The global financial technology industry, or fintech, is worth tens of billions of dollars – and counting. Despite the coronavirus pandemic shutting down the global economy, fintech has stayed strong as companies look for new, innovative opportunities to satisfy customers during these uncertain times.
Given this constant change within the industry, what are some of the things we can anticipate in fintech in 2021? Here are just a few of the primary fintech trends:
- Remote payments in developing markets.
- Fintech giants will absorb their competition.
- Adoption of cryptocurrency and blockchain technology.
Ultimately, fintech produces a laundry list of advantages that benefit consumers, but what are they? We have compiled a list of the top fintech advantages that benefit consumers, businesses, investors, and the broader economy:
1. Price
The fintech realm is one of the most innovative industries in the world today, employing the newest technologies and software to improve the finance sector. As consumers have witnessed in the broader marketplace, there is usually a reduction in prices when there is innovation.
How does this happen? Fintech will develop a new function that might erase one layer in the transaction process, or businesses might speed up cross-border money transfers.
Whatever the next great development in fintech is, the industry’s actions can lower costs, and ultimately cut prices for customers.
2. Convenience
Fintech is typically the first to adopt some new type of technology or software apparatus, making your banking experience more convenient or streamlined, whether it is embracing the internet or utilizing smartphone technology. Fintech will come up with ways to make sure that customers have more flexibility and freedom when it comes to executing transactions, making transfers, paying bills, or saving more. Trips to an ATM machine, or long lines spent at the bank, are quickly becoming a past inconvenience.
3. Features
Businesses in the fintech industry offer a diverse array of features to enhance the banking experience. It is remarkable to see what is introduced by the smaller fintech players, then adopted by the major corporations, like a cheeky game of cat and mouse.
An all-in-one checking and investing account is a great example of something with a long list of beneficial features. The most significant and most rewarding component of this kind of account is that it pays daily investment returns on deposits, while simultaneously allowing you to instantly access to the money you’re investing. Not to mention, you can get started for free! Instead of allowing your capital to lie dormant, you can make it work for you as you collect returns on your deposits.
It is these kinds of features that make the smaller companies stand out from the large corporations.
4. Advanced Security
Security is a critical aspect of fintech. One security breach, cybersecurity infiltration, or data theft can destroy a fintech firm. The smaller firms do not have the money or resources to withstand the aftermath of this security failure.
Therefore, fintech usually invests heavily in their security infrastructure – both online and offline. As a result, customers can feel confident that their security is on par with some of the largest financial institutions in the world today.
5. Speed
Be it an online bank or a digital-only lender, one of the chief hallmarks of fintech is its efficiency. Many of these organizations rely on automation, artificial intelligence, and machine learning to get tasks done (and let’s be honest, humans are no match for robots when it comes to speed and accuracy).
Since studies have revealed upward of 90 percent growth in usage of mobile applications over the coming decade, fintech will invest in new ways to home in on mobile-first technology and services.
And, of course, with great speeds come great accessibility and transparency. Despite the importance of possessing a bank account, millions of people are still unbanked. Can fintech solve this problem that is collectively costing these individuals millions of dollars every year in lost savings? With financial tools and banking services more accessible and affordable than ever before, everyone can have somewhere reliable to store and grow their money.
6. Identify New Trends
Fintech is often ahead of the pack when it comes to identifying new trends. In a post-coronavirus world, fintech might offer a suite of products that concentrate on financial prudence, giving consumers tools that enable purse-tightening endeavors. And, noticing the fintech sector has earned new users, perhaps the larger companies will institute the same programs that identify these trends.
Consider this: Walmart announced that it is launching its own fintech start-up, working with Ribbit Capital. As the world’s largest retailer continues to expand its business model and reach, Ribbitt Capital “will bring together Walmart’s retail knowledge and scale with Ribbit’s fintech expertise to deliver tech-driven financial experiences tailored to Walmart’s customers and associates.”
Even internationally recognized mega-corporations are tapping into the popularity and growth of the fintech revolution! And it goes without saying: if the big players are investing in it, then it must be good!
