The fintech industry has seen a lot of growth in recent years. It is expected to grow at a CAGR of 15% by 2020. There are several trends that have emerged and are expected to continue for the foreseeable future.
In this article, we will discuss five of the most prominent fintech development trends that have emerged in recent years and will be relevant up to 2022.
What is Fintech Development Services?
Fintech development services are a group of people and organizations that provide software, consulting, training and other services to financial institutions.
Fintech development services can be divided into three major categories:
- Software-as-a-Service (SaaS).
- Business process management (BPM).
- Digital banking or financial technology (fintech).
#1. Accelerated Financial Innovation – Fintech Development
The fintech industry has been growing exponentially over the last few years, with companies like Google, Amazon, Facebook and Apple entering it. The rapid development of this industry has led to a new way of banking – peer-to-peer lending platforms like Lending Club and Funding Circle have made it easier for people to borrow money from their friends or family members. The growth in fintech has also led to an increase in demand for content writers as companies are looking for ways to generate content at scale.
#2. Increased Financial Inclusion and Accessibility
In the past, the world has seen many revolutions that have improved society in one way or another. The Industrial Revolution brought about a lot of change in the way people lived and worked. However, it was not until recent years that we saw another revolution that would change our lives forever.
The digital revolution is transforming how we live and work today. It has led to the creation of new opportunities for people across the globe to be able to make financial transactions easier than ever before. This includes online shopping, online banking, mobile payments, and even peer-to-peer lending platforms like Lending Club and Prosper Marketplace.
While these new technologies have made our lives easier in some ways, they have also created a lot of new problems as well – specifically with regards to financial inclusion and accessibility for people who are not tech savvy or do not own a bank account/credit card/mobile phone etc. In order to address this problem, there are now various alternative options available for everyone – from using a smartphone to send money or using a prepaid card that can be loaded with cash and a PIN number.
#3. Broader Scope for Innovation & Opportunity for Startups and SMBs
The introduction of AI-assisted writing has opened up a new era for content writing. It is impacting the way content is written and consumed by readers. The technology is advancing so quickly that we can expect to see more and more use cases for AI-assisted writing in the upcoming years.
For example, one of the biggest opportunities for startups and SMBs are in the areas of customer service, marketing, sales, PR and communication. AI can help companies handle these tasks with less human interaction and more efficiency.
#4. Repositioning of Traditional Banks as Fintech Innovators
Fintech is the new buzzword in the banking industry. Fintech companies are disrupting traditional banks with their innovative ideas and business models. These companies are changing the way people bank and their business models are changing the game for traditional banks as well. Despite this, some traditional banks have found a way to leverage on this trend and implement fintech solutions to improve customer experience, generate revenue, reduce costs, etc.
The shift from being a bank to being an innovative fintech company is not easy for all banks but it is possible for them to do so if they have a strong customer-centric strategy in place. Some of these innovative strategies include:
- Implementing AI solutions to improve customer experience.
- Using big data analytics in decision making.
- Developing blockchain technology solutions.
- Adopting digital payments methodologies.
#5. New Fields of Innovations such as Blockchain Technology, AI, IoT and Big Data
The future of copywriting is bright and full of innovation. Blockchain technology is a new field that has been gaining momentum in recent years. It’s a distributed ledger that allows people to exchange value without the need for a third party. This makes it possible to transfer funds, property, or anything else of value in a transparent and secure way with no intermediaries.
AI is another field that has been revolutionizing the way we live our lives. It has the ability to learn and make decisions on its own which means it can help reduce human error and increase productivity in many industries including healthcare, education, marketing and finance. IoT is an acronym for “Internet of Things” which refers to the network of physical devices connected to the internet with sensors or actuators that enable these objects to collect data from their environment or communicate with each other wirelessly using computer technology such as Wi-Fi or Bluetooth Low Energy (BLE).