Recently, most financial technology websites are reporting that consumers have reportedly lost interest in the traditional banking system, this is due to the enormous benefits Fintech startup offers it consumers by making life more comfortable through the use of digital technologies.
Also, new financial technology index shows that the provision of seamless financial services online is mainly responsible for the considerable success of Financial Technology and this is possible with the introduction of new technologies which are making investing, managing and spending easier.
Even with these developments, there are key technology trends which will positively affect the Fintech Industry in the coming years, and they include:
Blockchain: Financial Technology ratings shows that distributed ledger technology or blockchain can be relied on to bring transparency to a world filled with threats of fraud and uncertainty. A significant number of financial players are joining hands in a consortium to rebuild infrastructures based on this new technology to replace the incompatible and legacy systems. From cross-border payments to trade finance platforms and digital identification, removing these inefficiencies caused by lack of transparency is a primary reason for implementing this new technology. The blockchain is streamlining the exchange of value all across ecosystems by establishing innovative networks and eliminating these intermediaries in business processes.
Human Digital Interfaces: Most of us cannot go a day without using any of our digital devices, so it is a conventional seeing mobile technology becoming an integrated part of our lives. We are already using our voices to make commands rather than typing or tapping on our touchscreen. The biometric finger is taking over passwords while retina, eye check have become part of security checks. Our emotional state is now being gauged on our interaction with our devices by technology as you can trigger action through gestures. In the coming years, it is expected that these interfaces will be perfected.
Artificial Intelligence and Machine Learning: Artificial intelligence and machine learning have become a discussion which has been dominating the tech world for many years. IBM refers to it as cognitive computing, and this emphasizes that artificial intelligence should not replace human knowledge but augment it. Most Financial Technology websites state that artificial intelligence in finance is helping to detect and fight fraud before human recognizes it. Several compliance regulations are being fed into Artifical Intelligence like IBM Watson to help businesses stay on top of the dynamic world. Chatbots built with AI can help agents address and satisfy customer questions or problems, with no human power. Similarly, in wealth management, Artificial Intelligence is assisting with stress testing in market scenario and to help in removing market biases from decisions to make during investments.
APIs: Creating applications with the aid of APIs is now seen as the best way to address the business and economic challenges affecting the financial industry. Fintech startups are taking over the landscape through the creation of mobile applications that have challenged and surpassed the banking industry. Through the use of APIs, these dynamic and small businesses can innovate with speed and agility that even the more significant and more prominent sectors are unable to duplicate. Banks are now investing heavily in creating mobile applications while taking part in developer sandboxes and API economy. Due to the number of data banks have collected over the years, they are likely to regain dominance in this area.
Quantum Computing: Quantum Computing enables a computer to store an enormous amount of information with little energy required. A traditional computer system uses bits which are either in0’s or 1’s while Quantum computing uses qubits. Quantum Computing will not replace the computer system but will address and solve computational problems. In addition to providing solutions to the problematic computational issues such as maximizing the investment returns, the accuracy to be achieved in AI or machine learning should be considered.
Finally, new Fintech ratings show that the Fintech industry will remain at the forefront of innovation for many years. Technology developments that will take years to design and execute by big financial institutions are going to the real world in little time due to Fintech Startup. While the security risks remain unchanged, we, the consumers who are seeing the benefit and functionality in our banking and financial experiences are the winners.

Davide Zucchetti Fintech Review

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Published by Davide Zucchetti

Co-founder HiSkill; Business School Sole 24 Ore Professor; ICOBooster Co-Founder; FintechReview Co-Founder