The signs of the times confirm that investment in fintech, new technology that can bolster and automate financial services, is on the rise and is likely to exceed $30 billion by 2021. This investment is expected to lead to significant savings in cost and time and improvements to service offerings from financial institutions. Below are the top 3 fintech trends everyone should look out for in the year 2021:
Hyper-personalization through big data and AI
For a significant number of years now, experts in the marketing field have espoused the benefits of personalization to customer acquisition and retention. Today, owing to the opportunity big data and artificial intelligence provides to help us process, store, and drive insights from the data, hyper-personalization is a closer reality than it has ever been. Financial institutions now have access to data about their customers’ behavior and social and browsing history. AI also makes it possible to use real-time integration of these information to structure and deliver a personalized one-to-one marketing experience for their customers.
Robotic process automation (RPA)
As we launch into 2020, robotic process automation (RPA) is expected to continue to impact how financial institutions meet federal and state compliance requirements. Today, advanced RPAs do not necessarily have to be programmed to replace humans perform; they can simply watch what humans do and then automate or suggest improvements to processes. Some of the tasks that can be affected by this trend include: customer onboarding, verification, risk assessments, security checks, data analysis and reporting, and many other cyclic administrative activities.
Blockchain is disrupting financial institutions and will possibly make things more efficient in the financial services industry. Financial institutions currently lose billions of dollars to fraud and identity theft annually. Blockchain has the potential to cut that loss in the industry significantly, since it is a computer file that is decentralized and can be easily circulated. Blockchain, which is expected to reach $6,700 million by 2023 in the United States, can be used by financial institutions for smart contracts, e-payments, identity management, and trading shares.
Mobile payment innovations
A key trend in fintech is the growth of the mobile payments industry. Consumers simply want payments to be done at little or no cost, with anonymity and at a swift speed. Mobile payment innovations are already set to replace our traditional wallets as Google, Apple, Tencent, and Alibaba work to meet global need for cashless transactions. New features such as biometric access control, inducing fingerprint, and face recognition are making transactions more secure than ever.
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