10 Trends in Fintech Technology

In recent years, the fintech technology sector has flourished, with creative firms upsetting traditional banking and payments. Customers no longer have to stand in large queues at actual bank locations to complete simple banking chores. Banking operations may now be carried out online because of technological advancements, particularly the advancement of financial technology.

Fintech applications have transformed how consumers and organizations interact with financial services by combining finance with cutting-edge digital technologies. This has given users unparalleled access and convenience in handling their money, while also allowing fintech firms to put their business ideas into action.

To summarize, AI, IoT, and blockchain will remain at the forefront of the financial revolution. However, the technology behind financial app development needs additional examination.

10 Trends in Fintech Technology

1. Artificial Intelligence.
AI is seen as the most significant invention impacting fintech. According to Research and Markets, the global market for AI in fintech will reach 22.6 billion USD by 2025.

AI is used in fintech apps to automate regular procedures, provide tailored financial advise, detect fraudulent activities, and analyze large amounts and types of data for insights. AI in fintech is still a developing technology in many ways, and its full potential has yet to be realized.

2. The use of big data
Big data and AI are inextricably linked. Electronic gadgets leave a digital trail in the form of unstructured data, which fintech apps compile and submit for analysis. The data is then processed by AI algorithms to yield useful insights about new company prospects, consumer behavior, and industry trends.

3. Blockchain
The electronic distributed ledger is known as the blockchain. The ‘blocks’ in the ‘chain’ are groups of data that, when combined, create a single entity. The data recorded in a blockchain is spread over the whole blockchain network and does not reside on any single server. Because there is no central node that hackers can target, this maintains the security and integrity of financial transactions.

4. Data safety
Cybersecurity is critical while designing a finance app. When it comes to securing extremely sensitive financial data, traditional methods are ineffective: fintech firms must rely on sophisticated technologies such as Source Code Analytics, penetration testing, and the DevSecOps strategy to safeguard their clients’ information.

Furthermore, according to the EU GDPR Law, fintech organizations must demonstrate their commitment to securing customer data and do all possible to avoid security dangers such as malware attacks and identity theft.

5. Microservices
Microservice technology is a method of designing an app as a collection of interconnected services. One undeniable advantage of microservices is the ease with which a service may be added without disturbing the overall program structure. Microservice technology works in tandem with AI and blockchain to lower the cost of developing financial software.

6. Voice-activated payments
Digital financial management does not imply looking at your smartphone and typing and searching for information. Natural language recognition, processing, and generation are significant fintech developments that allow you to check your balance and perform transactions without ever picking up the phone.

Your finance firm will get even more clients with voice-enabled payments, as voice assistants improve consumer ease.

7. The use of biometric technologies
Biometric authentication technologies are critical to the future of finance. Face or voice recognition and fingerprint scanning are among today’s top fintech trends, but they will undoubtedly become standard security features in the future years.

Palm vein patterns and iris recognition possibilities might be the next ways to amaze your clients. The beauty of biometric technology is the mix of unbreakable data security and simple login.

8. Open Banking
When you understand what open banking is, you can immediately get your fintech firm closer to the niche leaders. This is because, by utilizing third-party APIs, you can provide your clients with even more options, enhancing their overall experience. For example, owing to open banking, we may utilize a single bank account to make payments on many platforms while also receiving tailored suggestions.

9. Virtual Cards
Bank cards have the potential to completely replace cash payments. Furthermore, cards will most likely become digital, making transactions as simple as feasible.

Your fintech firm may use the capabilities of VISA and Mastercard-based virtual cards to ease both ordinary payments and complicated investments, including cryptocurrency transactions, for your clients.

10. Gamification
You’ve most likely heard of gamification as a strategy for improving a client’s emotional involvement. As a fintech trend, you may utilize a game-like design to assist consumers in reaching financial objectives or developing healthy money habits.

For example, you might help your clients manage their spending and savings, or you may provide cashback reward schemes.