Fintech has emerged as a huge revolution over the past couple of years. The need for secure and robust financial technology was even more in demand, in light of the pandemic, where people desperately needed financial services and automated processes that they could access remotely through technology. When one can’t go to the banks, financial technology is pretty much the only option!
While many from the older generations still seemed to rely on the old-fashioned banking methods, 2020-21 is the year that has led many to explore Fintech. TechAhead, one of the leading Fintech app development company, has had the opportunity to harness financial technology and develop a variety of applications that serve end consumers and businesses alike.
It is fair to say that with the security and convenience experienced by different industry professionals and businesses, Fintech has explored some unchartered avenues, and a new digital space is in store from hereon.
Top 5 Fintech Trends of 2021
While there are abundant possibilities in store for the future, here are the top 5 Fintech trends that are being widely used in 2021, and we think these are “here to stay”!
E-commerce has been in huge demand during COVID-19. In fact, any form of commerce has been pretty much digitized during the peaks of the pandemic. From grocery deliveries that were time-specific to other shopping services, the smooth functioning of e-commerce platforms has kept the show running.
Fintech for e-commerce platforms not only needed to fit the security criteria but the use of the latest technologies also made it possible to collaborate, track orders, update statuses, and hence provide a seamless e-commerce system to consumers all over the world.
Cryptocurrencies and Digital Banks
The use of digital currencies had already become popular over the last decade, with the cryptocurrency market hitting $600 billion in January 2021. Investment with digital banks has also grown, with over 30 percent of banks that now offer completely digital solutions.
These developments have not only saved the major operational costs that physical banks would face but are also paving a new path for financial technology and financial practices in general.
Another prerequisite of financial interactions in 2021 has been a compulsion that helps maintain social distancing. A contactless payment strategy has been implemented by different brands where money can be transferred through wallet applications linked with your phone number or perhaps by simply scanning a QR code. UPI payments in 2020 have doubled, with more banks being linked with contactless payment gateways and applications.
It offers a way to break off dependency from the banking platforms to manage payments and billing readily through applications. This trend is likely to stay on, even beyond the pandemic with easy interactions and direct payments facilitated through contactless payments.
AI and ML-Powered Fintech
The use of AI and machine learning has penetrated almost every industry, and Fintech is no stranger to it. The Fintech apps that have surfaced in 2021 have employed AI and ML-based technologies to facilitate automation in banking and financial services.
With a simple setup phase using customer data, AI and ML can have noteworthy contributions to enhance Fintech applications. Companies like Google, IBM Watson, Microsoft, and several others have already made inclusions such as interactive chatbots, virtual agents, and other automated tools to enhance Fintech considerably.
In the era of SaaS, financial applications have also begun to be shared as a service/digital product. While one might not want to invest in a heavy infrastructure for their investing and financial management requirements, they can always use existing Fintech as a service.
A variety of features, including billing management, transaction processing, payment regulations, and much more, can be accessed with different Fintech applications available as a service. This approach bridges the gap between the best technology that is available for financial applications and what is commercially viable for businesses and consumers to access.
Thus, the scope of Fintech is ever-expanding, and its true potential could be observed well during this pandemic. Fintech trends that had emerged as a dependency during COVID-19 might have actually opened consumers’ eyes to a robust financial system that can be improved further in the years to come. With people from different social, professional, and age backgrounds now being familiarized with financial technology, a larger scope opens up for developing technology that is standardized and can be used by anyone.
Having experienced the convenience and speed Fintech has to offer, many have taken the plunge to digitize all their money matters with little to no interaction required with the physical banks. TechAhead is a Digital product development agency that works towards bringing in the latest technology for the financial sector, where each aspect, from banking services to shopping with the money, can be seamlessly integrated with applications. Have a great idea for a Fintech startup? Let us get on board to discuss how we can develop the best app for you and make it industry-ready!