The widespread use of the Internet and mobile devices has sparked a surge in financial and banking technology growth. Most banks, venture firms, and financial firms are investing in the creation of new solutions these days.
Such firms are either collaborating with FinTech startups or will do so in the near future.
Financial technologies have been used in developing countries for many years. FinTech is very closely linked to business, banking, and financial organizations in the United States and Europe, and this is no longer just a relation, but a symbiosis of technology, finance, and commerce.
Artificial intelligence, Big Data, IoT
These three innovations can be considered FinTech’s three colossi. Without them, modern financial and banking services will be almost impossible to imagine. They allow the creation and implementation of chatbots, virtual advisors, the recognition of voice commands (though this technology is still in its early stages of development), the automation of processes, and predictive analytics (credit rating, fraud monitoring).
Customers’ loyalty has improved as a result of companies embracing beacon-based IoT technology. Overall, AI, BigData, and IoT are expanding the range of services and companies available to consumers who have never tried them before.
However, the primary goal of implementing these innovations is to provide personalization, transaction protection, a personalized approach to service, time savings for consumers and businesses, and accurate feedback. These innovations are present in all main developments in the fintech industry, in some form or another.
Authentication and recognition approaches that were previously unattainable are now possible thanks to modern technology. First and foremost, we’re discussing biometric methods, which include a computer system recognizing an individual based on their face, retinal pattern, speech, or fingerprint.
Let’s take the case of Amazon and its Amazon Go self-service stores as an example. The customer must first download the app to his mobile, after which the store will invite him to join. There are no vendors inside, so you can take anything you want off the shelves and leave without waiting at the checkout.
The computer system sees what the person took, estimates the final cost of the purchase, and automatically withdraws the required amount from the account.
In the next ten years, how Fintech will look?
Experts predict that in the future, the following Fintech developments will emerge:
Increased use of mobile devices for purchases and payment goods.
KYC, biometrics, behavioral recognition, and authorization are all part of the KYC process.
State regulation and fintech sector regulation are evolving.
Attempting to bring payment and service ecosystems together.
APIs and open banking
Advanced voice control systems are becoming more popular.
5G and cloud computing, as well as machine learning-based predictive analytics.