by Sayantani Sanyal
June 1, 2021
An insight on the current technology trends that are transforming the Fintech industry.
Fintech, also known as financial technology, is a remarkable transformation in the finance sector. Nowadays, it is difficult to imagine the finance industry without the intervention of modern technology. Maintaining the social distancing protocols amidst the Covid-19 pandemic has also sped up the digitalization of the financial sector. India is considered one of the fastest-growing fintech markets on a global scale.
These recent technological innovations and growth in the fintech industry are accreditations to the government initiatives and the tech enthusiasts and startups coming up with innovative solutions to complex problems. Various innovations like mobile wallets, digitized money, paperless lending, and such others have sped up the growth of the fintech industry.
After anticipating the future of the Fintech industry, economists and policymakers are redefining the regulations and policy frameworks based on the new technologies. Here are the top technology trends that are reshaping the fintech industry.
- Digitized Banking– Over the years, banking has been the primary process to perform payment and transaction activities. But with the growing technological developments, traditional banking systems are moving towards fintech. Financial technology companies are innovating transaction and payment processes that will not only encourage economical and profitability transactions but also ensure convenient and faster procedures.
- Cloud Computing and Big Data Analytics: Banks are using cloud computing to avoid repetitive, laborious tasks and work efficiently. Other advantages of employing cloud computing are efficient storage, management, and assessment of information. Tech companies that use cloud computing also assist banks in innovating unique and personalized solutions for better customer experiences through automation.
- One of the chief advantages of cloud computing is the efficient storage of large data sets allowing swifter data analysis. It helps the companies reach remote markets and audiences, irrespective of their locations.
- Using data analysis in fintech is not just about an inclination. It is a complete transformation. The recent progress in the banking and financial sectors will continue further, especially after the adoption of mobile technologies and IoT.
- Biometric Security Systems: Organizations across the globe are collecting, storing, analyzing, and processing large data sets, including sensitive customer data and personally identifiable information (PII). Mishandling such sensitive information can have serious repercussions leading to poor reputation and financial losses for the company. To avoid such situations, several companies are installing biometric security systems to amplify their security protocols.
- Biometric scanning is an important aspect of security systems as it allows access to information to only authorized personnel. Even though biometrics guarantee better security than passwords, companies should constantly update themselves with the developing technologies and not underestimate the capabilities of hackers.
- Robotic Process Automation: Robotic process automation (RPA) is a new technology adopted by the financial markets to automate manual processes. RPA in finance allows human-like automation of repetitive tasks. Instead of depending on APIs to combine several systems into a single platform to perform set routines, RPA notes the user’s actions in a graphical user interface (GUI) and repeats those actions in the same platform.
- Voice Bot: Chatbots have dominated major industrial sectors including finance. Voice bots in fintech help with automated solutions in terms of customer assistance and management. It assists customers facing language barriers by localizing end-to-end interactions between the customer and the company.
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