Tech Trends Aiding Fintech Sector to Grow in 2021

Fintech is a combination of the terms "finance" and "technology" and refers to any business that uses technology to improve or automate financial services and processes. As technology continues to grow at an unprecedented pace, the fintech industry follows closely. The term is a broad and fast-growing industry that serves both consumers and businesses. However, some technical disruptions were claimed based on improvements at the customer level interaction. Therefore, it will be intriguing to see if 2021 proves to be 'the year of the value chain' for the fintech sector and more innovation in play. 

There are some trends cited below that will cast the fintech sector in a 'path-breaking year' :

• Robotic Process Automation (RPA)

Robotic Process Automation is a technology that uses robots and technological advancements to do the tasks that are usually done by human beings. This year we will observe several organisations and corporations adopting the RPA technology progressively to manage high-volume repeatable tasks. For example, security checks, account maintenance & closing, credit card and mortgage processing, customer onboarding, trial balancing etc. In my opinion, the RPA technology will allow the organisations to perform its regular tasks with effectiveness and efficiency without any human error and freeing-up human resource to handle other significant dynamic tasks such as customer care handling. 

• Artificial Intelligence and Machine Learning (AI & ML)

Artificial intelligence and machine learning are pushing the boundaries of machine-enabled functionalities. It enables machines to perform with a degree of autonomy following the effective execution of frequentative tasks. The primary advantages of AI and ML are multi-tasking, ease of workload, operation 24x7, controlling cybercrimes, identifying the financial frauds and threats. Besides, it improves customer experience as it thrives on seamless collaboration between the enterprise and an individual. According to experts, AI technology will decrease the operational costs and expenses by 22% by 2030 of the fintech organisations. Fintech firms will boost financial and banking development in 2021 by providing banking facilities to the backward segment of society and make banking accessible, fast and convenient.

• Blockchain

Blockchain is a mechanism for storing information in such a way that makes it challenging or impossible to alter, hack, or cheat the system. Besides recording the data effectively, it also ensures transparency and security to the stored data and transactions. Therefore, maintaining the trust of customers in fintech companies. 

• Biometric Security System

The biometric security system is the most sophisticated technology for authentication, verification and identification objectives. The technology verifies the online transaction using fingerprints biometrics or voice recognition software for performing bank-related tasks remotely through an internet connection. However, it has set-backs too as it provides the opportunity to cybercriminals who sit on the edge to find a bleak chance to crash the entire security system. Although the biometric security system is transforming technology, it still has a long way to go. 

In my knowledge, these trends will shape the fintech organisations this 2021 and will provide more promising, customer-friendly interface, efficient environment to both the organisation and individual. Technological-revolution is an evolving revolution, and the only way to be benefitted from them is to maintain the pace with their evolution.