Last Updated on November 30, 2020
Financial technological advancements are happening in leaps and bounds, and it’s fascinating to think about how the economic landscape is going to look like in the coming years and months. Of all the notable changes that have happened recently, though, allow us to share with you the seven trends that we believe companies should be most aware of to remain on top of their game.
Incorporating these technologies into your current process has never been more pressing especially if you’re learning how to avoid typical bank fees. There are current fintech trends out there that can boost compliance and prevent getting penalized, after all. With that said, let’s get started!
While it’s still essential to determine your target demographic when starting a business, this doesn’t mean that there’s no potential growth in revenue in added accessibility.
This trend can be interpreted in two different ways. First, accessibility can mean making your online and communication platforms accessible to everyone, especially those that are physically challenged or experiencing intermittent network connection.
On the other hand, it can also mean making your business or financial processes more accessible to the unbanked (or those who do not own a financial account or product through any form of financial service or establishment).
Remember, the keyword here is access. To extend the reach of your business and serve as many people as possible.
Also known as digital-only banks, neobanks are app-based banks that don’t have a brick-and-mortar establishment. We definitely believe that they will significantly impact our future financial landscape.
After all, they offer great convenience through automated processes, real-time notifications, and live updates all within just a few taps on your smartphone.
One of the biggest hurdles that neobanks face are strict legal compliance. These regulations are enforced to protect our personal and professional financial interests, after all. Hence, it’s really not that surprising that among the biggest fintech trends this coming year are blockchain services.
A blockchain is a digital record system that documents transactions in digital blocks that are connected with chains within a network of computer systems. This means that every transaction is recorded on every network, and every new transaction is then tracked and added across the multiple ledgers as well.
This process, therefore, makes it close to impossible for people with malicious intent to hack your system. Other benefits include added validity, improved record tracking and management, and transparency.
Boosting client engagement and user experience are big in the finance industry right now. Financial and banking institutions are constantly coming up with new ways in order to make their system more inviting and approachable.
Unfortunately, this could mean getting a team (or teams) of employees working through the repetitive tasks that client engagement efforts entail…but it doesn’t have to be.
Instead, you might want to consider looking into integrating artificial intelligence into your system. Not only can you set up an automated chat service to always have someone (or rather, something) waiting to assist your clients 24/7, but also get those repetitive financial tasks out of the way to better utilize your employees’ efforts elsewhere.
These will also streamline your financial processes.
Speaking of streamlining, that’s precisely what regtech is?a technology that seeks to improve regulatory processes in order to help financial institutions cope with the ever-changing challenges brought about by automation and compliance.
This tech seeks to prevent legal repercussions and its costs. It also works to strengthen cybersecurity that usually holds common compliance pitfalls that can get financial companies in trouble.
Data is everything in the world of finance. It is needed to track transactions, records, and other important documents. These data must also be kept safe yet easily accessible to the concerned parties.
Gone are the days when financial startups utilize data banks that are constantly needed to be backed up for safekeeping. Instead, we recommend looking into cloud solutions. It’s definitely the future of data access and management.
Further advancements are being made for improved scalability. In relation, IBM also announced that it’s working with Bank of America to create a public cloud to better improve customer services and accessibility.
Only time will tell where these tech upgrades will bring us.
Finally, you have probably noticed cybersecurity as a recurring and underlying point in the previous trends we have mentioned above.
It is a factor that financial companies worry about when performing updates to improve their accessibility. It’s something that neobanks strictly prioritize in order to continue providing safe digital and app-based transactions. It’s even the main reason why blockchains were developed in the first place.
It is a critical aspect that binds various forms of technology together and we don’t expect its advancements to slow down anytime soon. In fact, here are some of the things that we can expect from the field of cybersecurity in the near future:
- Cybersecurity companies will focus on cyber attacks coming from commoditized tools accessible through the dark web. What do you visualize when you picture a hacker in your mind? Is it a brilliant person capable of launching sophisticated cyberattacks?
Apparently, doing malicious actions are not as complicated anymore. There are a plethora of ransomware apps and services that anyone can hire through the dark web.
- Increased efforts will be devoted to keeping clouds safe. As mentioned, clouds are going to be responsible for holding most of the bulk of digital data very soon, so it’s critical to never stop cloud security efforts given the devastating consequences at stake. You can say that a financial cloud is a hacker’s dream.
- We will transition towards digital or AI-handled transactions. Cybersecurity experts have pointed out the vulnerabilities of people-conducted transactions time and time again. Hence, we’re not going to be too surprised in seeing further AI integration for the sake of increased cybersecurity.
And that’s it! Do you have any fintech trends that you’re really excited about? As for us, these seven are the ones that are really keeping us on our toes with anticipation.