Top 10 Emerging Financial Technologies to Know
The term' fintech,' a short version of the word financial technology, has been making rounds in the finance world for quite some time. However, while this aspect is exceptional, its trends are constantly changing. If you love to keep up with the changing trends of the fintech world, then we are sure you'd love to know about the recent ones that have also emerged. If so, hop below to learn about the top ten emerging financial technologies.
The Top Ten Emerging Financial Technologies That You Need to Know About
Here is a list of the recent trends of the financial technology world which you should gain an insight on:
Payment Processing Solutions
Payment processing solutions are the most popular trend in financial technology that has emerged and evolved. Many applications have become top alternatives among payment processing solutions, which many users have adapted to. These payment processors have also helped financial service users to capitalize on the payment solutions through two different identifiers on their phones that enable them to secure their payments when making digital transactions.
Software as a Service
Another emerging technology that has made quite a name in the financial world is the software as a service offering. Through this technology, many popular fintech trends aim at improving access to their financial services to their users. This is also beneficial for new businesses that work on providing speed and flexibility to their users to ensure that they can survive in the already highly competitive business landscape.
Buy Now Pay Later
The buy now pays later, or BNPL, is a concept that has become quite prominent in the financial business. This technology partners with retailers to offer payment services when checking out. Hence, customers can select the BNPL option to provide their payment and personal information, and the BNPL service will then pay that retailer on the spot. The customers can repay the BNPL service provider later based on the agreed-upon payment schedule.
Stable and Progressive Artificial Intelligence
Artificial intelligence has grown a lot and has made its way into several work areas. One such area happens to the financial world, too, and let us tell you that the presence of AI here not only looks strong but also shows a lot of growth. Through the characteristics of AI, many jobs in the financial world can now be done without the involvement of humans. AI can be fed with the necessary data, which it then uses to complete the task quickly and much more effortlessly than an average user would do.
Improvements in Cybersecurity
We cannot deny that while technology has advanced in many forums, so have the cyberattacks. The problems with cybersecurity have always been a concern in the fintech world, given that, at times, millions of dollars are at stake. For years, hackers have uncovered the vulnerabilities in the fintech world and attacked crucial data. However, recent years and the advancement in financial technologies in terms of cybersecurity have shown positive outcomes and a reduction in the statistics of cyberattacks.
The Rise of Blockchain
The rise of blockchain is another emerging aspect of the financial technology world. This technology enables individuals to transfer information to another source much more securely without the need or interference of any other third-party service. It also means that many banks use this technology to handle transactions, monitor funds, and verify the client's personality without relying on third-party applications like PayPal or Mastercard’s. Blockchain technology has also brought about a positive benefit from the conventional stakeholders. This is because many institutional investors have yet to increase their investments, and some also have increased their capital allocation of digital assets.
Cloud Computing
Cloud computing is the best technological advancement, which made its way into the fintech world and many others. While not initially, over time, financial organizations have realized the crucial role that cloud service models can play in their services and work dynamics. This service helps banks avoid problems with non-core operations in data centers and IT structures. It allows the new generation of fintech providers to rely on cloud computing to tailor their specific user requirements based on their needs.
Efficient Collection of Customer Financial Data
Collection of customer financial data has always been a hassle for the banking sector and other financial institutions. However, with IoT (Internet of Things) in fintech organizations, the ease of letting more gadgets interact through linked networks has become increasingly popular. Through this technology, companies can collect valuable customer data while reducing the necessity for human intervention in financial problem-solving, providing reliable data safety, and eliminating fraud.
The Growth RegApps
The RegApps, or regulatory applications, are yet another exciting advancement in emerging financial technologies. This technology helps track and regulate operations in a finance company so much more quickly. While it is relatively new, it is still flourishing, and according to segments, these apps are expected to reach a value of $30 billion by 2027.
Hyper Automation
RPA and hyper-automation are other significant aspects that contributed to the emerging financial technologies list this year. The RPA with hyper-automation ensures it takes a great deal of time from staff and helps shift their responsibilities to core financial tasks only. The RPA and hyper-automation have benefited the banking world significantly and are expected to reach $4.9 billion by 2029.
Wrapping Up!
The world of financial technology has seen a lot of advancement and growth in the past few years. However, 2023 has been a significantly promising year for the fintech world in this regard. If you want to know about the emerging trends in the financial technology world, this article is sufficient for you.
