Trends in FinTech That Are Here to Stay

November 3

Long-term FinTech trends will generate real value, rather than perceived value. Here’s an example of something that generates wealth without value: a pyramid scheme. But pyramid schemes implode under their own volition, and people lose lots of money. Bernie Madoff made off with billions from a pyramid scheme; but he went to jail, and what money he stole is no longer his.

Read on: IoT and the Evolution of Smart Banking

Many schemes generate wealth without value; but at their height, they implode. In contrast, that which generates true value launches from a firm foundation. That foundation is something which legitimately contributes to society. Here, we’ll focus on FinTech trends poised to pass the test of time owing to inherent value.

Barring End-of-the-World Scenarios, Digital Banking Remains

Digital banking brings countries, corporations, and people together conveniently. You can transfer substantial funds between banks in different regions via smartphone. Sure, the technology involved is a bit complex; but it’s the difference between spending a half-hour driving to and from the bank, and spending ten minutes taking pictures with your smartphone. This tech is increasingly convenient and represents one of the strongest fintech trends to invest in for upgrading operational tech and exploring new developments.

Blockchain Tech Has Value in Facilitating Easier Transactions

Blockchain is the engine of cryptocurrency. Also, it can make many big-ticket transactions easier. However, there is a learning curve regarding setting up a bitcoin wallet and understanding how to deposit and withdraw funds. Once that’s done, transferring assets is as simple as a few clicks of a mouse.

The value of cryptocurrency and blockchain generally has more to do with simplifying transactions than involved technology. Blockchain is revolutionary as a fintech trend; in fact, you might call it the trend–but its value is abstract and collateral. The real reason blockchain tech is valuable is because it decentralizes banking and facilitates easier transactions both locally and internationally.

Keep reading: The Role of Fintech in Banking: What Does the Future Hold?

RPA, AI, and ML: Hefty Potential, Though a Mild Risk

Robotic Processing Automation, Artificial Intelligence, and Machine Learning are RPA, AI, and ML. RPA saves time and money by expediting tasks that can be automated. AI and ML increase RPA effectiveness collaterally. AI in the form of chatbots can make it seem like there are always employees available to answer customer needs.

ML makes chatbots increasingly human. RPA can employ AI and ML where appropriate in terms of security to manage diverse financial accounts. Buying and selling on the stock market could be, as a hypothetical example, automated via RPA, and optimized through AI leveraging ML. Expect RPA, ML, and AI to become increasingly influential.

However, there is some risk. Automated processes involve software that can be hacked. While enhanced security does much to help avoid such circumstances, automation yet represents vulnerability “surface area” expansion. Such solutions should only be adopted with tech professionals available to assure associated fintech trends don’t expose your financial company to unnecessary risk.

Increasing “Contactless” Payment from Ecommerce

Ecommerce makes it possible to browse global stores, buy goods, pay for them, and have them delivered right to your front door. This is one of the most relevant present fintech trends: online remote payment, or “contactless” commerce.

Read more: What AR and AI Mean to Modern Businesses

Working with New Technologies Poised to Expand

Notable fintech trends likely to remain well into the future include digital banking, blockchain tech, RPA, AI, ML, and “contactless” payment. To assure your financial institution is maintaining competitive viability and security, it makes a lot of sense to work with tech companies that understand these trends and can help you adopt those which best match your operational needs without exposing you to risk that isn’t necessary.

Johannes Beekman

About the author

After 25 years in engineering, Johannes Beekman founded IoT Marketing with the goal of helping companies bring wide-scale awareness to their inventions. He received a Master of Science in Physics degree from the Eindhoven University of Technology, and a Master in Business Administration degree from the Wharton School of the University of Pennsylvania, and started his career in the semiconductor field. Johannes pioneered two successful wafer fab startups for Philips Electronics; one in Europe and the second one in Asia. And served as Senior Program Manager for Sematech, where he provided solutions for semiconductor industry-wide product improvement and cost reduction challenges. Johannes has also published articles on several trade-focused websites.


banking, blockhain, contactless payment, digital banking, finance, fintech trends, smart money

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