable payment devices. Just like that, open banking, AI, and ML have been head and shoulders to assist fintech.
