Tech

Key technologies and developments shaping the future of Fintech


Fintech is growing rapidly. No matter who you are or what industry you are in, you should keep an eye on the latest developments.

In case you are not familiar, “fintech” is a combination of the words “financial technology”. It refers to any technological development that impacts the financial world in some way. It could mean a payment-enabled technology, a disruptive startup offering a fundamentally new financial product, or modifications to already existing financial products and services.

So, what are the most important technologies and developments shaping the future of fintech? Learn the evolving features and benefits of fintech and prepare for a faster, more efficient financial world with just one click.

Why Fintech is important?

It is tempting to think that fintech is only suitable for a small number of individuals and companies, but that is not the case.

Big banks clearly benefit from fintech because it is closely linked with their existing products and services. Tech entrepreneurs are also of particular interest, as they are the creators of new technologies.

But the reality is that consumer use of fintech for banking, payments, and investments has reached mass adoption — nearly 90% of Americans now use fintech. Every business owner, investor, and consumer has the potential to benefit from fintech.

Impact of Finance

Finance is present in almost every interaction and it is relevant to almost every area of ​​any business.

If your business produces and sells anything, you need to think about cost-effectiveness, how you collect money, and how you make a profit. As a consumer, you can conduct financial transactions daily or close to it.

Speed ​​and efficiency

From the collection of payment to issue loans, better fintech can make almost everything related to finance faster and more efficient. Whether you’re interested in maximizing the performance of your business or just saving a little personal time each day, it can be beneficial if you know how to properly tap into new fintech developments.

Cost savings

Similarly, a better use of fintech can save you significant money. With lower financial transaction costs, greater efficiency and improved cash flow, businesses and individuals can significantly improve their financial situation.

Regulations and Compliance

With our limited and challenging regulatory environment, keeping up with businesses is harder and more expensive than ever. Improved fintech technology makes record keeping, audit behavior, and ultimately compliance much easier.

Everything you know, but better

The biggest general trend in modern fintech is to improve every aspect of our current financial landscape.

There are millions of pieces that intertwine seamlessly in our financial ecosystem. Fintech gurus are constantly on the hunt for new innovation opportunities. One by one, new technologies will be able to completely transform our financial system for the better.

For example, eCapital Corp. recently announced the collaboration with Visa enables their clients to get paid faster and control their capital management more efficiently. In their words, “The eCapital platform provides clients with direct connections to the funds in their eCapital accounts. A powerful account management platform that provides full transparency to track transactions in real time, monitor balances and credit lines, and generate detailed reports for audit purposes and tax returns. Through development and cooperation, the Company is able to provide customers with new options for receiving funds through merchant cards and accessing revolving lines of credit to close the gap in daily business cash flow. . “

In other words, companies can use advanced technology to streamline capital management and maintain positive cash flow.

Fintech companies are constantly developing advanced upgrades, which means you will see endless improvements with minimal or non-existent downsides. More convenience and efficiency will emerge as financial solutions become faster, easier and cheaper.

Fully Digital Banking: Neobanks

It’s no secret that online banking has a number of advantages over in-person banking, at least for consumers. That’s why most people are now using digital services more than going to banks in person.

This growing trend is likely to continue, with some banks becoming purely digital, or so-called new banks.

Anchor banks are much more flexible, have lower costs, and serve consumers the ways they like. Predicting a reality with no physical banks is a bold one. However, we will definitely see the rise of more anchor banks in the near future.

Strong security

We all know that Security is very important in the financial world.

If you don’t use a secure system, your funds can be stolen or manipulated. If consumers are concerned about the security of your tools or products, they won’t patronize you. That’s why one of the highest priorities in fintech is security.

Banks and other financial institutions are doubling down on their cybersecurity. They are using a bunch of new high-tech tools for identity authentication and secure transactions. These include everything from multi-factor authentication to biometrics.

Big data analytics

Data is increasingly important. The dominant businesses today are those that have the ability to collect large volumes of data and analyze it to form meaningful conclusions about their customers and business environment.

In the financial world, data is abundant, but the number of businesses fully exploiting it is still somewhat limited.

Increasingly, we are starting to see the rise of startups that can properly collect and harness the potential of big data, including startups that create robotic investment advisors and provide intelligent tools for financial decision makers.

Machine learning, AI, and automation can maximize the value you get from big data analytics.

Blockchain

Most people are at least familiar with the term “blockchain” because the growing popularity of cryptocurrencies. But you may not realize that blockchain is useful for a wide range of different applications.

At its core, blockchain is used as a decentralized way to validate transactions or commitments, using a public ledger. This has many benefits, including greater security, access to privacy, and greater autonomy for the user.

Increasingly, banks and financial institutions are leveraging this technological tool to power their other innovations.

White Label Solution

Although more on the business side of things, the fintech world is starting to adopt more white-labeled solutions.

In this context, instead of creating their own fintech products, companies can harness the power of external third-party fintech products and sell them to their end customers.

Why Fintech is set to continue to grow

Fintech Ecosystem will only grow to become more prominent and important from here on out. In many ways, this is just the beginning of a long and complicated transition to everything we know about finance.

We can expect growth acceleration for the following reasons.

Continue to invest

Despite the recent turmoil in the stock market and the plunge in the value of Bitcoin shares, long-term investment opportunities in fintech remain strong.

Remember, many fintech developments offer rigorous upgrades over their older counterparts. Because of this, they have high profitability potential and are scalable. These strong advantages have attracted many investors into the sector, encouraging them to pour billions of dollars into promising new startups and opportunities.

Public advertisement

It also helps the public get hyped about developments in the fintech world. That’s the whole reason why fintech has become such a popular buzzword.

With every business owner falling in love with new fintech solutions and every individual consumer excited about the possibilities for the future, demand is unlikely to subside anytime soon.

Improvements and feedback

Innovations in a certain field tend to attract other new ideas. For a simple example, as cryptocurrencies began to grow in popularity, the blockchain technology that provided the infrastructure support began to gain attention and recognition. Since then, many brilliant inventors and innovators have used blockchain to create their own unique solutions.

Fintech is one of the most exciting areas to watch as it has the potential to make our businesses and lives simpler, more efficient, and more financially advantageous. It only gets more interesting from here, so keep an eye out for new entrepreneurs, new startups, and new environmental pressures. That way, you can maintain your lead.

Image credit: CottonBro; Bark; Thank!

Deanna Ritchie

Deanna Ritchie

Manage Editors at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously, she was Editor-in-Chief for Startup Grind and has over 20 years of experience in content management and content development.



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