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.