Author: Ryan Jason

artificial intelligence blockchain digital banking fintech payments

Evolution of FinTech Solutions and their Applications in 2021

Fintech, known for its applications in the e-commerce industry, has been in popular demand over recent years. By fusing technology and finance in smart products and services, Fintech brings innovation to the table for businesses and customers alike. According to Statista, the industry will top a staggering $4.8 trillion by the end of 2020 and is estimated to reach $6.7 trillion in 2023. From managing daily budgets to online shopping and investment predictions, financial technology has revamped our lives.

Because of the services’ nature, fintech is likely to replace traditional banks and financial systems with e-wallets, budgeting apps, and mobile banking. With artificial intelligence and machine learning in the industry, fintech solutions can bank on customer interests and provide relevant services.    

FinTech Advances in 2021

Fintech incorporates a set of technologies to aid financial institutions in delivering their services. Using advanced systems to manage customer data efficiently, fintech allows enterprises to better assess market trends and devise a future strategy based on intelligent solutions predictions. Below are listed some financial technologies used in 2020:

Big Data Analytics

For fintech companies, market and customer data are of prime importance. Due to the massive number of consumers and service providers in the market, managing this data becomes a hassle for companies. With the power of data analytics of large sums of data, intelligent models can process raw information to detect patterns and future predictions. By taking into account customer behavior, purchase, and search history, data mining helps fintech providers develop market strategies in the best of their interest.

Artificial Intelligence

Today, intelligent systems play an important role in the development of fintech technologies which include smart chatbots, automatic credit scoring, and wealth management systems. These help digital businesses carry out smooth operations and meet global regulatory compliance by preventing fraud through their platforms. Since Fintech companies rely on remote customer onboarding and verifications, AI-powered solutions offer a wide range of opportunities including customer enrollments through face verification, and improved OCR engines for data extraction of users. 

Automated Business Operations

In this era of digital upheaval, fintech organizations rely heavily on Robotic Process Automation (RPA). The ability to assign manual and tedious tasks to automated systems allows managing finances less of a challenge. RPA has applications in data collection, compliance regulations, transactions management, and email marketing through automated bots. This streamlines operations for financial entities and lets them deliver seamless services to their customers. 

Blockchain Technology

The finance sector uses blockchain technology to scale its operations and customer experience. It offers fintech companies to acquire user data through a safe and secure channel, effectively store it on cloud databases, and allow consumers to perform quick transactions. This significantly reduces the risk of cyberattacks since transactions are encrypted and protected from external intervention. The increasingly popular cryptocurrency is backed by blockchain to store customer records and allow digital payments regardless of location and time.     

FinTech Applications and Trends 

Fintech has applications in numerous industries including banking, e-commerce, P2P exchanges, cryptocurrency, and online shopping. A few applications are below:

Regulatory Technology

Today, in the digital space, online businesses are faced with stringent compliance regulations to prevent illicit criminal activities through their channel and to protect their customers from identity theft fraud. Regulatory Technology, also known as RegTech, focuses on ensuring compliance practices proposed by financial regulators like FinCen and FATF. A RegTech solution allows effective management of data comprising transaction information, profile, and tax return statements. 

Digital Banking on the Rise

Banks couldn’t have survived the fintech revolution without adopting the technology itself. Digital banking has become the new normal with applications in P2P exchanges, global payments, and remote transactions. Banking entities are looking forward to providing their customers with new and improved services by integrating fintech with their organizations. Digital banking provides a lot of benefits specifically in today’s global health emergency. 

  • You do not need to go out in the pandemic and can easily perform transactions at the comfort of your home while practicing social distancing.
  • Contactless delivery of your products and online goods is possible since you need not have to deal with physical cash.
  • Paperless and digital systems are free from the virus
  • Banks can save a good deal of money by automating their daily operation with fintech

Payment Solutions

According to the Juniper Research group, half of the total world’s population will have a digital wallet in less than five years. Virtual payment solutions like PayPal and Payoneer have seen a surge in demand because of their ability to remote and quick transactions. Gone are the days when you needed to swipe a card to buy products from an offline store. Since these services aim at delivering better financial servers to consumers they fall under the fintech industry. 

Mobile wallet innovations like Google Play and Apple Pay allow customers to shop online with their smartphones anytime and anywhere without the hassle of entering their details on e-commerce platforms each time.

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