Every year, every industry sector ushers in trends that shape its future. The trends of every industry are shaped by human resources, technological advancements, financial trends, and other aspects that need to be taken into consideration. When we focus on the fintech industry, the industry is also affected by a number of outer and internal influences. If you are thinking about investing in the fintech industry, you need to know about the fintech trends that will affect the industry in the coming years. In this article, every important fintech trend for the coming years is mentioned.
AI and ML Fintech
The AI trend is like the cruise ship on which every industry is sailing. Artificial intelligence is a technology that can have varied use cases, including multiple use cases in fintech. Fintech is all about mixing technology with finance to create the best kind of platform for financial services and solutions. The combination of AI and ML can create devices that are functional on advanced AL algorithms and ML capabilities.
The devices and apps can learn on their own and create scope for improved services to people. There are multiple uses of AI algorithms in fintech today. AI developers and app development companies are collaborating to use AI for credit risk assessment, algorithmic trading, and many more. With the help of AI and ML, people will be able to make financial decisions in a more informed and rapid way.
Sustainable Finance
The trend of sustainability and green actions is here in all industries. The fintech industry is also helping companies to turn to green banking processes. Sustainability is the need of the hour and companies are coming up with green banking solutions that foster sustainability into banks workflow. There have been policy changes and regulations that require banks to change their operational workflow in order to deal with climate change and environmental degradation.
With clean tech and simple steps towards sustainability, banks can turn green. The use of digital payment solutions and the urge to go cashless is a major step towards sustainability. As we move towards the use of gadgets, the digital method of payment adapts to the future of the earth. Fintech can also help banks turn carbon neutral and take responsibility for a greener planet.
Biometric Authentication
The biometric authentication process is a major step towards using biology and technology to ensure that authorization and access go ahead in a fast and accurate manner. The biometric authentication process is a trend that supports advanced security provisions and multiple layers of security around a fintech solution. The biometric authentication process can be seen as one step of user authentication as a part of multi-factor authentication.
More and more fintech companies are integrating biometric authentication into their applications because the method is convenient and secure as compared to traditional methods of authentication. The use of fingerprint and fingerprint sensors in devices is a good way of integrating biometric authentication for security.
Virtual Finance Advisors
The aim of fintech solutions and their use cases are all virtual. The presence and expertise of a virtual assistant have become a fintech trend, too. Virtual financial advisors are now in demand from people who want financial insights and advice but do not want to interact with real people. AI and ML have been used to create virtual finance advisors that work faster than real advisors but give great financial advice on when to invest and what to invest in.
AI-powered financial advisors can help you in budgeting for your personal or professional finances. Virtual financial advisors can also help people with investments and stock marketing. The advisors help you invest in the proper channels according to your financial risk tolerance and financial goals. Virtual advisors can also help you with debt repayment.
Net Banking Applications
New-age banks are riding high on the technological trend of net banking applications. The Net banking applications are created by fintech companies. The use of fintech applications can be done to take banking and transaction actions with the help of the internet. These banking applications are easy to use and very affordable as they do not cost anything.
The fintech companies are using new technologies and features to create the most innovative applications for public use. Net banking applications are safe to use and can be accessed through your mobile phones and laptops when necessary. A person can just carry his own bank through these applications.
Ai-led Fraud Attack Detection
Fintech companies have been thinking of how to protect their customers and assets from cyber threats and fraud attacks. With the use of AI, there has been an increase in financial frauds done smoothly through AI usage and deep fake technology. Cybercriminals can now use AI-powered threats and processes to enter customer accounts and steal money that they want.
However, while the malicious use of AI has been developing, the good use of AI is also coming to the fore with the use of AI and predictive analytics to detect and avoid cyber threats before they affect fintech solutions and banking institutions. AI can be used to protect the financial institutions and personal assets of banking customers.
Blockchain Integration
Blockchain integration is a process that has been used to create cryptocurrency and other cash methods in the digital landscape. Blockchain technology is a great way of bringing in decentralization and complete integration of new payment methods. Blockchain is very secure for digital payments. Blockchain integration into fintech applications can be done to create methods for cross-border payments in a short period of time and also for decentralized easy lending and borrowing of money to customers.
Conclusion
These are the prevalent trends of the fintech industry that we can see taking flight in the next year or so. The 2024 trends of the fintech industry are predicted according to the technology and developments that happened this year and the last few years. Fintech companies like FidyPay are ushering in a new era of technological advancements and other new improvements that create better fintech applications and features for customers to enjoy.
