Top 10 Fintech Trends for 2021:
Where 2020 was an unprecedented revolution, 2021 will be a year of major adjustments and transformations. As opportunities arise in the fintech sector, some trends will persist into 2021 and this could boost financial services.
In 2020, online brokers gained momentum with the increase in UPI payments, and many people switched to online banking services to stay socially distancing and safe. With more people moving to digital FinTech solutions for their finances, 2021 offers great opportunities in the FinTech industry.
Let’s take a look at the best fintech trends for 2021.
1. Customizable Programs
The financial industry will need to focus on delivering a high-quality customer experience to keep up with the competition. As customers increasingly communicate through channels, the fintech industry needs to develop powerful solutions.
Manual processes can be eliminated and all processes can be digitized and automated, eliminating the need for customers to fill, fill or scan documents, download, print, sign, and scan documents. Fintech applications include document rendering, file conversion, and data capture to provide customers with a unified digital solution.
2. First digital collaboration
All recent surveys show that about 40% of workers still work on a semi-subsistence basis. It requires organizations to have digital tools to provide secure access to files and facilitate collaboration. When converting physical documents to various digital formats, this must be accurate. And while it is available to third-party users, data integrity or version history should be confused. These features, when integrated into fintech applications, can help keep all documents and files safe in a secure infrastructure by making them available through simple web-based API tools.
3. Big data management
Financial organizations collect large amounts of data, some of which are unstructured. To be helpful in identifying key trends and potential risks that can make better decisions, data must be processed using powerful analytical tools. Organizations also collect a large amount of structured data, usually loan application forms, tax documents, and bank statements.
An important goal for 2021 is to manage all information efficiently, as a good understanding of the data is essential to identify opportunities and optimize products and services. Therefore, fintech developers will create applications to extract information quickly and accurately and speed up data processing.
4. Bank Partnerships
The pandemic has removed many of the barriers to digital transformation, and traditional banks and other financial institutions are partnering with fintech companies to reach new customers and engage existing customers through new channels. But as banks take on innovative new ventures, they must find ways to quickly integrate operations and data to stay competitive and successfully deploy new services. Whether the features are integrated into new applications or functionality extended into legacy systems, fintech developers will play a vital role in helping finance take advantage of them quickly.
Robotic process automation is used to automate back-end office processes such as customer boarding, security checks, credit card, and mortgage processing. RPA will increasingly be used by the financial services industry to perform tasks more efficiently, reduce costs, improve organizational efficiency and allow staff to focus on key areas such as customer service.
Blockchain technology has completely changed the fintech industry and made transactions secure. Business Insider Intelligence reports that around 48% of banking representatives believe Blockchain technology will have the greatest impact on the banking sector in 2021 and beyond.
An important aspect of the Blockchain is that it is a new decentralized financing philosophy that focuses on minimizing centralized procedures. This ensures that the information stored is protected from start to finish with minimal risk and that the data is protected.
7. Artificial intelligence and machine learning
Artificial intelligence (AI) is arguably the most important technology class of all. According to the independent study, banks around the world are now looking to incorporate AI into their operations as AI will cut operating costs by 22% by 2030. This means banks can save up to 1 billion. dollars by implementing artificial intelligence.
By 2021, fintech applications will continue to use artificial intelligence with more sophisticated chatbots to answer customer questions, scam tools to verify the authenticity of KYC documents, and other advanced features to improve the accuracy and personalization of services. financial.
Artificial intelligence can also be used to control growing cybercrime by identifying fraud and financial threats.
8. Accelerate financial inclusion
The World Bank reports that nearly 1.7 billion people around the world, mostly from developing countries, do not have a bank because they do not have access to banking services. Interestingly, these regions use a lot of cell phones, which are perfect destinations for FinTech applications and bank branches. Several FinTech solutions have improved financial inclusion in these regions.
This trend will increase in 2021 as innovation in FinTech programs offers banking services to non-banks, improves financial inclusion, and makes financial services easier, faster, and more accessible to non-banks.
9. Digital banking services
Digital banking has made it easier for people to access a wide variety of personal financial information and carry out important activities without physically visiting banks. Much of the population is first switching to digital banking and discovering the convenience of paper banking. This has been spurred by advances in artificial intelligence (AI), biometrics, public banking, and cybersecurity. Customers are increasingly familiar with internet banking, which will play a greater role in 2021.
COVID-19 changed the concept of online shopping forever. Most countries will see phenomenal growth in e-commerce in the coming years as online retailing becomes the new norm. Online shopping has increased significantly around the world. The restrictions imposed by the pandemic have led 40% of online shoppers to use eCommerce solutions, while 45% of additional users are now shopping online compared to pre-pandemic numbers.