After the outbreak of the coronavirus pandemic, the development of financial technology has accelerated. Fintech’s growth is expected to continue as more companies migrate online and customers respond to using fintech solutions to simplify financial transactions.
From retail and banking to financial consultancy services, fintech will begin to change the economy in the coming months. In 2021, these are the most well-known fintech developments.
1. Increased operational digitalization.
Due to the pandemic’s intensification, the banking sector has been continuing the phase of digitalization of operations since the first months of 2021. Customers who turned to fintech companies for easy solutions were the subject of the first wave of digitization.
Traditional financial sector players are now faced with the task of consolidating and automating mid-office and back-office processes, which is a far more complicated, time-consuming, and expensive method.
2. Automation of robotic processes.
Robotic process automation, or RPA, is the use of software robots to automate repetitive routine activities that are typically performed by knowledge workers. Despite the fact that many workers were able to operate remotely during the pandemic, the coronavirus epidemic prompted businesses to search for new ways to save money. Many businesses would adopt this strategy if robotic process automation will save money on human resources, minimize fraud, and reduce processing errors.
3. A wide range of mobile payment methods
The demand for applications such as mobile payments has increased dramatically as a result of social distancing. Experts predict that there will be even more mobile payment options next year. Companies must be ready to consider as many payment options as possible, particularly if customers want them.
4. Financial Institution Partnerships
This is not a new trend. Fintech firms, on the other hand, have shown all of their advantages during the pandemic, including process versatility and the ability to satisfy evolving consumer demands in the modern world. As a result, banks aim to form a partnership with fintech firms, licensing their innovations and leveraging them to benefit and extend their client base.
5. Focusing on cost savings
To deal with the increasing number of digital customers, financial institutions must make the most of their current technology systems and staff while also dealing with the issue of profits due to low profitability and demand for loans. A new wave of inter-enterprise financial technology cooperation will emerge as a result of this emphasis on cost savings.