Current FinTech Trends to Define The Future of Finance and Emerging Technologies

About six years ago, when we had started

About six years ago, when we had started setting WebMob up, nobody had any clue as to which direction the FinTech industry would drive into. Today, the FinTech space is gaining attention as well as a significant development, not only in terms of the technologies but also in terms of customer adoption. In fact, recent reports suggest that the global financial technology market is expected to grow at a CAGR of 22.1% in the period of 2020-2025. This growth is synonymous with the trends we have been observing in the past years and it is expected to continue ahead.

What are the factors that are driving this growth?

Primarily, digital payments, lending segments alternatives, and technology-led innovations have been paving the way for better scope in the field of FinTech. Calculated risks, a keen eye on detail, and a strong knowledge of FinTech trends can be instrumental in benefitting from the changing landscape. Let’s have a deeper view of the current trends in the FinTech industry:

Blockchain is Set to Turn The Tables

Without a doubt, the latest trends in FinTech begin with the modern peer-to-peer transactions carried out on distributed ledger technology. Blockchain is a type of DLT that enables faster, cheaper, and simultaneous confirmation from all parties on the network. This not only eliminates the need for intermediaries but allows a secure alternative to the lending segments. The revolution is not limited to the adoption of cryptocurrencies and blockchain wallets. Blockchain-powered trading platforms are continuously gaining a popular place.

More than 75% of financial services companies are eager to witness live production systems soon.

AI Seems Promising For FinTech

Copious amounts of data come with the inability to handle it. That’s where Artificial Intelligence and Machine Learning save financial institutions. Today, we not only have stand-alone solutions for finance-based operations, but we also have analytics and performance monitoring applications being used by many financial giants. The existence of AI allows consumer lending platforms to leverage machine learning capabilities and improvise on the traditional predictive-analytics approaches.

Growth of FinTech Trading and BaaS Platforms

The disruptive technologies are at their peak and every sector of finance is looking forward to grabbing its share. That’s where the FinTech trading platforms come into the picture. Trade finance, Money market, Intraday, and even Fiduciary – for all that a business might need, we build a FinTech trading platform for them. In addition to trading platforms that are scalable and secure, the industry demands banking-as-a-service platforms and neo-banking services for next-gen customer solutions.

The Intervention of Robots

Marking new strides in advancements, we also have robotic-process automation leaving a significant impact on traditionally carried out processes and operations. Though the welcome of RPA in FinTech has been quite recent, we continue to come across several experiments being carried out by firms regularly. Targeting specific abilities with the help of emotional intelligence, analytical and critical reasoning, natural language processing, and physical sensors is out there in the limelight. To address the challenges it comes with, RPA is now being stimulated to complement the human workforce environment and perform the tasks more effectively. You can read more about RPA through our latest article.

Open Banking and Cyber Security

In a recent post, we explained what open banking truly is and what can we expect from it ahead. Around the globe, several financial institutions are altering their regulatory norms and compliance to make way for customer-focused FinTech solutions. Open banking is one of the areas that are yet to be discovered by most global banks.

Now the emerging technologies come up with their own challenges pertaining to the cybersecurity issues that might arise. Extensive dependency on cloud environments and the typical API management standards pose the need for stronger cybersecurity solutions. If we relate this to the banks opening up their APIs, they would need ample cybersecurity assistance to operate efficiently.

The FinTech space is transforming at a pace too high, it might become difficult to catch up with the developments. But if tracked up, these new-age technologies can not only prove to be a boon for you but your business as well.

Stay in touch with the latest trends in FinTech with your own FinTech support system – WebMob. Check out our other blogs to have a deep understanding of what each of these technologies can do for you.

Open Banking: The Incoming Revolution in The FinTech Industry

You make your daily payments from your

You make your daily payments from your checking account, and when you need to buy a new car or a home, you probably just take a loan from the bank. But today, instead of just satisfying the daily financial needs, emerging technologies are creating more options for you. And what if we tell that you can save up your money, buy easily and pay effortlessly? Sounds crazy, right? But with open banking, the impossible is possible now!

Today, 8 out of 10 financial firms are adopting or planning to adopt open banking.

Ever since the inception of this concept, banks across the globe have been quite stiff with respect to their take on this novel idea. At WebMob, we have always kept a close eye on these trends and thus, we are here to disclose all you need to know about open banking before it actually steals the show.

What is Open Banking?

The term open banking generally means the sharing of financial information electronically, securely, and only when the customer approves of it. Application Programming Interfaces or APIs allow third-party providers (TPP) to access such information and use it for the development of new applications and services. In a nutshell, the ultimate aim of open banking is to provide a better experience to the customers.

Over 71% of financial institutions feel that open banking is a positive initiative, while 77% agree that it is a radical change for financial services.

How is Open Banking Proving to be Revolutionary?

Open banking is being considered as one of the striking sectors in the FinTech industry. It has allowed banks to ‘open up’ and we acknowledge the Payment Services Directive (PSD2) for bringing this change. It has introduced AISP and PISP in the field and they’re all set to turn the landscape of traditional banking.

  • Account Information Service Provider (AISP)

These TPPs are authorized to retrieve account data provided by banks and financial institutions. The data obtained is then analyzed to gain insights and develop value-added services for the customers.

  • Payment Initiation Service Provider (PISP)

These  TPPs are authorized to initiate payments into or out of a customer’s account. In order to operate and carry out such transactions, the PISPs have a specific license.

All of this has combinedly offered plenty of opportunities for creating new value-added services, streamlined lending,  automated accounting, and much more.

Around 94% of financial institutions are considering how Open banking can enhance their current service.

Now, when banks are finalizing their open APIs, and the FinTech industry is providing excellent innovations, the customers have found themselves in a big dilemma about whether to choose open banking or not!

To make things crystal clear for you, let’s have a wider look over the benefits of open banking.

    1.  Banks can easily connect to the APIs of the other service providers in the market by opening their APIs and also expand their offerings to the customers.
  1.  Bank will have all the relevant data obtained from the customers and thereby analyze the same to provide better-customized services.
  2.  With the introduction of digitization through open banking, the banks can improve and automate the existing services and products. Also, they will able to adapt to the changing business trends in the market as well.
  3.  The customers can view the necessary information in other partner banks through a single interface itself.
  4.  FinTech companies will be able to innovate new products and services such that the customers can plan their finances, manage loans, and investments in a better manner.
  5.  They will able to create marketplaces for different niches of services, such that the customer can make use of the best or access all through just one interface.

Did you know that 84% of the financial services companies are investing in open banking products and services?

Should I Shift Towards Open Banking?

Yes. You definitely should. With the blink of an eye, open banking is going to change the face of the finance industry. Due to the current obstacles being faced by traditional banks, they will be forced to make the move, while the FinTech industry would surely adopt a model which will simplify their regulatory and compliance requirements. And for a customer- it’s a win-win situation as there would be more affordable and customized services, more convenient operations with financial tools, lower costs, and increased efficiency.

When you opt for the change, you need a guide for help and there couldn’t be a better place than WebMob. With the best practices used in various financial services and efficient platforms and FinTech, we are here to help you keep up with the developments in the finance industry.

So, come join us and embrace the technological revolution in finance.