The landscape of FinTech is changing all the time. Digital banking today is not just about accounts and payments but also covers monitoring of client behavior and real-time analytics that helps the financial institution to understand clients’ attrition reasons and other important business metrics. With this information, financial service providers can better interact with end-users and shape the customer experience. Tech and engineering innovations also have a direct impact on trends in the banking industry. We see the following fintech trends to look out for in 2021.
Low- or no-Cash
With the advancement of digital technology, cash is becoming less popular every year. Each year new financial services roll out to the market targeting to move towards a cashless society. The new trend that banks will start the adoption of the digital currencies issued by central banks.
Enhanced biometric security
Mobile banking and other financial services have been using biometrics since 2013 when Touch ID was announced by Apple. In 2021 smart authentication approach using a combination of biometrics, other authentication methods, and risk-based algorithms become a must-have for fintech providers and banks. We may argue how secure biometrics is, but from the end-users perspective, it brings security to the next level, providing end-users with the confidence that their money is protected.
Efficient Economy
The goal of an efficient economy is to provide the consumer with something that helps it, not to sell him/her just a product or service. Fintech services shall avoid selling just another bank card or e-wallet product. Instead, the financial institution shall reinvent the services and products to simplify the client’s experience and bring more value.
Personalization
Personalization focused on each consumer opens up for banks. Financial institutions will develop new solutions for collecting and analysis of consumer data from various channels.
Blockchain
Blockchain is present in data protection, identification, transaction registration, contract signing. This breadth of use is due to the safety and reliability of the technology, so you can expect the deeper and smarter adoption of blockchain technology in 2021.
Open Banking
Open banking allows trusted companies to securely deal with the financial information of bank customers. This is a great trend for hundreds of fintech startups, whose work is now complicated by the dominance of the largest market players. According to the Mobile Payments Today news agency, the number of open banking users has doubled in 2020, so now it is worth paying attention to this area.
Financial ecosystems for business customers
Financial ecosystems for businesses will integrate information about products, customers, advertising, and company profits. This will allow us to consider the information in a complex and process it in such a way that it is useful for both the business and its client.
Cloud-based solutions
According to the recent Spiceworks survey (Link: https://www.spiceworks.com/marketing/reports/it-cloud-services/), in 2020 93% of companies around the world used at least one cloud platform. Cloud-based services are set to see 23% growth in the next year or so. The number of concerns about cloud services and deployment gets lower.
We, at Veengu, focus on key industry trends. Our software is cloud-native. Smart authentication, blockchain-based logging, open integration API are available out-of-the-box. Our product team keeps in mind not just technical tasks, but usability, end-user experience, further solution scalability, and openness for integrations. So in the end you get the system that provides modern features to end-users and allows the fintech company to keep the IT budget at a reasonable level.
