Top Technologies that will Transform the Fintech Industry

Financial Technology or fintech is revolutionising the way businesses and governments function worldwide. This innovative solution refers to the application of technology to improve and optimise the use and delivery of financial services.

Fintech startups build intelligent software and algorithms that help business owners and customers easily and effectively manage various financial operations. Some of the ingenious existing examples of fintech are mobile payments, online financing, stock trading, insurance, etc.

According to a report by Statista, there were 10,755 fintech startups in America, 9,323 in Europe, the Middle East, and Africa, and 6,268 in the Asia Pacific Region in November 2021.

Another report states that the global fintech revenue is expected to grow from 92 billion euros in 2018 to 188 billion euros by 2024 at an average growth rate of 12%.

Fintech has considerable potential to disrupt the traditional banking and finance industry to improve and automate financial services. Considering the evolving rate of technology, a fintech startup must remain updated with the current trends to keep up with the market. Hence in the following sections, we have listed the five technology trends that can skyrocket the growth of a fintech startup. Also, how the Best mobile app design & development company in the UK can help you in Fintech App development.

1. Artificial Intelligence

Artificial intelligence or AI imparts the problem-solving and thinking capabilities of humans to machines. In recent years, the fintech industry has become heavily dependent on AI for numerous purposes like decision making, improving digital payments, identifying purchasing behavior patterns, etc.

The global AI in the fintech market will grow from USD 7.25 billion in 2021 to USD 24.17 billion in 2026 at a CAGR of 27.6%, reports Business Research Company.

AI can increase the value of the global banking industry by USD 1 trillion per year, says McKinsey.

AI applications like chat interfaces, wealth management, facial recognition, price forecasting, market trackers, etc., will be prevalent in the future and lead to an exponential rise in value creation. In addition, AI will drastically decrease the events of cybercrimes and financial threats because it effectively deals with unstructured data.

2. Blockchain

Blockchain is one of the most significant disruptive technologies that will radically change traditional financial services. It can be described as a digital ledger or database that records and distributes transactions in a business network.

Financial institutions use blockchain to increase security, reduce costs, and boost efficiency. This technology has been rising since 2018, tempting banks worldwide to adopt this innovative solution to secure their financial transactions.

According to research, the global blockchain in the fintech market can grow at a CAGR of 75.9%, increasing from USD 230 million in 2017 to USD 6228.2 million by 2023.

Blockchain records encrypted transactions that are impossible to penetrate. At the same time, it reduces the chances of hacking attacks by mandating transaction approval by network stakeholders. Moreover, Blockchain uses tokens as assets for value transfer, promoting the use of a single universal currency

3. Serverless

Serverless is an emerging technology that is rapidly changing the banking and financial industry by simplifying app creation. No matter what the size of your fintech startup, you can get remarkable benefits by utilising serverless features.

Your company can create and maintain applications on a simple cloud-based server in a serverless architecture. You don’t have to waste valuable resources on managing the servers or solving issues because the cloud providers maintain the back end of the app. No wonder why this technology is becoming popular among mobile app development companies.

Serverless architecture reduces the burden off your shoulder and helps you create lightweight apps easily and quickly to enhance your customer experience. Moreover, this increases business productivity and helps create new revenue streams for increased profits.

We are an App Development Company in the UK  and a top provider of mobile app development services and have developed outstanding applications for fintech startups using Serverless technology.

4. Robotic Process Automation

Robotic Process Automation is a technology that uses software robots to emulate human activities like collecting data, moving files, filling forms, etc. RPA can be used to automate repeatable tasks that don’t need much human intelligence, making business processes effective.

Your company can use chatbots that interact with customers and answer their queries anytime during the day or night. The chatbots also take less time to reply to customers, enhancing user experience.

Other activities include data entry, managing and processing loans, consolidation and reporting, and analysing customers’ complaints. This simple technology can impart high value to any company, ensuring accuracy and high efficiency.

5. IoT

IoT or Internet of Things has given the fintech industry a tremendous boost in the past few years by providing extra security and increasing customer satisfaction. This technology can be described as a network of connected objects using sensors to collect and exchange data with other systems.

Markets and Markets Report says that the global IoT in Banking, Financial Services and Insurance market can grow at a CAGR of 52.1% from USD 249.4 million in 2018 to USD 2030 million by 2023.

According to a Statista report, the global IoT market is expected to grow from USD 389 billion in 2020 to over USD one trillion in 2030. At the same time, the number of IoT-connected devices would increase by 200%.

Cashless payments, introducing smart ATMs and banks, using security systems for fraud protection, supervising supply chain activity to reduce complicacy in debt collection, understanding the consumer market by analysing customer behavior, etc., are examples of how IoT helps businesses improve customer services.

The major benefit for you is that IoT is our area of speciality and we have made enough advancements in the building automation industry. For more information on Ficode IoT Services, click here.

Final Words

These five trending technologies are transforming the banking and financial world swiftly. A business using artificial intelligence, blockchain, serverless, Robotic Process Automation, and the Internet of Things can be highly productive, profitable, and popular. With ever-changing market demands and cut-throat competition, fintech startups must keep track of these trends to survive and flourish in the market.

If you want a simple and powerful mobile app for your fintech startup, you can partner with Ficode. We are a UK mobile app design and development company that provides bespoke app development services using innovative technology that exceeds your expectations.

We have the best app developers in the UK who will turn your raw ideas into profitable functional apps. Be it a smart android app or a stylish IOS app, our mobile app development services in the UK are one of the most affordable solutions.

Contact us now to know if you are looking for a Mobile App Development Company in the UK.