5 trending changes in FinTech Industry:

1. Mainstreaming of Mobile Banking

According to G2 Crowd, “the worldwide volume of mobile payments will

grow by 60% over the next two years.” Mobile banking puts control into the
customer’s hands while breaking down barriers to access. However, this
Fintech trend covers a range of payment options, including virtual currency
and blockchain. The Fintech Times calls these technologies an “Internet of
Payments,”  and all of these choices change how consumers view mobile
banking and fund transfers.

 In the US, consumers feel comfortable with wallet-less options and

rally behind big players, like Google and Apple.
 On a global scale, access to payment options allows a greater
number of people to interact with companies and complete everyday
transactions without a traditional bank account.
 Payment options use blockchain technologies to verify identities for
greater financial inclusion.
While customers embrace smartphone payments, those in the financial
services industry worry about how their technology stack will handle
increased transactions. However, the upcoming 5G technology ensures
that networks can handle higher quantities of transactions and provide a
reliable experience. As more consumers leave behind their credit and debit
cards, conventional institutions that adopt digital payment features will
attract and retain customers.

2. Blockchain Technology

According to the report by Business Insider Intelligence, 48% of

banking representatives believe that new technologies like
Blockchain are going to have the biggest effect on banking through
2020 and beyond.

Blockchain is predicted to bring about a worldwide transformation in

financial systems. It does not just provide new technology but also a
new philosophy of decentralized finance that concentrates on
reducing centralized procedure.

By now, Blockchain technology has inspired the development of

different online peer-to-peer financial platforms that allow monetary
interactions for taking place more decentralized manner. It’s a
distributed ledger technology that can improve current procedures
and systems. Banks are already using Blockchain technology with
the hope of reducing expenses and enhancing internal procedures.

3. Artificial Intelligence

Since bank revenues are surpassing the countries’ incomes,

undoubtedly they will adopt the AI at first. These days, banks are
fine-tuning their AI solution tactics, which will enhance the greater
acceptance of AI in the sector.

According to Autonomous research, AI is planned to lower the

operating expenses of banks by 22% around 2030, which means
that banks can have $1 trillion savings. Nevertheless, the way
toward this outlook can be difficult. Simply like other global
employers, banks don’t have a lot of AI-skilled experts.

Being capable of working with unstructured information, AI is well-

balanced to manage the rising cybercrime incidents, financial
fraudulence threats among them.

Artificial Intelligence has already become popular having the most

efficient client service software using some smart systems like
chatbots. FinTech institutions won’t be an exception, enabling
quicker transactions and providing clients the feasibility they look
for.

4. Payment Innovations

In FinTech, payment innovations have many elements, including

contactless payments, mobile payments, smart speaker systems,
mobile wallets, AI and machine learning for security, and identity
verification technologies.

Gen Zers will be the competent driver of payment innovations.

Mobile payments will increase further in 2021. In 2018, almost 440
million people were using contactless payments. This target is
about to reach 760 million through 2020.

5. Reg-Tech

The financial industry is a regulated sector and FinTech innovations

need a simultaneous growth of Reg-Tech. This indicates new tech
solutions that enhance and organize regulatory procedures. Reg-
Tech has evolved regarding the highest institutional demand that
has appeared from the massive development of compliance
expenses.

Reputed financial actors, tech firms, and legislators will work

together for introducing new regulatory innovations; however, these
require time for maturing.