1. Cutting-Edge Technology
The global fintech is growing rapidly, with investments in fintech startups reaching a new high of $57.86 billion in 2019, according to a report by CB Insights. This is more than double the amount invested in fintech companies in 2018. And it’s no wonder why – fintech companies are using cutting-edge technology to solve some of the most pressing problems in the financial industry. Here are some of the most innovative fintech developments that are impacting the customer experience:
2. Application Programming Interface (API) Banking
API banking is a new way for banks to provide their customers with access to their data and services. With API banking, customers can use third-party applications to manage their finances, make payments, and view account information. These fintech innovation ideas are convenient for customers to bank on the go and avoid logging into multiple apps.
3. Robotic Process Automation
Many banks are using robotic process automation to automate repetitive tasks. This includes customer onboarding, fraud detection, and account opening. This helps to free up staff time so they can focus on more critical studies. These tech innovations also help to improve accuracy and efficiency in the banking process.
Security
4. Security Enhancement
With the increase in data breaches and cyberattacks, security is a top priority for banks and fintech companies. Banks now use biometrics, machine learning, and artificial intelligence to protect customer data. This includes facial recognition, fingerprint scanning, and iris scanning. These technologies help to ensure that only authorized users can access customer Biometrics, such as fingerprint and iris scanning, which are being used increasingly for security purposes. This is because biometrics are unique to each individual and are challenging to replicate. This makes them more secure than traditional methods, such as passwords and PINs.
5. Peer-to-Peer Payments
One of the most popular emerging technologies in financial services industry is peer-to-peer (P to P) payments. This technology allows customers to send and receive money without going through a bank or other financial institution. P-to-P payments are convenient, fast, and secure. They’re also becoming more popular – the number of P to P payments is expected to grow from $17 billion in 2019 to $67 billion by 2024. This technology is not only convenient for customers, but it’s also helping to level the playing field for small businesses. P-to-P payments allow small businesses to compete with larger firms with access to more traditional payment methods, such as credit cards and wire transfers.
6. Mobile Banking
Mobile banking is another fintech innovation that is changing the way customers bank. Mobile banking allows customers to access their accounts, transfer money, and pay bills from their smartphones. This is convenient for customers who are always on the go by readily offering a financial solution in real-time. It’s also more secure than traditional online banking, as mobile devices are less likely to be hacked than computers.
7. Digital Currencies
Digital currencies, such as Bitcoin and Ethereum, are another fintech innovation gaining popularity. These currencies are digital-only banking. A central bank or government does not control them. Instead, they are decentralized and managed by a network of computers. Digital currencies are often used for investment purposes but can also be used to buy goods and services. Fintech allows for the easy and secure transfer of digital currencies in a way that is convenient for customers.
8. Contactless Payments
Contactless payments are another fintech innovation that is becoming more popular. With contactless payments, customers can make purchases without having to swipe their card or enter their PIN. This is convenient for customers who want to make a quick purchase. Contactless payments are also more secure than traditional methods, as they reduce the risk of fraud.
9. Blockchain Technology
Blockchain is the technology that powers digital currencies. It’s a decentralized, distributed ledger that records transactions securely and transparently. Blockchain is often used for financial transactions but can also be used for other purposes, such as supply chain management and identity verification. Fintech companies are using blockchain to create new applications to make the banking system more efficient and secure.
10. Open Banking
Open banking is a term used to describe the trend of banks sharing customer data with third-party fintech companies. This data sharing is done with the customer’s consent and helps fintech companies develop new products and services. Open banking is helping to create more competition in the banking industry and giving customers more choice in the products and services they use. Open banking is also helping to modernize banking software. By sharing data with fintech companies, banks can use the latest technologies to develop new products and services.
It is impressive how much fintech has advanced in such a short period; these are only a few examples. Fintech is changing how we bank and making it easier and more convenient for customers. It’s also helping to level the playing field for small businesses and create more competition in the banking industry. We can expect to see even more innovations in fintech in the future that will continue to impact the customer experience positively.
