admin The technical revolution has made the adoption of its core tools in all business sectors indispensable. It is impossible to conceive of a market segment that has remained immune from the tidal waves of this revolution. The importance of tech in the fintech market cannot be overemphasized. The boons of fintech has helped billions of clients around the world to streamline their monetary navigations of funds and investments on mobile platforms.
The pandemic restrictions and the bygone year has demonstrated the salience of this tech in the world of finance. It is important to cognize how the fintech sector is evolving with the launch of new technologies that have the potential of further enhancing its ability to make a difference in the lives of clients. Listed below are 6 salient technological trends that are guiding the fintech market in 2021:
- Blockchain
One of the most formidable tech tools to emerge in the course of the by-gone decade is the blockchain technology. This tech is already disrupting the financial sector and is expected to gain further ascendency in the fintech world. Blockchains help achieve ultra-secure payments and transactions, while simultaneously eliminating the need for intermediaries. This helps slash costs to a significant extend.
This form of decentralized tech has helped fintech firms become ace players in the financial sector. The firms that have adopted this tech have invariably opted to make their financial offerings like futures, contracts, and insurance plans much safer than their competitors.
- Robotic Process Automation
Another formidable development in the field of tech that has been embraced by the fintech world is the growing domain of Robotic Process Automation (RPA). Fintech firms are expected to adopt RPA for internal processes as well as customer service automation.
RPA excels by basing its operations on ML and AI enabled tools that automate a variety of tasks. For the fintech market this includes identity verification, fraud detection, regulatory compliance, online loan processing, and much more. More RPA-enabled tools are being used to enhance CX and provide streamlined assistance both on the virtual and real-life platforms by the fintech firms.
- Adoption of APIs
API or Application Programming Interfaces are dubbed as shortcuts to building new applications or adding new features to existing platforms. APIs are geared towards making developmental stages of applications easier. Over the course of the last two years, bank-developed APIs have become relatively open and their developing institutions have also opened themselves up to pursue collaborations and partnerships with other parties.
Such a scenario paints a world of opportunity for the fintech firms. They can now share this tech and consequently expand their networks. Already projects -like the Open Bank Project- have secured accessed to over 350 different APIs, forging the path to this collaborative development.
- Biometric Systems
Since security is a top priority for all fintech firms, leveraging biometric security systems will be inevitable for most if not all such enterprises by the end of 2021. A significant section of the fintech market has already embraced this trend. The remaining few will soon follow suit.
The onus managing, storing, and securing a client’s sensitive dataset lies with the fintech firm. Biometric protocols help create an extra layer of security that foils any attempt made to misuse this data. Mishandling of such sensitive datasets can be damaging for a fintech firm. Thus, the prudent solution going forward is to invest in a potent biometric security system.
- Voice Bot
Another area where robotics can be harmoniously adopted for the growth and success of fintech is the development of voice bots. Chatbots have been seminal in making a lasting impact on all sectors, including the world of finance. However, now the need is to take a step further from the usual chatbots.
Fintech firms can use voice bots to overcome language barriers quite efficaciously. This will invariably boost customer satisfaction. The localization of end-to-end interaction helps create automated solutions for customer assistance and management segments.
- Cloud Computing
This is a tech solution that is already well-integrated into the world of fintech. However, in the upcoming months of 2021, we can expect it be more creatively incorporated into the fintech operational models. While the cloud has been used by fintech firms to store and manage large datasets, it will now be used in more diversified ways to cater to the expanding client base of these firms.
Data analytics used by the cloud-empowered fintech firms helps them ideate personalized solutions and automate processes in a much more streamlined manner than their traditional financial counterparts. This is expected to further grow in the upcoming months of the present year.
The challenges of the current era are multiple and equally varied. To overcome these obstacles and establish dominance, a fintech firm will need to capitalize on the aforementioned tech trends that are defining the market segment in 2021. To embody the avowed agility of the segment, fintech firms need to maximize on the astute capabilities of these revolutionary technical tools to deliver notable performance to customers.
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