Top fintech payment trends in 2021
The fintech industry is changing at an incredibly fast pace, and it’s important for companies that want to stay competitive to monitor and adapt to these changes. In addition to the coronavirus pandemic, which has made an incredible contribution to market change, there is a myriad of other factors that have made the fintech industry situation uncertain, to say the least. Solutions that worked just yesterday are no longer working today, and instead of making a profit, companies are making a loss.
What does the world have in store for it in 2021?
It certainly won’t be exactly the same as it was a year ago. In this article, we invite you to take a look at a few fintech trends that will be relevant in 2021.
What do you associate a visit to a branch of any banking institution with? Queues, wasting time, and having to wait for the manager to perform a number of unnecessary actions, signing documents. A very large number of documents! They never seem to end.
Digital banking solves this and other problems by enabling users to perform basic banking operations remotely, simply by logging into online banking using a smartphone or computer. Most of the users’ requests are fulfilled automatically online with the help of mobile terminals and chatbots.
Today neobanks are especially popular, thanks to which a client can get access to his balance online at any time for convenient accounting of funds.
Systems of big data analysis
In order to successfully compete with other firms for clients, companies need to gather as much information about their clients as possible, compiling a detailed portrait of them. And the more valuable information is obtained, the more likely a company will be able to offer clients the services they really need.
Big data is an important part of increasing customer loyalty to a company and its products. But every company should take care of how to securely store all of the client’s sensitive data, ensuring its safety. Various tools for data analysis, modern storage, and tools that allow visualizing the data, and predicting the future behavior of customers will help her in this. All of these tools will undoubtedly be on trend in 2021.
Today, the entire financial world is just obsessed with bitcoins. This cryptocurrency is growing in value and many experts predict that by the end of 2021 it will reach the mark of $400,000 per coin. To imagine such a thing a year ago, or even 6 months ago, was simply unreal. However, the real value lies not in the speculative asset itself, but in the technology that underlies it. We are talking about blockchain technology.
In the very near future, blockchain will eliminate most intermediaries, making transactions between parties faster, easier and cheaper. All financial transactions based on blockchain technology will be as transparent as possible, and these technologies will contribute to efficient and secure data storage.
However, blockchain will contribute the most to the world’s financial system. With these technologies, the speed of payments will increase many times over, and customers will not have to pay high fees as they do with banking services.
Smart contracts, which are an integral part of the blockchain, will make it possible to work efficiently with orders and improve the quality of financial services. In addition, customers will have more trust in financial institutions, as smart contracts guarantee that the parties will fulfill their obligations.
This is far from being a new trend. Solutions that are based on artificial intelligence have been popular for a long time. Thanks to artificial intelligence, you can significantly improve the quality of interaction between a company and a potential client. In addition, these solutions are effective in the fight against fraud, which is becoming more and more relevant every year.
Chatbots based on this technology will significantly save operational costs of financial institutions in the near future. These technologies will effectively manifest themselves in investment and lending issues.
In 2021 the fintech industry will face even more challenges, but modern technology will allow it not only to endure but also to develop. And this means that this year new significant trends may emerge that will contribute to the development of the fintech industry.