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Despite the fast growth of FinTech prior to the pandemic era, 2020 forced companies to adopt this cutting-edge tech to stay afloat. The pandemic acted like a forest fire that ignited digital transformation financial technology trends like E-Commerce, Contactless payments, and Cloud banking. This scenario has opened a world of opportunities for FinTech players.
In this article, let’s glance at some of the trendsetting done by FinTech companies across the globe.
Cashless Payment Alternatives
The digital modes of payment have gained additional traction since the pandemic as it has social distancing and remote operational advantages. The Visa Back To Business Study 2020 shows that around 70% of global consumers started trying a novel payment mode.
Online businesses like E-Commerce, Food Deliveries, and Gambling portals are also focusing on including flexibility in payment modes for user convenience. For instance, Asiabet is one of Thailand’s most trusted online casino portals. In addition to providing multiple payment options, such portals provide gambling site recommendations with the best bonuses recommended by industry experts.
Rise Of Embedded Finance
The concept of non-financial firms like E-Commerce sites creating their native financial services, including the booming trend of “Buy Now Pay Later” along with Banking-As-A-Service. This has a greater and strategic objective of retaining the loyal pool of customers for the future by adding a dependency factor on payment.
Before this trend, non-financial firms needed to depend on financial service firms’ payment portals that led to a fee component. With the inclusion of embedded finance, this limitation is now avoided. The emergence of open banking frameworks played a big part in the widespread adoption of this technology.
Crypto Investments Are No Longer Alien
Purchasing of Crypto Assets saw a meteoric rise since the onset of the pandemic. The widespread purchase of Bitcoin and the development of multiple online trading platforms contributed immensely to the Crypto market. Fortune has reported the global Crypto market hitting the market capitalization bracket of $3 Million.
Many major firms like Tesla and Microstrategy have had Crypto Assets as part of their annual reports since 2020. Even banking institutions are now making it an option for their users to purchase financial products via Cryptocurrencies.
Widespread Application Of Artificial Intelligence and Machine Learning Tech
AI is permeating leaps and bounds in Banking, Financial Services and Insurance sectors. The sheer volume of financial products leveraging AI technology is growing rampantly. In the case of insurance companies, the application of AI is as broad as money laundering detection to the underwriting of policies.
The latest trends in FinTech do not get completed without the mention of Autonomous Finance. This Financial Management technology uses Algorithm-based techniques to propel data-driven decision-making with minimal human intervention. This objective is achieved by learning from customer patterns/behaviors, optimizing the selection of their goals aligned with the latest banking regulations.
The impact of Autonomous Finance, in particular, is immense due to the massive reductions in manual efforts and corresponding gains in revenue for enterprises.
Also, the pandemic period has seen plenty of Cyberattacks on financial institutions forcing them to build a robust digital fortress. AI comes to the rescue in this regard too. These solutions help prevent unauthorized data access and simplify fraud detection. The facial biometrics can be quickly checked against government-issued ID proofs and detected with impressive levels of accuracy.
Sustainability Initiatives Gaining Traction
The climate change problems and the catastrophe brought about by the pandemic have caused a stir among the global corporations to invest more in ESG (Environmental Social and Governance) initiatives. From setting goals for Carbon Neutrality in the future to using biodegradable material for packaging, industries are all in for ”Go-Green.”
Consumers also expect them to be responsible for the environment and human wellness as they go about their business operations. Therefore, showcasing their passion for sustainability/ green projects is a smart way to enhance brand image among their target audience.
FinTech firms are cashing in on the remittance market. The customers in rural areas face big problems with the traditional providers charging huge fees and are slow in resolving their demands. The latest digital financial transfer solutions help customers avoid such hassles and enable them to transfer money from mobile applications at low rates globally.
Final Thoughts
The need to work and operate remotely has caused a noticeable shift in FinTech trends across industries. Customers and enterprises demand payment effectiveness and convenience, and speed like never before. FinTech companies are on the move to innovate and revolutionize the financial management space with an added component of Sustainability to woo their user base.
