The financial service industry is embracing cutting-edge technology, as evidenced by the explosion of fintech across the globe. Fintech refers to technology that helps business owners manage financial transactions more efficiently. The key advantage is lower costs, greater speed and flexibility. Fintech has resulted in reduced customer burden because of its flexible financing options. In addition, the industry is seeing improved profitability. As such, many companies are leveraging their IT resources to build digital supply chains and customer relationships.
Finance and technology have been inextricably linked since the evolution of money. Ever since then, the financial industry has invested heavily in IT infrastructure and application development. Fintech comes with a wide range of useful tools for dealing with broader financial issues such as budgeting, saving, and paying down debt. Here are five financial sector-driven fintech trends you should keep track of.
Financial software innovation – In terms of fintech trends, technology is playing a major role. Innovations in financial technology allow businesses to access important information. This information can include key performance indicators (KPIs), financial statements, and other financial data. Through the use of computer applications, companies can gain a deeper understanding of their entire business. This allows companies to make informed decisions that are in line with their organizational objectives. Financial institutions can use data science and technical solutions to deliver solutions that are easy to understand and use.
Student loan debt reduction – One of the fintech trends you should be paying attention to is student loan debt reduction. It’s estimated that more than nine million Americans are carrying multiple student loans. Not only are these individuals saddled with high interest rates, they are also held financially responsible for paying off multiple bills at once. A student loan debt reduction service can help an individual or company to better manage their finances by negotiating lower monthly payments and eliminating late fees. In fact, student loan debt reduction is one of the most significant indicators of overall market health that financial institutions need to pay attention to.
Cryptocurrency technology – Another one of the fintech trends you should be watching closely involves the area of fraud and cyber crimes. Some experts estimate that as much as $2 trillion is lost each year by businesses due to fraudulent transactions and credit card theft. One of the ways this type of fraud can take place is through the misuse of online currency exchanges. For example, if a consumer transfers money from one website to another without properly monitoring the transaction, it can result in a loss of revenue to the second company. In order to prevent losses like this, financial institutions must implement measures that reduce the amount of risk that is associated with specific currency exchanges.
Payments With Cards – One of the top fintech trends going strong is the use of electronic payments, also known as credit card payment technology. Experts claim that this type of service is one of the most effective ways for consumers to make secure purchases online. According to the experts, electronic payments are what are the top three fintech trends for the future. The primary reason for this is that electronic payment solutions allow consumers to settle various disputes or issues simply and quickly, without waiting on a bank or other financial institution. In addition to this, electronic payment solutions provide financial institutions with additional data about a customer’s financial activity, which can lead to significant customer profits.
Under-The Radar Transactions – Lastly, one of the top fintech trends that seems to be on everyone’s lips these days is the concept of “under-the-radar” or unseen transactions. In order to explain this, it is necessary to explain what an under-the-radar transaction is. According to experts in the field, this type of transaction is one of the easiest and most convenient ways for anyone to get any money transferred to his or her account. What are the top three fintech trends you’re watching that the industry isn’t talking about?
It should be rather obvious by now that fintech is changing the way that people do business. Experts say that this type of technology has the potential to completely change the way that banking and payments are processed. According to some analysts, it may even be worth the trouble that many banks have been taking putting the technology to work. If you’re a banker who hasn’t heard of the newest fintech trends, you’ve probably already got a desk job waiting for you somewhere. If you’re still employed, you may want to start using new technology and see how it can enhance your skills and increase the efficiency at which you do your job.