Fintech has transformed our daily lives with the personalized access to robo-advisors, innovative mobile payment solutions, and instant cross-border transactions. The evolution of these fintech companies has set a trend as its product and services empower consumers and small businesses in ways that were unimaginable in the past. The disruptive innovation which fintech brings attracts significant funding from investors seeking the next big thing.
The potential acknowledged by fintech is immense. Here are some of the major fintech trends that will shape industries globally.
1. Impact of Digital Revolution
The fintech arena is witnessing the impact of digital revolution on multiple levels. It would be interesting to note few latest technology trends in the sector as it is hard for the human brain to pace up with all the new changes taking place. These are visible especially in the complicated fields such as monetary transactions occurring online or at a physical platform and security of the same.
2. Increase of Dependency on Artificial Intelligence
Major developments which are expected to shape the future of fintech sector include artificial intelligence and machine learning. This is increasing owing to the growing need for faster and more accurate style of functioning of the fintech firms. Various solutions have appeared recently in the form of artificial intelligence, mobile apps facilitating easier and faster transactions etc.
3. Rise of Wallet Usage
Digital payment came to picture in 2017 after placating the masses post demonetization. Cashless transaction including e-wallets helped a lot of people to tackle the problem of hard cash. This has set the stage for the e-wallet or digital payment. This trend is likely to be more mature in 2018 as more and more companies turn to the digital side of things, becoming the payment mode of choice for a lot more users. Financial organizations and their services will make purchasing more seamless and stores will permit payments straight from your mobile.
4. Person-to-Person Moneylending (P2P)
Motivated by the intention that each and every person will be able to access to financial services while aiming for exponential growth, these fintech start-ups will come up with newer models for lending, especially in the P2P i.e. Person to person money lending.
5. Banks and FinTech Companies Collaborating
Banks do not look at fintech companies as disruptors anymore. Instead of competing with each other, they are more like partners that pair up to take on the challenges of a new digital India. This collaboration combines the strength of both administrations of fintech companies with the strength and reach of traditional banking.
6. Secured Digital India
Fintech revolution leads to a secured digital country with the rise in digital payments and online lending. However, it also exposes the sector to hackers who are always on the prowl to feed on vulnerable security. Hence, the sector is always innovating to ensure the security of sensitive customer data and information is maintained.
This coming year, people can expect more investment in this space by the government as most cybersecurity measures till now have been reactive rather than preventing in nature. Banks will now begin to adopt additional measures to ensure data security at all stages using a combination of OTPs, biometric authentication etc.
7. Instant Payments
P2P platforms enable clients to seamlessly transfer cash to different accounts, fast and effortlessly. Open banking with initiatives such as Unified Payment Interface (UPI) and Aadhar Enabled Payment System (AEPS) banking will become more ‘open’ in India this year. As a result, the process of carrying out payments and other banking transactions would become quick as well as simplified.
Overall, the fintech sector being the pivot in the economic growth of the nation and start-ups will be seen implementing the technological advancement with absolute enthusiasm. The future of fintech industry is closely linked with the technological interferences that are constructive and meaningful for both the end-consumers and themselves.