It was strange to think how fin-tech became the game-changer of the world's economy after the pandemic. Before the pandemic, it took financial establishments a long time to adopt AI. When the world locked down, they finally made headway on automation and extended support services. For example, in the United States, 59% of Americans use more Fintech apps now than they did before the pandemic.
Fintech is witnessing a lot of changes; some are subtle while some are radical.
Here are 6 fintech trends that would shape the financial sector by 2022:
Advance Cross-Border Ecommerce
There has been a huge increase in cross-border payments as more and more people invest, trade, and buy things from abroad. Thanks to online platforms, it's never been easier for small businesses to reach customers worldwide. Sales in foreign countries are skyrocketing, which provides enormous growth potential. It's hard to imagine a world without cross-border transactions. These days, consumers expect super-easy payment solutions.
Blockchain Technology Will Reboot Your Business
The adoption of blockchain by financial institutions is on the rise but it has been slow so far. It's still a huge deal, though. It seems like more & more blockchain start-ups are starting up and crypto is becoming a bigger part of a lot of different business sectors. One study found that the size of the global blockchain market is predicted to reach $39.7 billion by 2025.
There's a good reason why people are using more and more blockchain in their digital identity management. It provides an unparalleled level of security for both ends of the transaction, making it a perfect way to combat fraud and manage regulatory or audit issues. Blockchain technology eliminates mistakes and saves time & money also. It can dramatically accelerate asset transfers, payments, and investments. IT Support Los Angeles can help fintech firms leverage blockchain technology to ensure the safety of your data.
Due to changes in consumer habits caused by the pandemic, bank closures are becoming more common. Digital banking lets you do everything you need to do, all the time. You'll be able to make payments and transfer money quicker than ever before, without having to worry about queues or cashiers. And your experience will be better than anything you've had before! One Statista study says that in 2021, 64.6% of US citizens used online banking. Online banking has finally become a transformational tool in the financial industry, so it's important to be ahead of the game.
There is more to digital banking than just going paperless and cashless - the underlying tech has helped transform traditional banking into its modern format.
To inspire user confidence, financial systems must be safe. Cyber threats can result in serious consequences and further damage to a financial institution's reputation. Many fintech organisations will have the types of data that hackers are looking for, such as financial transactions and personal information. As a result, the financial industry is more reliant on cybersecurity than any other.
According to Forbes, cybercrime costs $2,900,000 each minute. As a result, one of the key avenues for implementing new technical solutions is cybersecurity.
Robotic process automation (RPA)
With a relatively minimal investment, robotic process automation allows firms to improve their job productivity. RPA employs software robots (bots) to free up human resources and enhance the efficiency of mundane, repetitive business tasks.
Fintech has generally concentrated entirely on consumer-to-merchant payments, but that's about to change. Payroll solutions such as salary on demand, salary advances, crypto payroll, and early direct payment will become more widespread this year. Fintech is gradually becoming a part of every function within an organization as it helps to digitize legacy procedures.
FinTech tendencies will undoubtedly change after 2020. Last year's events broadened our grasp of what a digital economy would look like in the future. Maintain a competitive advantage by influencing the future of your business finance by keeping these latest fintech ideas on your radar screen.
Brent Whitfield is the CEO at DCG Technical Solutions.