With the advancement in the field of technology, our world has undergone rapid changes. Everything we do is digitized and is connected to technology in some way or the other. And one of the significant technological advancement in today’s world is FinTech.
What is FinTech?
As the word itself suggests, FinTech is the crossover between Finance and Technology. It is a growing technological industry that applies technology to improve financial activities. In simple terms, it means using technology to manage finances and work with it efficiently and in a better way.
FinTech is put to use to help companies, business owners and consumers better manage their financial operations, processes, and live by utilizing specialized software and algorithms such as biometrics, Artificial Intelligence, Blockchains, etc., that are used on computers and smartphones.
Mobile banking, eCommerce, lending services, and cryptocurrencies are some of the ways technology is used to make financial services more accessible to people. Know about top fintech trends 2023.
Top FinTech Trends must watch out for in 2023
In the beginning, FinTech used to be alluded to as an innovation that was applied to the back-end frameworks of banks or other money-related establishments – however, has since developed to envelop plenty of different applications that are more customer-centered.
In 2020, it is conceivable to oversee reserves, exchange stocks, pay for food, handle financial balances or manage protection through this innovation (and frequently on your cell phone). So now let’s see some of the latest FinTech trends that need to be watched out for in 2023.
FinTech Cybersecurity and safety: When we think of internet banking, fund sharing, investing online and everything that an ordinary person can do with his finances online, the first thing that hits our mind is hacking, online fraud, identity theft, money laundering, and espionage. And all the other ways through which anyone can lose his money online. Many individuals get worried about their sensitive personal information when they first hear about the FinTech business model.
For obvious reasons, the digitalization of financial institutions might bother the majority of users because technology hasn’t been known to be 100% reliable. So as for the forthcoming years, FinTech companies look forward to enhancing their Cybersecurity to try and stop any cyber-attacks if possible. And even if so, the cybercriminals prey on them, they find a way to recover the money lost and bring the business back to its original health.
Digital only Bank: Think of the time when you had to wait in endless lines to withdraw or deposit cash, think about all the times you had to go through in numerous paperwork and various procedures to get loans sanctioned. All of these problems could vanish with the inception of digital-only banks. Envision banking organizations that solitary exist in the virtual world that offers worldwide installment strategies and other helpful highlights, for example, taking advantage of digital forms of money rapidly. Many financial institutions are following this lead and have provided exciting services at a very affordable price.
There are many engaging highlights to advanced just banks, and they incorporate that you don’t need to go to a reliable bank. That means you don’t have to wait in line or deal with the different moods of bankers that can annoy you.
Even there are many paper works there which needs to be done but you don’t have to go through it in traditional banks with this. All of this, along with easier cost management, faster bill payments, easy management of your account and a lot more.
On the flip side, the banking procedure can get easier and the opening of banks different branches in different locations will no longer be required with the digital-only banking model.
It will be time saving process on both the sides. They will be concerned about maintaining the website that would be costing way less, and there won’t be many employees needed to process the applications and other admin tasks because they will be automated.
In 2020, this trend might proliferate because more customers are starting to recognize digital-only banks as a more efficient way to the bank.
Cryptocurrency and Blockchain
Over the past decades, two of the most popular terms that we might have come across to be Cryptocurrency and Blockchain. So, what are they? Cryptocurrency is a digital currency in which transaction records are being held by a decentralized system using cryptography.
Blockchain does have a system of recording information in a way that will make the system impossible to hack.
Blockchain as of now seems to be revolutionizing the FinTech industry, and it is supposed to have a significant effect on the bank in the coming few years. Cryptocurrency and Blockchain together have brought a new system of decentralized finance.
In 2023, more developments will go into the cryptocurrency blockchain to make it better suited for FinTech. More research will go into this sector to fully implement it in the financial industry at large.
Use of Artificial Intelligence
Artificial Intelligence not only by saying but also getting simulation of human intelligence in machines so that it can work like humans. In recent times we have learned to incorporate artificial intelligence in a lot of ways. As for FinTech, AI can work with unstructured data and information and can help manage cybercrime and fraudulent financial incidents. AI has already become a very efficient way to interact with clients through chatbots and helps a client with a quicker transaction.
About the author:
Moazzam is a digital enthusiast writer having 10+ experience in the digital industry. His publications are live on Hackernoon, E27.co, Yourstory, and more. Currently heading digital marketing at TechIngenious a mobile app development company in Jaipur, website development, software development, and digital marketing services backed with skilled app developers and marketers.