To put simply, Fintech refers to businesses that use software solutions for providing financial services to end customers. It includes payment processing, tools for managing as well as tracking personal finances, stock-trading tools, billing software, investment platform, etc.

While these are the few things related to the Fintech landscape, there are still lots of aspects that are uncovered.

In order to explore what Fintech holds for the future, experts are trying to figure out the trends and how they can be evolved in the upcoming time.

In this article, you will find some of the upcoming trends in the Fintech industry that are going to emerge in 2019.

1. Digital-only banks

When was the last time you set your foot in a bank? Around a few years ago, right? After all, most of the banks have gone digital, and now you can do everything just through your mobile device. But get digitized is not it, now even digital-only banks have entered the marketplace.

Digital-only banks are especially popular among millennials as it allows them to perform any bank related activities without stepping out from their comfort zone.

According to a recent report by The Financial Brands, the percentage of bank visits will be reduced by a whopping 36 per cent between 2017-2022.

Moreover, even desktop banking will also get affected significantly while mobile banking will grow 121% high in the same period.

2. Digital assistants

Assistance is a crucial part of any financial service provider. While Google, Apple, and Amazon assistants have already brought a new revolution, virtual assistants have also replaced human assistants working in the call centres.

These virtual assistants are used for responding to the customers’ problems, providing various information, calculating loan EMIs, and also assisting if there’s an issue while using digital services.

These virtual assistants or chatbots work great when it comes to assisting customers and providing them with instant solutions around the clock.

According to a recent report, by 2020, it is expected that 85 per cent of consumer interactions will be handled without human agents.

3. Going cashless

In the past few years, cashless transactions have started to take over the finance industry, and this may continue for a few more years too.

With the increase in the number of smartphone users as well as internet consumers, people are bending more towards online transactions over cash payments.

This trend has just not happened in India; after Prime Minister, Mr Narendra Modi, in 2016, banned large denomination bills for eliminating fraudsters and black money but even other countries.

The list includes countries like Sweden and other Scandinavian countries, which are trying to promote cashless transactions.

4. Blockchain

The Blockchain industry is a trend that has gained a lot of popularity over the past few years.

Just like Blockchain has significantly revolutionized many industries, it is also turning the Fintech industry for betterment.

According to a survey done by PWC, around 77 per cent of companies providing financial services will adopt Blockchain by 2020. Major Fintech companies are convinced that Blockchain can revolutionize the Fintech industry.

Why?

Because the biggest issue with Fintech companies is to make customers trust them, and the trust evokes when the companies are providing safe and secure financial solutions.

There are some ways to secure Fintech applications. One of them is using blockchain. Blockchain-based solutions are cheaper in terms of development and produce highly safe and secure solutions. This can help financial companies to build trust and have long-lasting relationships with their customers.

5. Biometrics

When a new technology comes, it comes along with some goods and bads too. When talking about the Fintech industry, two of the major issues related to it are cyber attacks and security threats.

Developers are not only trying to develop Fintech applications but are also working on developing solutions for security threats at the same time. And one of such solutions is Biometrics.

Scanning the iris, fingerprint scanner, voice recognition, and facial recognition are the most popular Biometrics indicators.

It’s not only safer but also provides users with faster and more pleasant experiences. After all, now you don’t need to remember tons of passwords, but instead, you are the password for everything.

6. Connected cloud services

Cloud computing enables bankers to connect directly with their users. With the emergence of the internet and cloud computing, now banks can store, manage, and access information from anywhere in the world anytime without going through any unnecessary hassles.

The evolution of cloud computing has allowed banks and Fintech companies to focus significantly on the customer-centric approach and digitizing trading. Moreover, cloud computing is also increasing the turnover of financial institutions by incorporating profitable cloud-based solutions.

In reality, to get all these benefits, you should have an idea of the cost to make an app for Fintech technology. It will surely help you in the long run

Final words

While technology has significantly influenced most of the industries, banks and finance have still a lot to explore. However, innovations like Blockchain, biometrics, and AI have put the foundation of a revolution that is soon to take place in the financial industry.

So, it’s mostly for startups to understand what they need to consider while starting a business in the financial industry.

In order to stay relevant in the Fintech market and have the upper hand over your competitors, it’sits mostly for your business to cope up with the emerging trends.

As startups are already under great pressure for innovation to attract a huge user base and have a long-lasting relationship, the adoption of new features to make the customer experience better has become a matter of great concern.

The trends, as mentioned earlier, can hugely benefit startups for developing Fintech applications that can help their business to thrive in the current landscape.

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Image Credit: Paul Fiedler

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