A couple of decades ago, many financial institutions transitioned to digital implementations. Eventually, the “digital” term went away and digital-based financial institutions are now called FinTech (Financial Technology). The new sector is rapidly expanding and the recent coronavirus pandemic has proven the importance of digital financial methods.
With that being said, there are many new trends that we will be seeing in the FinTech industry in the coming years and we are going to take a look at some that are already showing up.
FinTech Innovation For 2020 And Beyond
Improved Cyber Security- security is a big concern in the FinTech sector. Identity theft, fraud, money laundering, and business espionage are common risks in FinTech. A major glitch may force thousands of customers to immediately change their PIN to prevent issues. Some customers may not immediately get the notification, which puts their account at a risk. New cyber security methods are being implemented to significantly reduce these risks.
Digital-Only Banks- a major conventional bank has thousands of branch offices. However, with current technology, it’s no longer necessary for people to go to their bank to deposit or withdraw money. Digital-only banks are now technically feasible and they enjoy reduced overhead costs. A big obstacle in many countries is financial regulation, as digital-only banks are still a new concept. It may take years before digital-only banks will be treated the same as conventional banks.
Big Data- with big data, details of each consumer are recorded and used for different purposes. Mobile devices and home appliances will be connected to a massive network, because each has specific identification needs. With big data, FinTech companies can better serve their customers and adapt to their behavioural patterns. It will be easier to detect fraud because each customer is better identified. Fraud usually happens due to identity theft, but big data allows for better authentication. Biometric data and personal behavioural patterns will be assessed by the system for stronger authentication process.
Cryptocurrency and Blockchain- it’s noticeably clear that people are switching to digital money. Cryptocurrency is among the obvious options for online transactions. Mobile payment systems will better support cryptocurrency and blockchain into their system. Some FinTech companies may even release their own versions of cryptocurrency.
Digital Trading Platforms- digital trading platforms will become much more secure and user friendly. In the past, digital trading platforms were designed for experienced traders who understood how to use and take advantage of the digital network. We are beginning to see digital trading platforms that are streamlined for ease of use and that offer more features and benefits for all levels of traders.
CRM- customer relationship management software is becoming more and more popular among today’s small to medium and enterprise level FinTech organizations. CRMs offer a wide range of benefits including:
- More Efficient Business Processes
- Higher Lead-to-Customer Conversion Ratio
- Optimised Product Design
- Shorter Sales Cycles
- Customer Segmentation
To learn more, contact FINOVATION and speak to a FinTech professional today who can answer your questions and assist you with making your business better.
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