Progress in the world of technology extends to each industry in different ways, with some being slower to adapt than others. One industry that has always been forward-thinking in these trends is the financial industry. With so much riding on the movement and management of money, a huge investment in new technology is fully justified — and it’s why there’s such a thing as fintech.
In principle, fintech is a sub-industry or sorts, but it’s so big and so consequential that it’s more often viewed as a distinct industry that exists alongside finance and technology. Businesses of all kinds pay close attention to fintech’s development because they know they can benefit from it.
In this piece, we’re going to look at 5 trends in the fintech world that are sure to benefit online businesses ready to embrace new possibilities (for more fintech trends, I recommend taking a look at this article). Let’s get to them:
It isn’t unusual to find websites with chatbots ready. They’ve been adequately sophisticated to serve as simplistic support assistants for some years now, and they’re perfect for everything from fielding basic queries to providing product suggestions — and even taking orders. But adding an order to a system is an internal matter: what about the banks. Well, financial institutions are increasingly allowing transactions to be logged by automated systems. Accordingly, businesses can get ahead by supporting chatbot-based payments.
Traditional retail was dominant (towering over mail-order shopping) before the ecommerce industry came along, and for a time the focus was squarely on the digital world. In recent years, though, many online retailers have come to understand that the two don’t need to compete: one business can be very successful with a hybrid approach (online and offline retail together, now embraced by some top systems), adopting the ethos of cross-channel selling and using each to enhance the other.
Fintech trends in microlending systems
Business often demands investment, but what form can that investment take? Traditionally, options have included angel investment (bringing in a third-party investor to fund an operation), bank loans, or the classic loan-from-a-friend. Microlending — proven as a viable concept by sites like Kickstarter — concentrates on bringing in numerous small investments from various lenders. This minimizes return, but it also minimizes risk for the lenders. As more microlending operations become approved by financial regulators, it will become easier for startups to get off the ground without needing to take old-fashioned investment routes.
Also abbreviated as RegTech, this technology is all about helping organizations adhere to financial regulations by ensuring that data stores and transactions are handled correctly. Ever since GDPR went into effect, companies worldwide have faced much stricter oversight, so anything that can be done to make compliance less time-consuming is extremely valuable (large organizations can easily spend huge amounts of time dealing with admin alone).
fintech trends with payment biometrics
Ever since it became normal for smartphones to have fingerprint readers and front-facing cameras capable of sophisticated facial recognition, the options for payment biometrics have deepened significantly. While no biometrics system is perfect, the combination of a fingerprint and a recognised face is massively safer than an easy-to-remember password. By making better use of enhanced fintech security, businesses can offer user experiences that are simultaneously safer and more convenient than password-based systems.
These fintech trends aren’t the only ones to consider, as noted at the beginning, but they are particularly significant when it comes to running online businesses. Everything such a business can do to cut down on time spent doing admin tasks is enormously valuable. Everything that boosts user experience is a huge boon to website and app performance.
If you weren’t previously aware of these trends, then keep them in mind as you plan the 2020 roadmap for your business. And if you were, then check to see how you can fit them into your strategy, because they’re certainly worth that level of attention.