While 2020 was an unprecedented disruption, 2021 was said to be a year of a remarkable adaptation as well as transformation. As opportunities are opening up in the FinTech industry, there are a few trends that are going to continue through 2021 and may also drive the financial services industry forward hereafter.
With UPI payments skyrocketing, the online brokerage system had gained momentum in 2020. The reason is that most people have been forced to switch to online banking in order to socially distance and stay safe. This also pushed the same people to migrate towards FinTech Solutions in order to manage their finances.
As an overview, hereare the top FinTech trends for 2021:
More customer-centric applications in the industry: the financial industry needs to focus on delivery and an extremely high quality of customer experience. This is the only way that they can stay at par with the competition that is increasing by the day. While customers are increasing their interaction more on different channels, the need for financial industry to develop more powerful solutions cannot be ignored anymore.
Semi-permanent basis remote working: Almost all the recent surveys have shown that more than 50% of the employees, even after one year of Covid-19, are still working remotely and also on a semi-permanent basis. This will require the organizations to develop digital tools. These tools not only need to provide the facility for an employee to work remotely, but also provide them a secure access to all the files and also facilitate collaboration tools.
Big Data management for good data Insights: All the data that is collected by the financial organizations is usually unstructured. To identify the important trends and also potential risks for decision-making, this unstructured data needs to be processed using powerful tools that are backed up by Analytics.
Banking Partnerships with new Applications: Either by incorporating banking functionality into new applications or by building features into already existing banking systems, FinTech developers will be playing a key role in helping Financial organizations benefit by partnering banks with technology.
Process automation to reduce costs: All the backend office processes like customer on-boarding, any kind of credit card approval processes and various other security checks are all automated using robotic processes that will increase the efficiency of the financial services especially in the key areas like customer service.
Blockchain technology for decentralised finance: FinTech industry was never the same after the introduction of blockchain technology. This transformation has allowed transactions to be made safely and securely. Almost fifty percent of all the banking representatives believe that blockchain technology will be the biggest impact on banking in 2021.
Artificial Intelligence for Fintech apps: At a global scale, banks are looking to incorporate artificial intelligence in all of their operations. This is believed to reduce about 33 percent of all the bank’s operational expenses by the end of 2030. This indicates a savings potential of up to one trillion dollars, just by employing artificial intelligence.
Finding apps for branchless banking: Almost two billion people globally in the developing nations are still unbanked. An interesting fact is that these regions have high technology accessibility as all their users have mobile phones. This could be a perfect market for FinTech apps and all the branchless banking.
Artificial intelligence in digital banking: This has allowed the customers to avail themselves of all the services from their Banks without having to physically visit the banks. This has been the biggest advantage and also necessity for everybody globally during the lockdown.
Post covid-19 shopping is equal to e Commerce: Almost 90% of the population around the world who have access to online services have started actively incorporating E-commerce as the first destination for any kind of shopping. This is the biggest and strongest destination for all FinTech marketing and solutions.