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 strongestfintech 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 trendsdon’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 presentfintech 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 trendslikely 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

Our CEO has more than 25 years of experience in manufacturing in the high-tech industry. Johannes has worked for 25 years in the semiconductor industry, where he worked for Philips, Infineon, and Sematech in various management positions in process development, engineering, operations, and sales and marketing. While working for Philips, he was an engineering manager in 2 wafer fab startups. And while at Sematech, he managed various international technical symposia. He has built 3 successful digital marketing companies in the past 8 years. His focus is marketing integration, marketing technology, SEO, and inbound and outbound marketing. And he has developed a content creation system that uses the AIDA model to develop content for every stage of the sales funnel. Johannes has experience working with companies in manufacturing, the high-tech industry, process industry, IT, healthcare, and legal industry, and he has published on several trade-focused websites.


Tags

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


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