The global financial services industry is undergoing a rapid transformation. With the emergence of new and innovative technologies referred to as Fintech, companies in the financial services industry are gradually adapting to be future-ready. If you own a financial services company, you’re exactly where you need to be. In this article, we’ll take you through all the trends that are slowly but surely shaping the future of Fintech, along with the future of the overarching financial services industry. Adopting and embracing these fintech trends for the future of asset management will ensure that your company eventually becomes future-ready.
Trend#1: Robotic process automation
Robotic process automation or RPA involves the use of digital workers or software robots for automating a variety of tasks. The financial services industry has already started to implement RPA for improving organizational inefficiencies and cutting costs. A variety of back-end processes like customer onboarding, trial balancing, and account closure and maintenance is also being automated through RPA.
As far as the Fintech future is concerned, RPA is likely to play an even bigger role in the times to come. It allows companies to become more efficient and also gives the human task force the opportunity to focus on critical business aspects such as customer service.
Blockchain has become famous due to its involvement in cryptocurrency development and is one of the biggest Fintech trends right now. However, its use goes way beyond cryptocurrencies. Banks are adopting blockchain tech for making transactions safer and more secure, and it’s working. Blockchain tech boasts of advanced security features, which ensure end-to-end data security.
Investments in blockchain tech are soaring, and they’re sure to skyrocket in the years to come. Even though cryptocurrencies are facing the heat from governments around the world, the stance towards the underlying technology, i.e., blockchain, is quite positive.
Trend#3: Digital banking
The last decade has seen a transformation in the banking landscape – banks have increased their efficiencies by embracing digital banking. As a result, many manual tasks have been made redundant. All that users require nowadays is an internet-enabled mobile device for carrying out their banking activities without paying physical visits.
In addition to the ease of carrying out banking tasks, digital banking also provides transparency in terms of access to financial information. With just a few taps on the smartphone, users can access their financial information and keep track of transactions.
Trend#4: Contactless biometric security systems
Biometric security systems have played a critical role in enhancing security in the financial services industry. However, due to the COVID-19 pandemic, the technology had to undergo yet another evolution. As experts warned against touch-based payments for containing the spread of the virus, contactless biometric security systems were introduced.
These systems have not only proved effective in keeping COVID-19 at bay but also promise to be able replacements for touch-based solutions. Major Fintech companies have already adopted these systems, and they will have a huge role to play in the future of Fintech.
Trend#5: Offering customers a variety of digital payment options
Digital payments have become the norm in the financial services industry and now, companies are focusing on ways to give their clients as much flexibility as possible. Previously, digital payments revolved around debit and credit cards only. However, with the emergence of various digital wallets, companies need to offer more options to their customers.
This trend also makes things easy for clients as they can select a payment method that suits them. A company that refuses to expand its digital payment options will ultimately lag behind its competitors, who make payments flexible for their clients.
Trend#6: Machine Learning and Artificial Intelligence
The global expenditure of banks towards their operational expenses is set to be slashed by a whopping 22% or $1 trillion by 2030. This reduction in operational expenses will be a result of the financial services industry’s adoption of Artificial Intelligence (AI). AI is also set to play an important part in the prevention and management of financial frauds, threats, and cybercrimes. The financial services industry will also grow more customer-centric because of AI and Machine Learning’s combined ability to record interactions accurately.
Chatbots are a shining example of the success of AI implementation so far. However, it’s only the beginning. In future finance, customer management will become even more refined due to greater roles set to be played by ML and AI.
The future of Fintech is an interesting concept to behold and based on the evidence of the results driven by the adoption of new technologies, it’s safe to say that the future seems bright. However, if you want your financial services company to be future-ready, there is no time to waste. Steps need to be taken for your company to survive and thrive in the times to come.
Staying up to date with trends and ideas for the future, will keep advancing your business strategies and approaches. This is a crucial approach for any business to keep excelling.