Fintech is one of the fastest-growing technologies in the world. With every passing day, this technology is expanding to a new level and making a benchmark. With the help of Fintech, you can easily encounter different problems related to payments, money, and banks.
According to Statista, In 2018, about 61 percent of Americans used digital banking, which is set to rise to 65.3 percent by 2022.
Banks and other financial institutions are developing customer-centric models that give an overall better banking experience for everyone, and they are taking help from Fintech to get the job done. There is a lot more to come in the Fintech industry to solve the financial issues with modern trends and development in Fintech.
In the coronavirus outbreak, the Fintech app development industry has evolved much and helped transaction money with any contact and overwhelmed support from banks and financial institutions. It seems like the support provided to Fintech will last longer, and with development trends, Fintech will become smarter, quicker, and convenient.
The year 2021 and 2022 will be for Fintech, as in these years, you will witness path-breaking innovations in the field of Fintech. As more people are coming into this field, the competition might get tough among the enterprises and startups using the fintech development technology to get the biggest slice of the cake.
Now let's see the current development trends in Fintech Technology:
1. Artificial Intelligence & Machine Learning
Artificial intelligence(AI) and Machine learning(ML) are among those trends that are getting introduced to every new technology because the power and development they possess are unmatchable. These trends help in the growth and development of technology, and this trend is not going anywhere soon.
Through Machine Learning, the AI chatbots only get smarter with time and help improve financial literacy with users. Many industries have already experienced the greatness of using AI and ML, and it would be wondering to see how banks will adopt this trend and benefit the users.
Many digital assistants can provide personal business/Financial advice to users, who in turn get to learn more about their finances, the investment and saving opportunities available to them, and banking industry concepts they may not have been aware of before.
With the help of AI and ML, banks can make appointment scheduling solutions to help the banks in scheduling appointments with the customers to give the best services.
Blockchain is one of the most important trends in Fintech development in the banking sector or finance sector as blockchain helps make the records extremely safe and secure, which is quite a much-required in these sectors to reduce or eliminate cyber crimes happening these days.
Blockchain can help businesses become more comprehensive, accessible, and secured networks for businesses. One important thing about blockchain is that it is not just cutting-edge technology but also the philosophy of decentralized finance, focusing on minimizing centralized procedures. In the blockchain, if the data is recorded in the system, it would become very difficult to modulate it, and it remains protected.
Blockchain assures that the data stored is secured end-to-end along with the least risk. Blockchain is also used to provide reliable cross-border payments.
Blockchain technology has also inspired the development of various P2P financial platforms that enable monetary interactions to occur in a decentralized manner. Financial companies and Banks are already looking to increase their Blockchain technology investments to lessen expenses and improve internal procedures.
3. Digital-only Banks
Digital-only banks provide various virtual banking services like contactless MasterCard, international remittance, P2P transfer with free transaction fees, and the ability to buy multiple cryptocurrencies like Ethereum, Bitcoin, and many more.
This trend has become popular in a very short period of time, as it offers convenience to the customers by eliminating tedious paperwork, visiting the bank again and again, and then waiting in the long queue.
This particular trend will help in decreasing the rate of customers going to the bank for very small reasons. Digital-only banks can use the appointment booking software for making appointments with the customers for the ease in taking appointments and solving queries.
4. Robotic Process Automation (RPA)
RPA is an emerging trend in the banking and finance sector. It uses software robots and digital workers to engage the customers 24*7 and reduces human error by giving accurate results. Not only this, but the finance companies have adopted RPA digital workers to manage the backend work like security checks, account maintenance & closing, credit card, trial balancing, and many more.
And this allows the financial institution personnel to focus on customer services. Very soon, banks will accept all these trends to transform the banking sector to another level. Most of the Finance companies are going for FinTech app development to help their companies with the emerging trends.
There are various advantages of using RPA in the Banking and Finance sector:
- Improve customer service
- Improve productivity
- Improve Accounting Process
- Improve Investments
5. Open Banking
Open banking is another exciting and revolutionary technology. It brings both Fintech and banks together by promoting data networking across companies. Open banking is related to PSD2 (Payment Services Directive 2).
Open banking forces banks to release data in a secure and standardized form, making the sharing of information easier between various authorized organizations online. It also enables to control consumer's banking and financial information via third-party applications by data sharing with AI and APIs.
Developing FinTech app development can help Open Banking make better decisions, make easy payments with smart devices and currency exchange. Also, customers can have multiple accounts in one place with excellent customer engagement.
Biometrics is becoming the X-factor in the Fintech development industry. From social media to the banking sector, biometrics have increasingly made it possible to increase speed and decrease friction.
Biometrics has made the transaction super simple and secure. Now people who have smartphones or make payments through mobile phones know that the transaction will only be done after providing a biometric scan of the face or fingers. In my opinion, it is a great step towards safe and secure payments and reduces cybercrime.
Many banking and financial institutions have applied this trend or technology in their apps, but few lacks behind, which needs to be fulfilled in a shorter time span.
Fintech software development will be vital in the banking and finance sectors as it possesses several advantages that can easily transform these sectors to another level. Most banks and financial institutions have already adopted this technology. Still, this entire sector should take enormous advantage of fintech technology to enhance performance and best customer services.
Some great software like appointment booking softwares can help these sectors schedule appointments and create a hassle-free environment, and in this pandemic, this is one of the most important things to do.
You can further take help in developing this software from reputed Fintech development companies.