5 Fintech Development Trends In 2020 To Know

These days Fintech or financial technology is experiencing a lot of positive changes. This is a good thing! Why? Well, because advancements in this industry will ultimately be beneficial for the financial services companies and their customers who use those services to manage their finances and avoid overspending. It can also lead to the invention of many advanced business solutions. Also, it can streamline operations by combining different software into a single digital ERP solution. And not to forget how positively it will impact the banking sector, making their operations much smarter and faster.

Top Fintech Trends

Since the current pandemic began, Japan experienced a huge growth) in financial app usage (55%) followed by South Korea (35%), United States & China (20%), and Germany & Italy (15%). Considering the stats, there’s no doubt that fintech has progressed a lot. It is safe to say that the usage of financial apps will continue to grow in the future. Therefore, it is the right time for those companies working in the financial technology sector to start equipping their businesses with some of the hot fintech trends discusses below.

1. Digital Banks

Like the name suggests, digital banks are those which do not have a physical branch and that they provide all of their services online. Also known as FinTech banks, it is becoming quite a popular trend. This will facilitate people by eliminating long lines and paperwork, allowing them to save a lot of time and hassle. However, it means that clients will have to use their PC or smartphones to manage their finances. For this, one has to make sure to have a strong internet connection. I personally use Spectrum for such needs as it helps me make important transactions easily - and also the fact that the Spectrum internet rates are pretty affordable!

Digital banks are on the rise as they not only offer flexibility but also innovative services at affordable rates. It was also revealed in a report that customer visits to banks will decline by 36% from 2017 to 2022. And during this same timeframe, mobile transactions will grow to 121%. Well, the writing is on the wall! It clearly shows how fast customers are adapting to digital banks. And by the looks of things, that time is not far when they will take over traditional banks.

2. Contactless Biometric Identification

The concept of biometric identification is not new. In fact, the technology is implemented by almost every business to ensure security to their customers. However, in view of Covid-19, things have started to change. According to a report, the popularity of biometric sensors that involve physical contact will decline greatly It is because of health concerns. Instead, it is predicted that contactless solutions will be made available for biometric identification that will eliminate the traditional fingerprint system.

3. Voice Payments

The invention of voice technologies was done to cater to the needs of Gen Z. However, you are now going to see it play a much bigger role in the financial technology sector. Introducing voice payments! This technology will take the customer’s voice as biometric data to authorize payments. It will surely be easier for people to adapt to this type of banking. One will be free to use voice payments as a way to reroute funds between different accounts or to send money to loved ones using services like PayPal or Venmo.

4. Blockchain

Blockchain in Fintech offers a more accessible, comprehensive, and secured network for businesses. It reduces costs and makes the processes more efficient. As blockchain is a decentralized system, security and transparency have increased, allowing organizations to ensure security to customers. Also, it can enhance the speed of the transactional process as compared to banks because of their dedicated and protected servers.

5. Artificial Intelligence

Artificial intelligence or AI will really contribute to the advancement of fintech. How? Well, when it is introduced in the financial technology sector, it will simply cut the expenses of operating from banks, loan associations, credit unions, and other financial units. They will also help in the collection and analysis of data that will help an investor make better decisions regarding their investments. AI is also used by loan providers who use it to give their services with less to no risk in returns. It is also possible that different cable providers such as Spectrum start using AI to better facilitate their customers. Because when people dial Spectrum phone numbers they would get their desired answers. It can easily help improve their customer service even more.

Conclusion

The financial industry is developing at an astonishing rate, giving rise to new fintech trends that can better meet the customer’s demand. It helps different providers to deliver quality services that allow for increased transparency, secure identity authentication, and faster transaction processing. Some of the trends discussed above can prove that the future of the financial sector looks bright!