Our current banking transaction habits have arisen from years of innovation from big banks and smaller tech entities. These entities have worked together to develop convenience, accuracy, and speed enhancements that benefit banks and their customers. The ability to move money electronically, invest in cryptocurrency, use bots to aid in our finances, and quickly retrieve information about our accounts comes from years of work by financial technology companies.
What Drives FinTech Trends?
Customers demand ease of use, accuracy, speed, and convenience, and the banking industry, through FinTech solutions, has met and exceeded these demands while maintaining its business outcomes. Two areas, in particular, have driven FinTech companies over the last few years: cybercrime and customer experience.
Cybercrime’s impact on consumers has never been more significant. Identity theft and fraud damage consumer accounts and can devastate a business. Banks that handle security threats well and have developed proactive fraud detection now lead the list of best customer service offerings.
Additionally, banks with streamlined processes such as loan applications and secure signing portals also rate more favorably with consumers who lack time to deliver documents and signatures in person or by mail.
What’s Next in FinTech Solutions?
FinTech companies have identified five new trends for the following areas of focus: the Internet of Things, including wearables, personal banking, cryptocurrencies, artificial intelligence or AI, and big data. Here’s a look at each of these areas and their relevance to the future of banks and their customers.
Internet of Things (IoT)
This broad technology category crosses several industries, including kitchen appliances, wireless networks, and automation. In its uses in banking and FinTech, trust relationships become stronger through accounting records comparisons and inventory tracking. Additionally, wearable technology like continuously-authenticating wristbands for bank customers can bring banks closer to their customers to anticipate their future needs.
Personal Banking
Personal banking has already deeply evolved due to FinTech development. Helpful banking bots available through mobile apps allow bank customers to get what they need from their bank without relying on face-to-face customer service reps. Another way is the accessibility of account information through secure apps and the internet.
Cryptocurrencies
Cryptocurrency use will see a surge in the next decade due to its high rate of fraud prevention and its safeguards against identity theft and money laundering. Cryptocurrency also makes money transfers extremely fast and efficient, especially across borders, saving consumers and institutions time and money.
Artificial Intelligence, or AI
Robotics use has already changed the banking landscape and will continue to grow as more banks employ robots to automate and standardize business executions.
Banks already assign tasks like reconciliation and back-office processes to AI entities due to the lack of human error and the ability to streamline everyday processes.
Big Data
Data collection is a serious business. Although privacy concerns loom over data collection practices, the banking industry employs collected data to deliver quality services and anticipate future trends in the industry. Banks can tailor offers and perks using data aggregation, and more often than not, the customer experience is better for it
Most of these FinTech innovations utilize and aggregate “information everywhere.” Big data and The Internet of Things do not exist without one another. Sensors, analytics, and decision-making assistants combine to deliver tailored customer-centric experiences driven by behavior analytics.
Find Out More
Increase your customer service offerings by learning more about these FinTech trends. Contact Pay Tech Trust to help you identify how these innovations can benefit you and your company.
PayTech Trust offers secure merchant accounts and online credit card processing for businesses of all sizes. With our collaborative suite of services and best practices to integrate new payment trends, PayTech Trust has the experience and the expertise no business can afford to do without. Contact Our Sales Advisors
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