The FinTech industry is evolving with the latest technologies. Let's take a look at 5 most significant trends to keep up with.
- Mobile technology. As more and more people use mobile devices, financial services are going mobile. According to , the number of people who prefer to use their smartphones for banking has increased. With mobile banking, customers can manage money without going to a physical branch.
- Digital-only banks. The strong trend toward mobile banking resulted in a growing number of digital-only banks with no physical branches. They are particularly popular among Millennials, who often use smartphones for financial transactions. The examples of digital banks are Revolut and N26. These banks provide apps that let customers manage money on the go. No wonder, visits to bank branches are expected to drop in the near future.
- Biometric technologies. With the digital age, the financial services industry has become vulnerable to cyberattacks. So security has become a top priority for the FinTech industry. One of the ways to prevent fraud is to adopt biometric technology. However, security is not the only reason to use biometric authentication. This technology also makes logging in to an app easier and faster.
- Blockchain technology. The financial services industry became one of the first to explore the blockchain. There are more and more FinTech startups that use blockchain technology because of its transparency. One more advantage of the blockchain is smart contracts that can automate financial operations. So financial institutions are expected to keep focusing on this technology.
- Artificial intelligence. Most experts agree that AI will have a great impact on FinTech in the near future. There are a number of reasons the FinTech industry is using AI. First of all, AI automates tasks like data analysis, thus helping to save a significant amount of time. The technology is also used to create chatbots and robo-advisors. But more importantly, AI can help to detect fraud by monitoring patterns of customer behavior.
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