Financial technology or FinTech is the talk of the town in business circles and is receiving rapid positive change in the financial industry. FinTech companies have taken over the world of finance by improving overall financial services. The fintech and digital banking industries can deliver a positive experience to their customers.
New trends in fintech are emerging from both consumers and the marketplace at large. Let's take a look at 10 fintech trends for 2024 and beyond.
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| FinTech is reshaping the finance industry |
Latest FinTech Trends will Define the Finance Industry's Future
Businesses and people’s attitudes have undergone a huge shift during the pandemic that has shaken the entire foundation of the finance industry. Work from home jobs and online shopping have taken the centre stage. As we are getting ready to embrace the change, innovations are changing the way we look at traditional methods.
Major changes are taking place in the fintech and banking sector after the pandemic. Contactless banking, cryptocurrency are some of the major trends emerging in the field of the fintech sector.
In this blog, we will discuss the top 10 fintech trends to watch out for in 2024 and beyond. These fintech trends are changing the way the finance & banking sector has been seen and will transform the financial industry in the near future.
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| Fintech and the future of finance |
Top 10 Fintech Trends of 2024 and Beyond
Here are the top 10 fintech trends for 2024 that are navigating the future of finance.
1. Cybersecurity
Cybersecurity in FinTech is vital for companies looking to protect their sensitive data from the rising cyber attacks and meet high-security standards in a flexible way. With the advent of online shopping, safeguarding clients’ data is a huge issue faced by the finance sector. Cyber thefts and hacking are some of the problems that are proving to be a major challenge. Banking and fintech software development companies have to take extra measures to keep their client data safe. They have to be constantly monitoring the situation to perceive and stop any cyber threats that affect their client’s data. A sound and robust system has to be in place to safeguard the client’s interests.
2. Contactless Payments
COVID-19 has given rise to the concept of social distancing and digital marketing. Contactless payment is of the fintech trends 2024 which is growing rapidly. The Digital mode of payments has made contactless payments a relatively easy job. Now, the customers have to just tap the card to make the payment. It is a relatively new concept that is slowly gaining popularity worldwide.
The user has to tap the card on a specially designed machine that reads the magnetic chip and accepts the payment. The card is embedded with a magnetic chip that is readable by specially designed scanners. This ensures a high level of security as the code varies for each card.
3. Blockchain Technology and Cryptocurrency
Cryptocurrencies are the latest technology that has taken the fintech world by storm. They are secure, easily transferable, and can be stored in the cloud. Bitcoin was one of the earliest players in the field of cryptocurrency.
Cryptocurrency uses a technology called the blockchain. There are four types of blockchain technology: public, private, consortium/federated, and hybrid.
In the blockchain method, data is stored in the form of blocks. When one block gets filled with information, another block is added. This creates a chain of blocks that holds information. The information is limited to a certain set of people rather than everybody who has access to it.
The future of blockchain technology is very bright. Blockchain may transform almost every industry in the near future. It could create a more efficient and prosperous world over the next decade.
4. Customers Hold the Key
The internet has opened a plethora of options to communicate with everybody. Banking and finance companies have to reinvent themselves to reach the customers at their place. This will lead to the rise in offering personalized banking solutions that will play a major role. The focus has now shifted from in-person to personal banking.
5. RPA (Robotic Process Automation)
RPA technology or Robotic process automation is another latest trend that is changing the way banking is perceived. The process of client onboarding, security check, mortgages, credit card processing is done through robotic checks. This leads to organizational efficiency, reduces backlogs, and ensures speedy disposal of files.
6. Artificial Intelligence and Machine Learning
The next big technology that is making waves is artificial intelligence and machine learning. Banking and finance companies are looking to leverage the power of AI and machine learning to predict customer preferences and also provide the best customer experience.
By using these technologies, financial institutions are offering numerous services that make the customer experience more inclusive and immersive.
7. Digital Banking
The explosion in the use of smartphones has made financial institutions look or tap into more avenues to provide world-class service to their customers. They are bringing out evolutions that reach customers through digital means. This led to the rise of digital banking channels. They try to recreate the experience of walking into a bank albeit virtually.
8. Open Banking and Regulatory Authority
Information sharing between banks should be done with regulatory technology so that the information is shared seamlessly and without the fear of hacking. Banking institutions are now partnering with fintech startups to tap into the new customers and also provide a host of services that can set the ball rolling.
9. Data Management
Banks and financial institutions collect a large amount of data that has to be processed and stored securely to safeguard it from any outside threats. They have to invest in the appropriate infrastructure and systems that make sure that the information is not suspect to any outside threats while keeping the data safe.
10. Digital Payment
Financial institutions are focusing on and pushing digital payments. The use of UPI’s and QR codes to make payments are becoming more popular now. By using AI and machine learning, banks are innovating to find new avenues of payments.
Conclusion:
These are some of the fintech trends 2024 that are slowly taking the baking industry into a more technologically inclusive space. Many fintech startups are coming up with innovative solutions that can revolutionize the financial sector.
With more technology coming into play, financial institutions also have to safeguard their client’s interest and their details by having a robust framework in place. As the tech space brings in more innovations in the terms of technology, financial institutions are constantly upgrading their infrastructure to meet the ever-growing demand. There are further innovations on the pipeline that puts the fintech sector on the brink of a revolution.
Read Also: The Impact of Fintech App Development on Future of Banks