Throughout the first years of the 21st century, we have seen growth in the financial sector in the form of automated services, financial literacy, and innovative methods. But the financial revolution is just beginning. In this article, we gathered some of the most popular fintech trends taking over the world in 2019.
- AI focused Predictive Banking
One of the most impressive innovation trends in 2019 will be the advanced shift to predictive banking. For the first time, the financial sector can connect all internal and external information and build predictive profiles of clients and consumers in real time. With rich, accessible and financially useful customer data, financial companies will not only know their clients but also advice on the future.
This amplified use of data will improve the clients’ experience while enhancing safety and productivity.
- Biometric Technologies
Although the digital age has a lot of advantages, the disadvantages are always there. Financial institutions have been challenged by cyber hacks and security as well. The financial sector is critical thus security is a very prime concern for fintech.
Biometric technology has, since, been utilized to restrain fraud. Also, the use of biometrics for faster verification has come as a relief to consumers. You don’t need to memorize passwords or worry that you don’t remember them.
Various banks have begun investing in biometrics-based verification that utilizes smartphone cameras to scan the iris and the smartphone’s inbuilt fingerprint scanners.
The fear of fraud has been considerably decreased as all fingerprints are different; thus no one can steal from you.
- Blockchain technology:
One of the most exceptional and helpful fintech innovations is without doubt blockchain technology. Blockchain reduces paperwork by using a digital ledger that is distributed among several users and ensures that no single user has full access to data. Once a record has entered the digital leger it is virtually impossible to modify it.
Since blockchain is decentralized, it ensures liability through permanent audit trails, increases performance by getting rid of the middle-man and also ensures that sales and settlement processes in financial institutions take only a few seconds.
Through the blockchain, the verification a persons identity who wants a loan or wants to invest will be easy. In a few years, almost all the major banks will utilize blockchain technology to reduce cost and also reduce transaction time.
Automation may scare, but banks have already been using it to increase efficiency for a couple of years.
By increasing the use of automation technologies, banks and fintech payment processing systems will increase performance and reduce human error. This means that customers will spend less time and have experience improved efficiency in the banking systems. “We’re so prepared for all of these different fields, we’re particularly looking at the automation processes in fintech” says Jonathan Szeto of Qupital Hong Kong Ltd
- Cloud computing
Cloud computing allows banks to swiftly develop new applications, add new services and improve the consumer experience. Mobile banking would be impossible without the cloud. Even Artificial intelligence which is becoming very important to banking institutions is usually cloud-based.
More and more banks in 2019 will use cloud-based platforms to increase efficiency and speed to deliver products to their clients in an improved way.