Finance is the central processor for running a business successfully. With the continuous up-gradation in the technologies, there is a complete revolution in the finance industry. The financial world is getting merged with the technology that has given rise to the one known as Fintech. It has entirely changed our way of doing and managing the money matter.
The traditional way of exchanging funds, making payments through direct cash has all been transferred in virtual money. It makes the financial affairs smoother and straight away that gets complete in a couple of minutes. All these have given an immense rise to the finance market that will reach $26.5 trillion by 2022. Moreover, the COVID-19 pandemic has played a more prominent role in the quick adoption of digital platforms for making online transactions.
Such transformations have expanded the industrial finance concept to the technology base. This leads to many advantages to global businesses by following various fintech trends that occur in the market.
Let us better understand the fintech trends and how it is beneficial to the firms by referring to the following article.
Fintech Trends That Benefits The Global Businesses
There are enormous ways in which fintech is beneficial to the global market. It is one of the hottest industries that streamlines financial procedures, and it makes it more flexible and accessible to use. Still, many updates are coming in the fintech industry that helps people to handle their assets in a better way. The trends are more focused on security, accessibility, speed, and comfortability. These aspects open many doors for businesses to work on and get its advantages in their financial matters.
Let us look into the potent fintech trends that are adding brightening stones to the finance world to make it more solid and adaptive.
Blockchain can be considered as the speeder of financial services. This technology has the capability to complete the transactions in a fraction of time. Its central focus is linked with cryptocurrency affairs to make it more secure from cyber hacking. There is a continuous rise in the adoption of such digital transformation for business growth, especially due to the global pandemic situation.
It develops an entirely encrypted environment where it is next to impossible to make alterations in the process. Let us understand it by putting more insight into it. Consider the financial transactions as the chain comprises a series of blocks. Each block has components that show the cryptocurrency transaction. It is fairly linked with both the previous and upcoming transactions. This makes the complete process more secure and protected.
If an individual tries to make any changes in the earlier transaction, it indeed requires the permission of the authenticating person to do so. This led to the enhancement of the blockchain market that has expanded from USD 3.0 billion in the year 2020 to USD 39.7 billion by 2025.
Adopting this technological trend can benefit the business in many ways. It includes-
- Faster and hack-free transactions
- It makes the process wholly secured.
- Real-time tracking reduces the cases of error determination and reconciliation.
- Improvises transparency and audit of the operations
- Saves costs that were previously spent on intermediate services.
AI As A Universe For Business
Artificial Intelligence is a ubiquitous technology that is continuously spreading its wings in every sector of the business. In its vast range of applications, fintech is one of the portions where AI has made a considerable contribution. Let us elaborate on our conceptual understanding of AI in finance by looking at the figure below
This fintech trend is helpful to companies to understand their customers’ behavioral concepts. It is a complete package that manages fraud detection, provides virtual assistant, and automates various tasks. All these aspects together bring opportunities for the companies to concern their customers in a more applicable way that brings fruitfulness to them.
With the development of AI-based chatbots, customer satisfaction and experience have taken another level. Its 24×7 availability has made the clients’ query resolution faster and straight away. Getting a personalized mode of communication to understand their financial matters is the most attractive trend customers can consider that streamlines their operations. There are varieties of fintech chatbots like Cleo, Penny, Eno, and many more that enhance their human-like conversational channel by adding emoji and attachment features that make their discussion more realistic.
Another key advantage of this trend is its analytical approach towards the data. Unlike humans, that may not detect the irregularities in the data. AI catches out those alterations in the pattern and notifies the respective authority about taking actions against them before the occurrence of a big loss. Performing such security testing is the prime requirement of every financial affair to look for to complete the process without any data breaches.
Reliance On Intelligent Automation
IA is a fusion tech that combines AI, ML, and RPA technologies by leveraging its key benefits to make the processes more intelligent and automated on a rapid stage. It develops an automated culture where with minimal human intervention, the tasks get completed in a fraction of time.
This trend is also applicable in making the internal channel of the company more potent and faster. Organizations focusing on implementing hr management solutions streamline all their internal tasks and improve accuracy and processing speed that enhance overall productivity and efficiency.
The intelligent automation trend in the fintech ecosystem is all about making the process more effective, productive by boosting the decision-making aspect. According to a Forbes report, banks can gain the productivity of about 35-50% by leveraging automation.
The points shown below gives the significance of this trend in the finance sector-
- It automates the bank transfer procedure.
- Allows employees to focus on their primary duties by entirely automating the repetitive tasks.
- Boosts automation of the end-to-end financial operations
- Speedy fraud detection
- Works round the clock
- Enhances customer satisfaction
- Keeps track of updates in regulatory compliances
In this technologically growing era, the millennial generation is ever-demanding to manage all their duties using digital devices only. There is a continuous rise in managing financial matters digitally. The statistical data for the same is as shown in the figure below
A virtual bank expands the global transactions process and opens new ways for purchasing and swapping Bitcoin, Ethereum, and other cryptocurrencies.
This fintech trend completely eliminates the need to reach the physical bank to handle their financial processes. This vanishes the burden of getting your turn in the long queue for completing your banking procedure.
This immensely saves the cost and time of the banking sector that was spent earlier on setting up various branches and allocating authorities for it. With a digital-only bank, your major concern remains with website management.
This online bank is catching the attraction of clients due to its personalized approach, efficiency, accessibility, and faster completion of financial affairs. It is a customer-oriented banking approach where you can open your account by applying online, and after a few verification procedures, you can operate your account.
Such a digital and cloud-based solution makes the data management process more flexible and accessible to the operators. The virtual database reduces the causes for paperwork, making the system more eco-friendly.
Below listed are the catchy pros for attracting global consumers-
- Account accessibility through the website, mobile app and can reset the transactional authentication credentials from the same.
- Barcode scanning, e-wallet, and photo bill payments are some of the easy payment modes they can use for paying bills in a couple of minutes.
- They can get information about their account balance anytime and from any location through a mobile app and website.
- Accurate real-time data analytics to get detailed information about spending and deposited amount in their account.
Fintech is a continuously evolving technology that focuses on making the customer experience more accessible and secure by managing their finance in the best possible way. Fintech trends broaden the virtual payment gateways making them more reliable and flexible for the customers to handle. This leads to many opportunities for the businesses to enhance their clients’ experience by developing various products or related services by leveraging numerous technologies that digitalize their operations, resulting in improving their growth rate.
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