FinTech & Mobile Devices
Few technological advances have made an impact on the world at large and on financial services specifically than the rise of the mobile phone. Banks and other financial service firms have capitalized on developing mobile applications to bundle their service offering for consumers.
Statistics show that customer visits to physical bank branches by 2022 will reduce by as much as 36%. Additionally, transactions carried out on mobile phones are expected to increase. That points to a sharp uptick in customers moving to transact on the go (as much as 88% of all transactions) that the FinTech community ought to pay attention to.
Increasing FinTech Investment By Traditional Banks
Traditional commercial banks have invested years in fine-tuning their business models. With the rise of FinTech as a threat to their way of life, making FinTech investments has been a strategy they have adopted to stay ahead of the curve.
Traditional banks choose to either make full acquisitions of rising FinTech startups or seek partnerships. These partnerships are shaped to deliver win-win outcomes. The traditional banks tap into the innovative startup’s skill and the startup gains more resources to grow their business.
The Adoption of Artificial Intelligence
Artificial Intelligence (AI) is increasingly playing a greater role in spurring growth in FinTech. Using AI FinTech firms are making data analysis more efficient via automation.
AI can help FinTech firms combat fraud by assessing large batches of data to identify fraudulent patterns. More and more use cases for AI in FinTech will only lead to its increasing adoption.
The trends of FinTech are that there will be far more automation than we are currently seeing. You’ll be able to make financial transactions simply and in the blink of an eye using only one application on your mobile device. People are demanding more mobile technology than ever before, and with this demand, newer and faster technology will be invented to meet this demand.
FinTech is a highly dynamic space that keeps delivering new innovations and ideas on how to deploy these technologies. From processes to security and even changes in consumer behavior new patterns are emerging that FinTech players ought to note to stay ahead of the transition.