2020 was a hybrid of physical and digital platforms. Now, in 2021, we are more focused on the mobile app development, which covers both Android app development and iOS app development. Banking has become more socially isolated and guarded as a result of the online platform. This is something that the FinTech apps industry has put into use. This has led them to believe in providing rapidity, pleasure, and convenience of exposure to innovative clients. Let’s check out some of the 2021 trends in FinTech Apps that seem promising to propel the financial services industry forward.
What is FinTech Apps?
FinTech Apps refers to the combination of finance and technology. We’re assuming you’re not thinking of it as a brand or Web Development. This phrase is more frequently used to define technological developments and the patterns that surround them.
FinTech caters to all types of financial services and solutions most innovatively, from artificial intelligence (AI) to e-commerce. It also incorporates a variety of banking software into a digitalized ERP solution for more productive and speedy banking.
There’s no need to monitor invoices, receipts, payments, or deposits now that we can access more safeguarded finance-related services via applications. Hence, we can assert that FinTech solutions have made transactions easier than ever before.
Top FinTech Trends to Consider in 2021
1. Tech-powered Collaboration
During this pandemic, a study has concluded that nearly 40% of employers are working from home. Given the current circumstances, digitally securing work files is critical. As a result, when converting a physical document to a digital one, a high level of precision is required.
FinTech apps from tech companies have solid architectural elements that ensure that all papers and files are safeguarded within a bubble. Of course, you can use simple web-based API tools to access them whenever you want.
2. Control of Large Amounts of Data
To make research on a certain element, organizations require to collect ample data. They incorporate data from loan application forms, tax returns, financial records, and a variety of other sources. Because such large amounts of data often come unstructured, analysis efficiency suffers.
FinTech developers are to thank for being able to construct apps that can assist in data sorting. These apps have robust analytics capabilities that help you quickly obtain all of the information you need. These programs make data collection and reading easier, allowing for more efficient processing.
In 2021, good data insights are essential in identifying prospects and refining products and services.
3. Banking Collaborations
The pandemic scenario has had a significant influence on a wide range of companies, forcing each industry to rely heavily on the internet. It’s no different when it comes to banking systems. Because we’ve already covered the pandemic’s impact on this field, it’s not difficult to figure out what kinds of obstacles each bank is up against.
Banks and other financial institutions play a vital role in people’s daily lives. These industries are now cooperating with innovative FinTech startup companies as a response to these problems.
There are various reasons for them to collaborate. The first is that they require fresh clients to flood into their services, just as they did before the pandemic. Next, present circumstances are causing existing clients to leave because there is nothing new to keep them on board.
As a result, banks are collaborating with startups to develop innovative ways to acquire new consumers and communicate with them across different platforms.
For perhaps the first time, a large portion of the populace used digital banking and found the benefits it provided over traditional banking. It’s critical to secure more consumers to stay ahead of the competition.
As a result, simplified ways for incorporating operations and data are critical for launching services successfully. FinTech developer-created apps play a significant role in quickly benefiting banks, whether through integrating functionality into new software or adding features to existing legacy systems.
The FinTech industry has changed ever since bitcoin technology has been introduced into this sector. This industry has now got a lot safer and allows conducting more stable transactions.
Business Insider Intelligence revealed that nearly 48% of the banking representatives agree with the fact that Blockchain technology has positively impacted the overall outlook of the banking system the most in 2021. It’s even believed that these effects will prosper even more in the upcoming years.
The new decentralized financial model, which focuses on minimizing centralized procedures, is what sets Blockchain different. It gives us the word to secure the stored data throughout the way with minimal risk and that the data is kept safe.
5. Machine Learning and Artificial Intelligence
Which bank wouldn’t like to lower its operating costs? According to an Autonomous study, implementing artificial intelligence (AI) into a bank’s operations can save up to 22% of the bank’s overhead expenses by 2030. And it is for this reason that every bank is incorporating AI technology into its operations.
If you’re curious about the quantity of the profit, here’s an insight into how much it is. Banks might save up to $1 trillion by introducing AI into their systems.
It’s not easy to provide reliable financial services over the internet. And, as more transactions go online, ensuring their security is more important than ever. What role does AI play in this scenario? Artificial intelligence (AI) is a strong tool for combating escalating cybercrime by detecting financial crimes and threats. Let’s have a look at some examples.
Banks must quickly respond to customer inquiries and ensure that transactions are secure. For the time being, thanks to AI, smart chatbots can simply answer questions, and tools that verify the legitimacy of KYC documents can easily avoid abnormal actions. In addition, other advanced features in FinTech apps will help to improve the accuracy and personalization of financial services significantly by 2021.
6. Financial Inclusion
According to a World Bank analysis, pandemics have robbed nearly 1.7 billion individuals around the world of financial services. Because of the limited availability of services, this statistic focuses primarily on underdeveloped countries. These places, however, are densely populated with cell phone users.
FinTech companies have seen this as an ideal chance to use their apps to deliver solutions to improve financial inclusion. Furthermore, consumers who previously lacked access to financial services can now use applications to get branchless services.
FinTech apps’ ultimate goal is to provide banking services to the unbanked, and 2021 is all about innovation. As a result, improving financial inclusion is crucial for making services for the unbanked easier, faster, and more convenient.
7. E-commerce Mobile App
There has been an ever-increasing situation for online shopping since the outbreak of the epidemic. Thousands of e-commerce startups have sprouted up all over the world. Even those who used to have physical stores are now relying on e-commerce solutions.
During the pandemic, it was reported that roughly 45 percent of the population shifted to online purchasing. Additionally, 40% of online customers prefer e-commerce websites for shopping. As internet shopping becomes the norm, most regions will see an upsurge in e-commerce in the coming years.
8. Biometric Security Systems
As the globe moves more and more to internet platforms, cybercrime occurrences are becoming increasingly common. One of the most troubling causes for the majority of people’s lack of faith in online banking is this.
In 2021, we’ll have more financial instruments in our pockets, and the fact that they’ll be accessible in a flash is yet another major achievement of modern FinTech. Biometric security systems are here to help secure all of our files and resources as a solution.
Biometric sensors allow banks to improve their security process without putting their customers at risk. This not only speeds up the process of logging into the system but also improves the operation protocol. Facial recognition is a more secure biometric security. They are more accurate and dependable than fingerprints.
We’re all instructed to avoid touch during this COVID-19 situation. Incorporating biometrics into banking activities ensures that the bank and the user are both contact-free and secure.
9. Voice Technologies
Voice help is one of the most exciting tech innovations in the FinTech business. This technology is currently being employed in new Bluetooth speakers, which are being used by a variety of enterprises.
Despite being a cutting-edge technology, voice assistants are limited to a few features. Providing basic account information, articulating card balances, responding to typical client concerns, setting up recurring payments, organizing calls, and directing consumers to the appropriate location are just a few examples.
A customer’s voice is used as biometric data and is used to authorize payments as part of the security. This can be added to the list of biometric security features.
People are likely to be able to conduct transactions using voice recognition soon. As a result, you’ll be able to send money more securely using systems like Square Cash, PayPal, Monzo, Pingit, and others. According to a recent survey, the percentage of US individuals who use this feature in 2022 will range from 8 to 31%.
However, ensuring the accuracy of these technologies is an endless task. As a result, FinTech should provide more voice technologies to the market in 2021 for more customization.
10. RegTech in Financial Services
The term “regulatory technology” refers to the application of technology to the regulatory process. Businesses frequently invest a significant amount of money in this technology. It uses technological advancements to change and improve the overall regulatory structure to better regulate the financial industry.
Businesses use RegTech because it offers advanced software that aligns their operations with current rules and regulations. They can be divided into several categories. Identity management, regulatory reporting, transaction monitoring, risk management, and compliance software are just a few of the options.
Banks that use this innovation can minimize admin expenses, protect clients, and secure everyone’s financial security. The icing on the cake is that it promotes speed, flexibility, integrative capacity, and analytical ability as well.
RegTech maintains its extreme accuracy by analyzing and interpreting patterns found in massive sets of historical data. It assists in detecting any irregularities or fraud faster than ever before.
11. Last Mile Delivery Management
The goal of last-mile delivery businesses is to provide clients with valuable services. And to start the conflict, all e-commerce enterprises converge on this area, each attempting to give more useful services than the others.
E-commerce stores must have the following capabilities to give better services to their customers:
- Analytical ability to forecast collection and delivery locations based on data.
- Ability to develop ideas for improving delivery routes using delivery route planner and adapting to changes to help delivery boys tracking and delivering services efficiently.
- Using last mile delivery operations management to keep track of how well delivery is going.
- Ability to use delivery boy live tracking GPS technology to give consumers more visibility and control over their delivery experience from beginning to end.
Despite the complexity, effort, and expense required to implement this framework, it is estimated that all last-mile service providers in the United States will generate $200 billion in revenue by 2025. It means that introducing FinTech apps into such businesses can help them reach new heights more quickly.
However, each company’s strategy and expenditure will be influenced by if they have enough capacity to supply a cost-effective same-day delivery service or if it is more cost-effective to use a partner’s distribution channel and supply management skills.
Ridesharing apps are becoming increasingly popular. Many ridesharing startups are relying on FinTech apps to update their interface and operations for integrating online payment procedures, as the ultimate goal is to provide contactless services during transportation booking.
These innovations are typically tried by established ridesharing businesses, for instance uber-like apps, since they can readily perform experiments to determine customer preferences.
Since FinTech began offering solutions through applications, financial services have progressed at a breakneck pace. These cutting-edge apps are now offering improved services such as faster access to financial data, increased transparency, faster transaction processing, more secure identity authentication, and better customer lifecycle support.
FinTech apps are continually prospering as a result of extensive study and supplying exactly what clients require. 2021 trends in FinTech apps will astound you with unique ways to supplement both security and pandemic scenarios.