Fintech businesses help people make payments and move their cash around easier than ever before, and the industry has seen enormous growth over recent years, with tech changes continuously entering the field. Whenever a purchase is made or interaction with a bank happens, at least one of the 26,000 fintech companies is used. With fintech being one of the largest industries of the modern age, let’s take a look at five exciting trends to follow.
1. Improved Security
Security is a growing trend in all tech-based industries, and fintech is no different. Over recent years and going forward, biometric security is being used to make accounts more secure. These methods include facial recognition, fingerprint scanners, and voice analytics. In some fintech businesses, innovative palm vein recognition is being used alongside retinal scanners.
Outside of biometric security, fintech companies offering mobile payments and digital services use advanced bank account number validation to guarantee users remain safe. Typically, this is delivered through partnerships with businesses like Envestnet | Yodlee, which provides enhanced security, bank account validation, and access to the ACH network. They are trusted by over 1500 companies and work around the clock to keep infrastructures running.
Blockchain is being thrown around everywhere these days, with cryptocurrencies and smart contracts becoming mainstream. Fintech businesses are using blockchain, which is a distributed ledger, to improve functionality and security within their infrastructure. This technology is still in the teething stages when it comes to corporate adoption, but there’s no denying that its future is bright.
3. Mobile Payments and Digital Services
Mobile payments aren’t groundbreaking by any means, but they continue to be improved on and made more frictionless and secure. Neobanks, which exist completely online, are becoming a popular alternative to traditional brick and mortar banks. Their features are extensive because everything is taken care of remotely, which is a motivation for people to make the switch, especially following the global pandemic.
4. Internet of Things (IoT)
The IoT is changing the way the world interacts with everything, from their washing machines to their TVs, which makes it unsurprising that fintech is being changed by IoT. In particular, sensors are being used to read metrics and offer insights into customer patterns. For example, sensors can be put into ATMs to detect how many people are queuing. Also, contactless payments are using sensors to allow small transactions to be paid without the need to insert a card and put a pin into a machine.
5. Voice-Enabled Payments
Before the boom of the tech age, futuristic concepts seen in the likes of Star Wars and Star Trek were a figment of imagination. However, we’ve arrived at the age of voice-enabled assistants like Alexa and Google, all of which can help users to hear their balances. Using Alexa, it’s possible to pay for Amazon services using voice – the future is now.
Fintech is an enormous industry that is growing rapidly. Security is being improved using biometrics and verification systems, smart tech is allowing businesses to gain greater insights, and customers can interact with fintech businesses without the need for cards and PINs.