As we begin the journey towards a new normal, financial services are looking to the future. Markets are adapting to a post-COVID world and financial technology companies are evolving to meet these needs.

Financial technology, more commonly known as fintech, is a booming industry. Fintech companies are leveraging technology to create a boom in new financial products and services, opening the door to global banking communities and innovative online solutions. It’s currently worth over US$55 billion and is estimated to increase by 25-30% in value by 2025.

Understanding fintech trends means benefiting from future innovations today. From digital banking and online services to AI, FX and more, here’s how fintech can help your business grow on a global scale:

#1: Digital Banks and Online Services

Online banking proved to be an invaluable resource for families and businesses as countries around the world went into lockdown. Before the pandemic, users were already shifting towards mobile banking thanks to the rise of mobile apps that came with convenience and accessibility. These numbers increased considerably in the past year, with the fintech industry pivoting to meet the demand.

In 2016 alone, users adopting cashless payments increase by 56%. In 2020, over 86% of Americans checked their bank balance on their phone. The trend towards online banking technology is particularly evident among younger users. Recent surveys show that an astronomical 97% of millennial respondents are now using their smartphones to conduct payments.

Digital banking is the next step on the journey towards online banking adoption. The rise of internet banking is rendering brick-and-mortar spaces increasingly obsolete. Digital banks exist solely online and are coming to be seen by many as the future of the industry.

Digital banking offers more than just online availability. These institutions are committed to leveraging tech to bring all the services offered by traditional banks to the online marketplace. Many digital banks are using their lower overheads to provide members with higher-than-average performance on their savings accounts.

The benefits of digital banks are ease of access, smart features for individuals and businesses, plus better rates and lower fees. This affirms that there are significant opportunities for tech-savvy users which are made possible by the rise of neobanks and their adoption of today’s fintech.

#2: AI and Robotic Process Automation

New technology is driving growth within financial sectors, with AI and robotic automation offering some of the biggest opportunities for banks and members.

Robotic Process Automation (RPA) uses robotics to analyse large datasets and identify areas for improvement. The process boasts a 99.5% accuracy rate, eliminating human error whilst discovering unique optimisation opportunities. A recent analysis of banking services that utilised RPA in 2020 recorded an average return on investment (ROI) of 40-100%.

This technology is helping to develop major innovations such as AI chatbots, biometric authorisation and cybersecurity tools. It’s all about improving customer experience with unrivalled insight and analysis.

#3: Foreign Exchange and Global Markets

Traditional banking methods often pose problems to members who want to move between different markets and currencies. Fintech companies are responding to these challenges and, today, offer a range of innovative foreign exchange tools.

Daily FX transactions have risen by 40% in the last decade. Increasingly, the borderless nature of today’s global markets is demanding seamless international transfers and intuitive currency converters. For this reason, Forex trading apps are set to become one of the top fintech trends in 2021.

The best online FX services are generating a range of benefits for users, including better rates and lower fees. Getting direct access to global markets and foreign currencies supports a truly global user base and is helping to reduce the number of under and unbanked individuals around the world.

Exciting Opportunities For Global Banking

2021 has already set out to be a landmark year for fintech. Now, more than ever, businesses need financial flexibility. Digital banks and online services and intuitive apps are delivering this ability to evolve and expand.

Historically, the finance industry has shown an astute ability to capitalise on emerging technologies and adapt them to consumer needs. The question is not if, but rather when and how new technologies will make waves within the financial services sector.

Both convenience and user experience sit at the heart of fintech today. To remain competitive, banks must evolve to support the needs of a growing user base and empower businesses to enter the global marketplace.

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Have any questions about digital banking or other fintech solutions? Don’t hesitate to get in touch with a member of our team today.