The sudden hit of the pandemic in 2020 ensured that a lot of business had to undergo tectonic shifts in how they were run, with technology being the primary change factor. Fintech seems to be one of the domains that saw an upheaval of usage during the pandemic, and it looks like the trend is set to rise in the following years as well, owing to its relative ease to use and convenience.
Let’s take a look at some of the major changes expected this year in the Fintech domain.
Rise of digital only banks
Digital-only banks refer to the financial institutions that provide banking services, virtually. It gained quite a lot of popularity in a short duration owing to its convenience factor of customers not needing to visit any bank physically or doing any paperwork. It also is quite safe in the current times considering the cashless features.
Advent of robotic automation
Robotic automation is the process of automating the tasks usually done by humans using robots or digitization. Tasks like back end office works, account maintenance, security checks, card processing etc can be easily automated. The advantages lie in adopting this strategy lies in cost cutting and improving the overall efficiency or works.
Blockchain technology has been on the rise for a good while now and it is a system that ensures information is stored in a secured end-to-end method, negating risks. In FinTech, Blockchain is used to ensure secure transfers and payments. As per research, AI will reduce 22% of the bank’s operational expenses by the year 2030. It can also curb cyber crimes by identifying financial frauds.
Related to PSD2 (Second Payment Services Directive), Open Banking helps customers view and manage all their financial accounts in an easy and convenient manner. The consolidated view of the accounts provided helps customers to take better financial decisions that reduces the occurrence of debts. It basically unites banks and FinTech by allowing swift data networking.
Moving ahead, we shall be witnessing some surges in the above mentioned trends, that will help make the financial services better in the upcoming days.