Top Fintech Trends 2021
The fintech industry is the place where it’s necessary to stay updated with the current trends. If you miss out on a single thing, you might be at a big loss. As financial things are the most important thing in people’s life. There is no way you can compromise things here. So, it’s necessary to stay updated here.
With that being said, we are here with the top fintech trends of 2021. These are the trends that will continue in 2021 and even further. If you are in the Fintech industry, you should surely focus on these. In the same way, if you are using one of the services of Fintech, you might also think about focusing on these things to achieve more.
Digital-only Banks
This might not sound like a great option for some people whereas many people will be happier to see this. Fintech’s most important challenge is to go with digital-only banks. The use of digital technology is increasing day by day. Many people are utilizing it at the maximum. SO, the next goal is to have digital-only banks. Many banks are working on this. In many countries, digital-only banks have already started serving and it turns out to be the best.
People are interested in using digital services rather than using physical banks. It’s a big challenge because people are still using the cash and the physical banks to do the transaction. So, when this specific set of people will shift to the digital platform, banking will be much easier. Till then, it’s hard to get to the place where all the people can utilize the Digital-only banks.
Small Business Focus
It’s important to provide financial services to the business. If more and more businesses start using fintech services, even people will start using the services. Retail customers are already using the fintech platforms to make the payment or they are ready to transfer the money online. However, there are many small businesses where it is hard to accept all types of payment methods.
Therefore, the main aim of the fintech industry is to provide better services to the people who are doing the business. If they can offer a better and robust solution to the businesses, it will automatically motivate many people to start using the services as the businesses will offer more discounts to them.
So, this is the second trend that will go into the sector of Fintech.
Chatbots
Of course, chatbots are already floating around the banking industry. It’s no secret that chatbots are helping the customer in many things. Now, customers can ask many things to the chatbot and they will answer most of them. However, there are still many things that are not done by a chatbot.
For example, it’s not possible to send the payment via chatbot. Well, we won’t say that it isn’t possible but many people are afraid of sending the payment in this way. There are some of the challenges faced by people that need to be solved. Some of the AI-based functionality can go wrong in some cases. So, the fintech will have to develop a more robust solution for the people who want to transfer the payment using the chatbot.
Therefore, this is the sector where some amount of work is needed which can brighten up the future of the banking sector too.
For more information about chatbots please check our pervious article.
Smart Contracts
Blockchain has been growing at a tremendous speed. Everybody loves the idea of decentralization and removing the middleman. One of the major components of blockchain is smart contracts.
Smart contracts allow the people to automatically create an agreement and then it will ensure that the work is done as per the contract. Once the work is done, it will automatically release the payment and work will be marked as complete. In this way, one can easily use the smart contract to do all the things.
One of the things that you need to do in the smart contract is the payment. That’s where the fintech industry comes in. Fintech platforms can be integrated with smart contracts. This will make the entire blockchain easier. With the growth of blockchain, this will be the most needed thing as people are in love with the blockchain and smart contract, people want more ways they can make the payments.
Automation
Just like every other industry, automation is taking over everything. Automation is needed much when it comes to the fintech industry. People are looking for automated tasks here. Today, some things can be automated which is helping a lot of people.
For example to start with, today, people can make investments automatically without having to click on a single thing. The money will be automatically deducted from the account. This is why people are making more investments. This removes the stress of people as they don’t have to remember every single month about the investment.
The same goes for bill payments. Nowadays, one can easily pay the monthly bills automatically with the banks. The money will be educated from the account whenever the bill is generated. Many things can be changed here.
People are looking for better ways using which they can automate their finance. This is also one of the fintech trends of 2021 that will come. For more information regarding business automation, please read our previous article: Benefits of business automation.
Pandemic Proof Banking
This is less like a trend but more like a necessity. Due to the pandemic, people have faced a lot of problems. With that being said, another challenge for the fintech industry to create a robust and pandemic-proof banking solution.
Final words
To conclude, these are some of the fintech trends that will be seen in 2021 and further. Many things will be updated with this.
If you want to stay updated with the trend, Finwin technologies is here to help you with your project. Contact us today and we will guide you in the best way possible. Our team member will guide on how you can get started with your project and will help you further wherever needed.
