BelfricsBelriumBitcoin WalletBlockchainCryptocurrency

5 Biggest FinTech Trends This Year

By September 14, 2017 No Comments

Quick shifts in regulatory parameters and governments’ less-than-proactive approach, traditionally, separated innovative financial technologies (FinTech) and traditional financial services. However, with the advent of mobile connectivity and cloud-based data analytics, customers are constantly looking for more transparency, security and high-end usability from financial service providers. Financial institutions, therefore, are increasingly inclining towards developing long-lasting partnerships with FinTech companies, so that they can offer customers more profitable services and in turn boost top and bottom line growth. According to a research finding, more than 95% of financial service providers are searching for right partnership opportunities with FinTech companies.
Both in the North American and Asian markets, financial service providers continue investing highly in emerging, next-generation FinTech trends. Interestingly, Asian financial houses are more proactive in this context than that of their North American counterparts. By combining emerging FinTech trends in their service offerings, these companies aim to deliver more value to customers than before and thereby, stay ahead in the competition. It is estimated that if FinTech investment continues to increase in this rate, in near future, the sector would be worth almost US $5 trillion.
That said, here are the five major FinTech trends that we’ve seen this year.
1. Artificial Intelligence: One of the most explicit FinTech trends of this year is use of artificial intelligence in financial services. Applications, powered by artificial intelligence (AI), use data analytics and customer service information to create highly personalized and faster user experience than earlier. AI in financial sector is most frequently used in customer service, customer acquisition, brand management, onboarding and risk and credit management purposes. The latest findings indicate that currently in India, more than 36% of financial houses are investing in AI technologies. Almost 70% of the remaining financial service providers have expressed their willingness to start investing in these technologies in near future.
2. Blockchain: Blockchain-based exchange systems (such as, Bitcoin) are drawing considerable investments both in India and across the globe. In order to compete with growing popularity of virtual currency, traditional financial organizations are using Distributed Ledger Technology (DLT), which is the underlying blockchain architecture. Owing to this technology, customers will enjoy quicker payment processing (almost instantaneously), relatively cost-effective cross border transactions by reducing the number of intermediaries and automated instant exchanges.
3. Mobile Transactions: A majority of today’s global population is equipped with smartphones and they, at least, once in a month use a reliable peer-to-peer (P2P) payment app. The trend, according to market research reports, would continue to escalate in the new future and slowly people will depend more on mobile transactions and contactless payment solutions than traditional financial services. By encouraging safety and reliability of mobile transactions, financial service providers would not only draw more tech savvy users but also they can use these technologically advanced services as instruments to create a robust brand loyalty.
4. Contactless Card Payment: Investment boost in the FinTech market is encouraging participants to transform customer smartphones into contactless payment systems. By 2021, it is expected that the total number of users, who prefer cardless transactions, would be almost double than the existing condition. Owing to this, customers will enjoy one-click in-store purchase, rather than using separate cards for different transactions.
5. Biometric Security Systems: The main impediment against widespread popularization of contactless transactions and mobile purchases is security gaps and growing number of frauds. The FinTech companies, therefore, are increasingly emphasizing on implementing biometric security measures to customer devices and applications. Though fingerprint scanners are already quite popular, however, experts indicate that it may not be enough when it comes to providing end-to-end protection to sensitive user data. Therefore, multi-step biometric security verification systems, inclusive of fingerprint scanning, facial recognition and iris scanning, are on the rise.
Belfrics is working closely with a team of FinTech professionals so that they can offer customers state-of-the-art products and services that comply strongly with the evolving FinTech trends.

Leave a Reply