FinTech, the acronym of financial technology, is the talk of the town in business circles. It has brought significant changes to the financial industry, transforming sectors ranging from banking to financial advisory services.

To make you aware of the revolutions FinTech has unleashed in the financial arena, we are outlining the following ten technology trends that are the forces behind the Fintech revolution: 

Digital-Only Banking  

When banks virtually provide global payments, peer-to-peer transfers, contactless MasterCard along with no transaction fees, and opportunities to exchange and purchase bitcoin, ethereum, and various other cryptocurrencies, then the financial sectors can gain quick movements. 

Customers can save valuable time with online banking as they need not wait in long queues in banks or do any paperwork. 

With the predominance of digital-only banking, physical visits to banks have dropped significantly. Due to the notable benefits, many banks have adopted the digital mode to allow customers to bank from home. Moreover, digital banking has other benefits--quick bill payments, feasible cost management, real-time analytics, reset pins from home, and quick balance review.

Biometric Security 

Mass internet usage has unleashed the use of smartphones among people, leading to the popularity of digital financial services like mobile banking.

Although mobile banking is a convenient practice, it has also opened the door to fraud and cybercrimes, increasing daily. As such, digital banking has led to many security-related issues.

Therefore, banks should take adequate security measures, and adding biometric systems is one of the best ways to guard customers against security threats.

With biometric security systems, customers can stay assured that their personal and financial information is safe. Furthermore, as biometric technologies, like facial recognition and fingerprint identification, are parts of modern-day smartphones, banks can quickly implement biometric security systems.

But, there is more to come. In the future, contactless biometric solutions will come and eliminate the usage of touch-based solutions.

Robotic Process Automation (RPA)

RPA is a technology that automates some tasks that humans do through digital robots or bots.

The advantages are that RPA does away with the need for resources to perform the tasks and maximizes accuracy.

Many banks have already implemented RPA in customer onboarding, security checks, payment reconciliation, account maintenance, etc.

RPA implementation in finance involves the usage of robots that can execute tasks quickly and efficiently. As such, humans can concentrate on more productive work.  

Blockchain

Blockchain has brought significant changes to the financial industry. But the fact remains that it was designed to handle cryptocurrencies.

The technology ensures that each transaction is secure and safe. Blockchain increases transaction security by decentralizing the verification process of transactions.

Due to high security, many banks have started implementing Blockchain, ensuring end-to-end security to transactions, minimizing risks. 

Banks can also implement Blockchain during cross-border transactions.

Artificial Intelligence (AI)

AI is likely to make its way to the operations of financial institutions, which anticipate that AI will reduce their operating expenses significantly.

AI will also help financial institutions manage security. They can then identify threats and fraud risks so they can guard their customers against cyberattacks,

Financial institutions can become more customer-centric because AI allows implementing algorithms to record customer interactions accurately.

By now, AI has already proved its usefulness to the financial sector through Chatbots. And with time, the financial industry is likely to use AI for broader purposes.

Voice-Enabled Payments

Voice assistants--Siri and Alexa—have shown the usefulness of voice technology in our daily lives. And the good news is that you can extend their benefit further to make payments. When more and more people use voice assistants for making payments, voice-enabled payments might become the most preferred payment solution, pushing back the traditional payment methods. 

Open Banking

You can regard open banking as the fusion of banks and FinTech that allows data networking among different financial institutions. What makes open banking significant is that it makes information sharing among various financial institutions easier through the online mode. Moreover, it ensures the security of data released by financial institutions. 

With open banking, users can manage their financial accounts securely. It also allows users to have a consolidated view of their financial accounts. Thus, open banking makes account management easy and can help users to create wealth efficiently.

Virtual Cards 

The popularity of using virtual cards is growing among people. The popularity has arisen due to its high security. Frauds cannot easily steal information from such cards. Another advantage is that there is no need for users to worry about disposing of the cards after they expire. 

With such cards, users can better manage their expenses. And many companies have already given their employees virtual cards.

Autonomous Finance

Autonomous finance involves machine learning (ML), AI, and automation to enable users to undergo smooth experiences on mobile portals without requiring type details manually. A virtual banker gets created on the portal that manages and analyzes customer’s risks, portfolios, and investments. An AI algorithm reduces the risks of human errors by recommending the best savings and investment options for the customers.

Cybersecurity

With the predominance of online transactions and digital processes, cyber threats are also increasing. That is why financial institutions should implement prudent cybersecurity strategies to guard their costumes against the risks.

Conclusion

FinTech has brought a remarkable revolution to the financial sector. You can reap many benefits by being part of the FinTech revolution, which is becoming stronger and stronger with new technologies. So, if you are yet to explore the FinTech space, do not delay any longer. Get started today!