The world of finance has always been a hotbed of innovation, with new technologies driving change at a breakneck pace. Though in recent years, we’ve seen some truly revolutionary advances that are transforming the way we think about money, banking, and investing.
From blockchain to artificial intelligence, these cutting-edge technologies are opening up a world of possibilities for financial institutions, startups, and consumers alike. In this blog post, we’ll explore the four biggest trends that are driving innovative technological change in the financial industry, and what they mean for the future of finance. Whether you’re a fintech entrepreneur, a seasoned company, or just curious about the latest trends in finance, this post is for you.
So, buckle up, and let’s dive into the exciting world of fintech!
Here are 4 Fintech Trends That Need Your Attention
- Modernizing Your Financial Infrastructure for a Digital Future
The prevalence of cloud-based fintech companies shows how crucial scalability is for long-term success in finance. It’s now clear that legacy systems don’t provide the required amount of flexibility for growth, mainly owing to separated data and a lack of system interoperability. Also, they are very expensive to manage and slow to offer new functionalities.
So, it’s time to shift to the cloud. Companies, by shifting to the cloud, have reduced costs, brought organizational risks to a historic low, and on top of that, increased their profits by a whopping 121% only in the last few years.
On the cloud, it is easier to deploy products and deliver a vast range of customer experiences at scale. However, the only constraint that scares entrepreneurs and fresh companies is a lack of ability to make the best use of agile cloud solutions to gain optimal levels of operational flexibility. Entrepreneurs also doubt, given the sensitive nature of the finance niche, if they’ll be able to effectively meet regulatory requirements for the cloud. Well, let’s be candid. With the right technology partner on your side, all these things are more than possible to achieve even for startups and companies with a tight budget.
- Cyber-attacks and Security Breaches
Fraud and cybercrime have become major concerns for financial institutions, especially with the increasing digitization of the industry. In fact, the global cost of cybercrime is expected to reach $8 trillion by 2023.
Companies may also have to spend millions in fines, in fact, only banks have paid over $300 billion in regulatory fines since 2009, and these penalties are getting severer with time. This is a significant challenge for fintech companies, as they need to ensure the security and privacy of their customers’ financial data.
To combat this issue, companies need to implement robust security measures that can detect and prevent cyber-attacks in real time.
- Advanced encryption methods,
- Multi-factor authentication,
- Cloud Access Security Brokers (CASBs) to detect and identify cloud threats,
- Continuous monitoring of Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS) platforms,
- And more.
Moreover, companies need to stay up to date with the latest trends and techniques used by cybercriminals to stay one step ahead of potential attacks. Since fraud and cyber threats aren’t going anywhere, your company also needs someone to handle security and compliance risks with some strong professional commitment. By partnering with WME, fintech companies can be confident that their systems and customer data are secure from potential attacks.
- Digital Wallets and Contactless Payments
Fintech consumers are rapidly shifting towards using easy, multi-purpose wallets and making hassle-free contactless payments. This is just another trend that is fast taking over the whole finance landscape. There are many factors that are driving this change. Mobile phones are getting more and more common globally. The COVID-19 pandemic also expedited this change, and then, of course, cashless payments are convenient.
Examples of such wallets could be Apple Pay and Google Pay. They allow users to store their credit and debit card information securely on their mobile devices. Users can then make purchases using their devices by simply holding their devices up to a compatible point-of-sale terminal. That’s the convenient thing about such wallets.
Contactless payments, on the other hand, allow users to get rid of those “unsafe” physical transactions. Contactless payments require the use of a range of technologies, including Near Field Communication (NFC), QR codes, and Bluetooth Low Energy
(BLE) beacons. All these technologies are extremely powerful, but they demand some solid expert handling.
Once fintech businesses get their hands on this amazing trend, not only reduce costs associated with cash transactions but also, offer consumers a more convenient and secure payment experience.
At WME, we understand the importance of staying ahead of the curve when it comes to digital payments. We offer a range of solutions that can help businesses embrace digital wallets and contactless payments, including POS terminals that support NFC and other contactless technologies, mobile payment apps, and fraud prevention services.
- Customers Expect a Digital-First Experience
Modern customers are highly mobile, open to alternative banking options, and sensitive about how their personal information is being used. As a result, they seek highly personalized experiences. This trend has prompted many fintech companies to step up and utilize big data in pursuit of fulfilling their customers’ demands.
From initial assessment to post-purchase support, there’s a lot that these companies have now offloaded to AI and Machine learning. Bots can satisfactorily answer personalized questions, suggest products, and assist users with financial management, without any time lag. For analyzing trends and predicting the future, the tools like Power BI are helping fintech companies.
So, Artificial Intelligence and Big Data have just overturned the tables here. Again, leveraging this technology to its full potential requires some strong in-house expertise or at least some dependable professional support. The right team beside you is not only the more affordable solution but also a wiser one. It will identify the friction points and streamline workflows to finally optimize the customer experience at your company. That’s all you need to utilize the latest technology to its best.
Wrapping it up:
Fintech is going through some landmark technological changes that are driving quick innovation and growth. Digitalization, adoption of the cloud infrastructure, profound cybersecurity, and contactless payments, being the chief ingredients of the change. They are transforming the industry and changing the way fintech operates.
As these trends continue to evolve, businesses need to adapt to stay competitive and meet the demands of their customers.
At WME, we understand the importance of keeping up with technological advancements and helping businesses adapt. We’ll help you stay ahead of the competition, improve efficiency, and deliver better customer experiences.
Got questions? We have answers. Please don’t hesitate to contact us.