The Future: The Next 3 Phases of Fintech Evolution
If Fintech’s acceleration was massive in 2020, then this is the year when we’ll finally be settling into the new reality of digital financial services. It’s true — central, commercial, and retail banks have had to take their services online since it was no longer optional following the pandemic. However, with 2021 nearing an end, we hope the year will bring forth more proactivity and not reactivity.
Digital financial services are now mainstream, thanks to significant market uptake. As a result, all financial firms ranging from banks to Fintech companies had to adapt to the surge in consumer numbers. This also tested the companies’ ability to handle heavy traffic and scalability fabric.
In the years to come, Fintech developers and consumers are expected to incorporate tech trends as predicted by credible studies. We dug up three such trends taking shape in the Fintech world. Take a look below.
1. Banking Partnerships
Banks are no longer running competing products with their Fintech counterparts, which is a good sign. This technique is meant to help them serve their clients better while engaging new ones over new channels.
All signs indicate that the pandemic might have rid the world of several obstacles to digital transformation in the finance sector, forcing brick-and-mortar banks to evolve. In the same spirit, banks partnering with startups will need to integrate their data and operations to remain relevant.
2. Customer-Focused Implementation
Financial tech has presented consumers with a new way of interacting with financial institutions. Most organizations’ products and services are primarily customer-based, which is a big win for the millennials. As such, futuristic financial organizations ought to focus more on customer experiences when crafting products as opposed to the needs of the industry.
For example, it probably sounds prudent to create banking products that foster better communication for customers. Other crucial elements include convenient access to services, reduction of manual processes through automation, and building more robust solutions capable of handling simultaneous tasks by thousands or millions of users.
3. Correcting the Epidemic Damage
Even with the rise in digital financial services, we can never run away from the negative impact of the pandemic. Social distancing has been a must for workers who are now forced into isolation or home working. These restrictions could be lifted, but industries as still bleeding from the virus damage. As part of the recovery efforts, now would be the best time for financial institutions to re-examine their Fintech applications and overall infrastructure.
Developers will need to present better solutions for routine tasks such as document viewing, files conversion, software functionality, data capturing tools, and more. This will save time and money for institutions and consumers. The auto-generate feature will also permit the digital signing of documents rather than doing it face-to-face.
Due to a dramatic past year, even state institutions including regulators and central banks have shifted to digital platforms. And in 2030, we’ll certainly look back to a decade full of disruptive innovation.
All in all, 2020 was about swim or sink; hopefully, players will learn to surf this year.
Read next: The Future of Digital Banking