FinTech has empowered businesses and people alike, across the globe
With just a few clicks on the phone and an internet connection, FinTech has revolutionised the way people performed banking tasks. Who thought it would just take a few moments to achieve money transactions from the remotest of locations without making an inch of physical movement? But the combination of finance and technology has moved mountains and done the unimaginable. From financial services to loans to insurances, FinTech has empowered businesses and people alike, across the globe. With technological advancements being made in the FinTech sector at an exponential rate, 2021 looks even more exciting and promising. Here’s what the sector has in the offing this year:
Robotic Process Automation (RPA)
Robots and advanced technology will soon perform tasks earlier carried out by humans as organisations gradually adopt RPA to manage various backend responsibilities including security checks, customer on-boarding, account maintenance, and closing, trial balancing, credit card, and mortgage processing. The technology allows FinTech firms to carry out mundane yet crucial tasks proficiently while saving costs of hiring people.
The technology mostly associated with Bitcoin has brought a level of transparency in financial transactions and done the unthinkable. It has made the transactions much more secure and allowed the customers using the technology to trust the FinTech industry. Even in 2021, it will play a key role in transforming the banking sector.
Artificial Intelligence (AI) and Machine Learning (ML)
According to experts, the operational expenses of FinTech firms will be reduced by 22 per cent by the year 2030, thanks to AI and ML. AI can also bring down cybercrime by detecting financial frauds and threats. Other than that, it can enhance customer experience by recording all the customer and organisation interactions and refer to the stored data to propose the right deals to individual customers.
This year the FinTech sector plans to enhance financial inclusion by penetrating the marginal sections of the society by making banking efficient, fast, and convenient.
Biometric security systems
To prevent cybercrime, FinTech companies are going to enhance their biometric security systems, which are known to be reliable, foolproof, and would be contactless too.
The FinTech sector is making efforts to make its customers much more aware in terms of money transfer and payments, budgeting and financial planning, savings and investment, borrowing, and insurance. This is to help customers who are careless with money. Investing in their financial literacy would also transform them into loyal customers.
An amalgamation of FinTech and banks that enable data networking across institutions is what defines Open Banking. It is reported to have generated $7.29 billion in 2018 and is expected to reach $43.15 billion by 2026. Open banking partnerships offer a consolidated view of financial accounts to its customers, which allows better financial decision making, lower debt, and improved long-term wealth generation.
Regulatory technology or RegTech is expected to bring technological advancements in the highly regulated financial industry and transform its landscape. RegTech solutions include identity management, regulatory reporting, transaction monitoring, risk management, and compliance software. The technology enables banks and other financial institutions to highly reduce administrative overhead, protect customers, and ensure financial stability for everyone. The technology is known for its speed, agility, integrative power, and analytical capabilities.
Technological evolution is an ongoing process that continues to make our lives simpler and easier than ever before. These new tech trends are sure to make the year for the industry a path-breaking one, which is also much more robust, efficient, and customer-friendly.
The author is the COO of Payworld
DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.