How FinTech Services will Grow and Dominate 2021
In 2020 we saw the world come to a cold stand-still, but little did we see a rising star on the horizon. Powered by the Internet of Things (IoT), the world embraced Fintech services with open arms. Covid 19 has truly changed the landscape of how we envision financial transactions, and it turned out to be a blessing in disguise for the industry. Social Distancing has made the global landscape ripe for innovative digitization.
The upsurge of Fintech activities within the global spotlight has made it a prime player with over $647 million invested in key areas such as mobilized payment gateways, digital currency, peer-to-peer lending, and distributed ledger technology. As of 2019, start-ups and fintech companies had been driving growth through increased investment which has scoped out to $35 billion globally and is projected to reach $26.5 trillion by the end of 2022 as predicted by FinanaceOnline, achieving a ground-breaking feat from just a zero-sum game.
Way Forward: Sustainability and Economic Regeneration
Given our renewed understanding of the urgency of Climate change, Fintech integration has revolutionized the landscape of financial operations into an environmentally approved approach. The global aim is to strengthen mutual trust, wealth management, and capital markets by adapting technology like AI & Machine Learning, Data Analytics, Blockchain, and Cloud Computing to help heal the economic division left behind by the pandemic.
The futuristic benefits of Fintech Services can be remarked by the following;
- To bring about greater financial inclusion through reduced costs.
- To scale long-term investments with mobilized domestic savings.
- To disrupt traditional procedures of protecting, managing, and transferring financial risk.
- To make real economic decisions by collecting, analyzing, and re-distributing information.
- To level the playing field of corporate financial markets.
Emerging Trends of Digital Financial Services
Consumer behavior has undergone a rapid metamorphosis since 2020 though emerging trends and habits have always been a piloting factor that facilitated the growth of modern fintech services we use today. Robotic Process Automation is a trend at its prime. The Bank of America boasts of an outstanding AI named Erica who eliminates 95.5% of errors while guaranteeing a 100% ROI to the bank, in 2020. AI and ML algorithms will continue to innovate throughout 2021 with promising improvements to the banking sector with help from biometric authentication, AI solutions, and even voice banking facilities. RegTech, a relatively new trend, functions as an ID Theft Resource Centre which detects phenomena like cyber-attacks and data breaches. A Canadian startup called Mind Bridge leverages this technology to integrate both accounting data and domain info to regulate all matters of business.
Fintech’s list of inventions will continue to grow longer till the end of time as more unknown sectors emerge which are ripe for investing and innovating.
Let us place the innovation behind the growth of financial technology under the microscope at the FinNext Conference & Expo 2022 USA and rediscover new ways to break the glass barrier and reshape the future of finance. Interested? Register today.