We are currently experiencing a financial revolution. Financial technology, or fintech, is accelerating at an unprecedented pace, changing finance in profound ways.
The global market for fintech services hit a new record of $110 billion last year and will hit $698 billion by 2030. Bit what are the fintech industry trends that are changing how we spend, save, invest, and move our money? Read on to find out.
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1. Smart Contracts
Smart contracts have been pioneered by a number of white-hot fintech startups, such as Agrello and Compound Finance. These are automatic contracts that reside on the blockchain.
They are designed to automatically execute when the right conditions have been met. Smart contracts automate financial processes such as lending and collateral in transparent, secure ways.
2. Instant Lending
Instant lending has the financial industry incredibly excited right now. The fintech guru and thought leader Carlo Giugovaz recently identified it as one of the most significant banking industry trends of 2022. That’s why he has invested heavily into this high-growth service.
As the name suggests, instant lending is the process of granting loans almost immediately.
An instant lending algorithm will analyze thousands of data points to assess the ability of the applicant to repay the loan,bringing a whole new meaning to the phrase “smart banking”. Thus far, Amsterdam-based ING is the largest financial institution to issue instant loans.
3. Voice-Enabled Payments
Apple, Google, and Amazon have all made major strides into voice-enabled payments (VEP) technology in recent years. Meanwhile, the banking establishment struggling to catch up.
VEP uses systems such as Siri to enable people to withdraw funds, make deposits, and see their bank balance via voice command.
This could be a gamechanger for visually-impaired people who might struggle to access their accounts manually. Voice-enabled payments could also prove to be a valuable security and verification measure in the future.
4. AI & ML
We’ve heard plenty of talk over the years of how artificial intelligence and machine learning are going to revolutionize everything. While many of the big predictions have not come to pass just yet, it’s clear that the financial industry is betting big on this technology.
AI and ML are used across the sector for application screening, risk assessment, forecasting, and data management. Meanwhile, virtually every major bank now uses AI-powered Robo-advisors to field customer queries.
5. Biometric Security
Cybersecurity is likely to be the biggest challenge facing banks in the decade ahead. Successful cyber-breaches have soared to record highs, with millions of customers in the US alone being impacted.
One of the major fintech cybersecurity trends right now is the use of biometrics to protect customer accounts. This means using fingerprints, retinal scans, and facial recognition to protect accounts and financial data.
If you don’t already use one of these features to access your mobile banking accounts, you probably will very soon.
The Fintech Industry Trends That Affect You
These are the fintech industry trends that are changing our relationship with money. It may be early days, but these technologies have the potential to make all of our financial activity safer and more efficient.
If you’re interested in learning more about the fintech trends that impact you, we have got you covered. Make sure to consult our expert Finance section for daily insights and updates.
