As the COVID-19 pandemic disrupted all businesses across industries, it created amazing opportunities for FinTechs. The industry is undergoing significant changes. The pandemic has required social distancing or contactless deals. Even after the pandemic is over, FinTech is expected to continue transforming the economy. So what trends in FinTech are worth paying attention to?
The role of technology in the financial industry
Technologies definitely have an impact on the world of finance, which, after years of peaceful expansion and development, entered a period of rapid change. As a result of COVID-19, the entire financial industry has been forced to operate more efficiently. It is focusing on customer needs and the most profitable areas of activity. At NATEK, we could observe an increased demand for IT services from our partners in Finance and Banking. What is more, in response to the lockdown and the resulting need to introduce remote work, companies had to implement digital solutions.
The factor defining the company’s growth and having the greatest impact on generating revenues was no longer winning new markets but the effective digital transformation. This sometimes meant a radical rebuilding of the operating model.
According to data collected by Accenture, as much as 80% of banks’ revenues in 2021 will come from services provided with the participation of new digital business models. Therefore, the role of financial technologies has become even more important than before. They were ready to offer innovative software and help use the technological potential of many companies.
FinTech – Revolution is coming
In recent years, FinTech has become a revolutionary field in the global industry. It has transformed many business areas, from retail and banking to financial advisory services. The growing role of FinTechs has significantly led to a new era of digital payments. It changed the way people trade. Many FinTech applications are critical across industries including stock trading, transportation, and the smart city, among others.
By using technologies such as artificial intelligence, biometrics, payments, cryptocurrencies and others, FinTechs are increasingly able to offer their customers more convenient, streamlined services. As a result, 82% of traditional financial organizations plan to increase their cooperation with FinTech companies over the next five years for fear of losing customers if they do not.
FinTech trends to follow
As FinTech is experiencing its rapid development and its applications are increasingly becoming part of our everyday life, it is worth following the trends that push this new technology into the mainstream. Let’s take a look at the key game-changing trends in the financial technology industry!
ARTIFICIAL INTELLIGENCE, MACHINE LEARNING AND ROBOTIC PROCESS AUTOMATION
AI and ML have significantly influenced and even changed the financial services framework for end-users. These technologies allow to process information much faster. They also help provide immediate solutions that help significantly reduce the risk and likelihood of fraud in financial organizations. And one of the biggest technological trends in the financial industry using AI and ML is Robotic Process Automation. RPA automates almost all financial processes that require automation: customer onboarding, verification, risk assessment, security checks, data analysis and reporting and compliance processes. As AI advances, RPA systems also observe, learn and automate workflows, placing conventional financial institutions such as banks a little closer to next-generation FinTech services. Ultimately, AI, ML and RPA save finance companies a lot of time and budget and allow them to build even more personalized customer experiences thanks to the AI-powered chatbots that offer self-help solutions to end-users.
NATEK team of experts has been using RPA to automate processes, improve performance and increase profitability for one of our clients – one of the biggest brands in the banking industry.
Blockchain is a new security measure that will dominate the FinTech world and revolutionize the world of payments. The implementation of blockchain by financial institutions not only speeds up the entire process. It also, above all, increases the security of transactions. It has multiple verification points, making it an ideal security solution. Blockchain guarantees the safety and accountability of the product and service. It is also cost-effective as it enables peer-to-peer transfers over a decentralized network, which allows bypassing payment intermediaries.
To develop and secure trustworthy solutions for our Customers’ transactions, NATEK team uses Block Ledger – blockchain-based financial products intended to disrupt the accounting and auditing industry.
Banks and financial institutions process more and more data every day. This requires a large capacity that allows for quick and safe storage and processing of this data. Big Data technology allows companies to work with large volumes of transactions and records and ensures a personalized and secure banking experience. Moreover, Big Data technologies enable to collect as much information as possible about their customers. This allows to better monitor risky investments and creditors to gain an in-depth understanding of individuals’ risk profiles.
At NATEK, we use Big Data technology in many of our projects, especially those related to customer support. Our solutions help our Customers improve productivity and efficiency, shorten response times, and increase effective workload management and billing accuracy.
These were only some of the trends in the development of FinTech that will become mainstream. We believe that the advancement of modern financial technology won’t stop there. One thing is certain: the near future and the perspective of the next few years should belong to companies operating on the border between technology and finance.
Are you interested in learning more about FinTech trends and how do our experts implement them in projects for our clients? Stay tuned! We will be sharing more information very soon! You can also check out our other articles on Virtualization and Ansible in Cloud Automation for more ways to drive a successful digital transformation.