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Fintech or financial technology is one umbrella that embraces all new technologies to fruition and mass adoption. Fintevh has been riding through an interesting journey so far. No wonder why top Industries have been talking about trends that Fintech would be adopting in the coming year.
Fintech has been innovating and capitalizing on the fast-changing customer needs bringing out seamless and multiple ways to manage their money. But even the best technologies can be iterative. Some key factors to remember while on the lookout for new trends in Fintech would be as follows:
#Though people foresee a cashless society the currency system would still remain despite many of the banking sectors adopting new technologies. Loyalties or points generated from transactions will reflect as the new currencies. Loyalties will make sweeping changes with people redeeming their reward points either for saving or claiming free retail items.
#Contactless technology would gain more traction over the others but cards would remain for a long time to come. Though this would be another shift for consumers who are getting used to spending money without reaching into their wallets, the card is still an important tool for transactions and banks will continue to make it a simpler experience by improving contactless technology. Big banks are trying to capitalize on this segment. Other financial institutions will be bringing out this feature with the cards expiring rather than go for a mass makeover.
#2019 does not foresee much of cryptocurrencies or block chains. Blockchain and cryptocurrencies have issues to solve. With a lot of developments bound to happen in this area, large-scale adoption will take a few years. It will be the year of Artificial Intelligence (AI) and Machine Learning, which have clearer applications and benefits. AI will see increasing applications in back-end technology. So even if it will not be visible, it will be pervasive.
#Smaller banks would not be able to meet their bigger counterparts but other disruptive technology can bridge the gap.
#Data breaches will continue and it will remain a cause for concern. Security standards will be scaled up for consumer protection. Controls over card and authentication and freezing accounts are all in vogue now. The introduction of new text messaging tools for pre-authenticating and authenticating transactions will serve as hurdles for fraudulent transactions. Consumers can exercise more control with more sophisticated security measures.
#Banks will become more creative with their real estate. As per a survey conducted by FIS, consumer behaviour is bound to change with respect to branch activity with 72% of the bank communications done digitally. This trend will see a surge with customer demands for higher interest rates and easy to use online services. Again branches will still remain in the year to come but will continue to see creative uses or become hybrid models that will serve as high-end financial centres.
#Though real-time payments may not be transacted through FinTech, the coming year will see great advancements in that direction. Financial institutions and fintechs are moving in the direction to make real-time payments a global entity. While bigger commercial banks will see more real-time payments ramp up, the smaller regional institutions will concentrate more on their capabilities to accept these payments. The smaller banks will have a lot of testing to do in this area as it would not be possible to make huge changes to revamp their infrastructure to enable real-time payments.