FinTech companies are nothing but financial services companies that are backed and supported by technology to deliver financial products and services. They provide financial services by making use of technology and software.
FinTech companies are still in their developing stage due to the slow progress of these companies from the traditional methods to the technological ones. However, it’s time for financial marketers to realise that the shift should be done much faster than they expect. With technological advancements changing the digital landscape in a big way and online platforms like Paytm and other FinTech companies facilitating payments and money transfers in the simplest way possible, financial services providers will have to gear up to compete with them.
While FinTech has been driving the finance industry in a big way, new trends are approaching this industry in the year 2020. Some of these are:
Rise in Wallet usage
With the advent of online payment apps like Paytm, Mobikwik, Freecharge, etc., cashless transactions have seen an upsurge. It will continue to rise in 2018. People will continue to use such services and add to the cashless transaction pool, and the use of digital platforms like online wallets for making payments and transactions will increase.
Data Analytics and AI will rise
Artificial Intelligence (AI) has been affecting every industry and finance industry is not left behind. AI is being used for customer interactions, trading, risk management, fraud detection, etc. AI is also being deployed to automate the back-end tasks. Apart from AI, the finance industry will also use data analytics to cater to consumers’ needs and preferences and provide them with more personalised experiences.
Use of blockchain
Blockchain is the technology behind the new digital currency we call as a cryptocurrency. Blockchain will not only be used for such digital currencies but, will play a role much more significant than that and will be used in other financial services products as well.
Collaboration of banks and FinTech companies
Today, banks have started collaborating with FinTech companies to integrate each other’s strengths for providing an enhanced and improved customer service experience. The aim is to provide technologically backed banking facilities to the customers.
Privacy and security at priority
With cybercrimes affecting the cyberspace and digital consumers facing issues with privacy and security, it becomes imperative for banks and financial institutions to ensure the safety of their data. For this, regulatory bodies are also working on making rules that are stricter and provide enhanced security while also ensuring privacy.
Instant payment with UPI and AEPS
Newer payment methods like UPI (Unified Payment Interface) and AEPS (Aadhar Enabled Payment System) are facilitating simpler and faster ways of making transactions. Banking will become more open, and the way the people transact and make payments will reform.
Rise in use of chatbots
The leading market players in the banking industry like HDFC and ICICI have installed chatbots for customer interactions and customer solutions to provide a smooth and hassle-free user experience. In 2020, the quality of chatbots will improve giving rise to enhanced and accurate responses. Further, with an increase in voice search, chatbots will also become voice-enabled and talk to our customers to solve their queries.
FinTech companies are proliferating due to consumers adapting to the technology as it is advancing. With the internet available at cheaper rates and smartphones offering a one-stop platform for all the consumer needs, it becomes imperative for the financial services providers to go digital and put technology to its maximum use. Keep these trends in mind to provide your customers with a tech-driven enhanced experience and gain an edge over the competition.