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Major Trends Shaping Fintech Revolution

By CIOReview | Friday, March 5, 2021
Justin Smith, CIOReview

Justin Smith, CIOReview

Technological trends in the financial industry will result in better transparency, faster transaction processing, enhanced assistance to the client, and better financial data availability.

FREMONT, CA: Fintech has created a major impact in the financial sectors, from using some of the latest innovations like Artificial Intelligence, Robotics, Biometric applications, Blockchain, Peer-to-Peer lending, and any others. If Fintech has generated a bigger revolution in the financial industry, then there will be subsequent opportunities to thrive in the market. The sector of Fintech is changing at a lightning pace. With each passing day, the world is encountering a radical transformation in the Fintech industry. These changes are important as they affect everything related to payments, money, and banking. Read on to know more.

• Digital-only Banks

Digital-only banks provide several virtual banking services like P2P transfers, international remittance, a contactless card with free transaction fees, and the potential to buy cryptocurrencies. Digital-only banks have gained immense popularity in a short period. It provides utmost convenience to the customers by eliminating cumbersome paperwork, waiting in long queues, and the requirement to physically visit a bank. Digital-only banks will see a major surge in the year 2021. And this surge will cause a drop in the number of people who visit the bank physically.

• Robotic Process Automation

Robotic process automation is a process automation technology that uses software robots or digital workers to automate the tasks. The financial service sector has deployed RPA to cut costs and enhance organizational efficiencies. Financial institutions have adopted RPA digital workers to automate back-end office processes like security checks, customer onboarding, account maintenance, trial balancing, credit card and mortgage processing, and several others.

• Blockchain

Blockchain technology has transformed the modus operandi of the Fintech industry. With this cutting-edge technology, transactions can be done securely. Due to this, banks are readily adopting blockchain technology to use their benefits. Blockchain ensures that the data stored is secured end-to-end along with the minimum risk. Blockchain is leveraged to ensure secure cross-border payments. Blockchain technology has inspired the development of various P2P financial platforms that allow monetary interactions to occur in a decentralized manner. Banks and financial institutions are looking to increase their Blockchain technology investments to mitigate expenses and improve internal procedures.