Digital Banking and Fintech Trends in 2021
Fintech is an industry that has continually been on the rise as it is rapidly driven by new technologies. When the covid 19 pandemics hit its blow across all nations and industries, Fintech has proven to stand tall amidst the crisis.
Unsurprisingly, digital payments, online transactions, and other types of virtual financial services have become the norm. This is because consumers have to depend more than ever on the financial world for survival amidst crises.
The best digital bank has been able to leverage cutting-edge technologies to meet customers’ demands. Although these trends might have been to meet the 2020 challenge, they are set to disrupt the industry in 2021 and beyond.
While digital banking was already gaining ground, especially among the younger generations. The pandemic only but accelerated the process. Many consumers across different ages have hopped on board as a result of bank closures and less physical contact.
People can access a range of financial services and perform important tasks right at the comfort of their homes with few clicks on their smart devices.
The pandemic no doubt has impacted digital banking in a positive way as the market experienced a boom. Digital banking becomes a necessity rather than an option and this is a trend that is set to continue.
Open banking is making a head-way across the globe, bringing changes to online businesses and the financial services market. With the emergence of fintech startups, competition has significantly increased in the financial space. Hence, open banking is empowering consumers to take control of their data.
Open banking is creating more opportunities for third-party financial institutions. They can now access the user’s banking data through the use of APIs in order to provide highly profitable investment options.
This means consumers can tell banks to transfer their data to other financial services. This will enable them to compare financial products or use their products more easily and consumers are keying into this.
Bank fintech collaboration
No man is an island and this saying holds true in the financial world. Traditional financial institutions and banks are teaming up with various fintech companies.
Fintech companies bring in innovative models and technologies that promote convenience, agility, and speed to banking operations. At the same time, banks are coming up with new ways of doing business. Plus, expansion to new markets and providing a wide range of services to their customers.
Hence, banks are no longer seeing fintech as competitors but as assets in serving the customers better. This collaboration is a win-win for both fintech and banks. And continued collaboration between fintech companies and banks is essential for the future of the financial services and technology sector.
The convenience of banking anytime and anywhere only with few taps on mobile phones is given mobile banking a competitive edge. This is one thing that is set to take over all other banking channels put together.
The 2020 pandemic of social distancing, lockdown have got consumers aggressively turning to mobile banking.
You no longer need to wait in long queues before conducting any financial transactions. Moreover, spending time dealing with paperwork is gradually becoming a thing of the past
Biometric technology is taking security measures to the next level through the use of users’ biological characteristics as passwords. Facial recognition and fingerprint authentication are the most popular multi-biometric identification and enhanced security.
The age of digital and mobile banking has brought about security concerns. Cybercrimes keep rising daily and improving cybersecurity in financial services becomes an absolute necessity.
Biometric authentication becomes the tool in ensuring maximum security. It is highly effective in securing sensitive information and ensuring it’s only the right person accessing the information or data.
Autonomous finance is another type of financial experience that is evolving. Thanks to advances in AI that are allowing machines to do much more than humans can do. Juggling Between paying utility bills, insurance, subscription renewals, and other finance basics have been made easy.
These intelligent machines are helping consumers to automate these tasks, make decisions and free up time. This means human tasks have been automated and there are fewer human inputs in the decision-making.
The financial industry keeps growing and opportunities are endless. As consumer demands are rising, financial companies are also keeping up to the pace to provide the best customer experience. These trends are set to change the financial world and would in fact, soon become the norms.
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