By 2026, the fintech (financial technology) services market will grow to $31.5 billion. This is roughly four times what it was six years ago.
In this article, I focus exclusively on what our team believes to be the trendiest fintech innovation ideas and the most important concepts you should know as we enter a new era of processing transactions.
IoT (Internet of Things)
IoT wealth management platforms might significantly expand the possibilities of banking and financial apps. For example, a linked security camera positioned within a bank may identify any irregularities in client behavior or potential safety vulnerabilities and report the information to regulators instantly.
Blockchain
Today, blockchain is regarded as the most secure technology for database management in all areas. It works on a guideline that records every particular change, data transfer, and effort in tweaking data as separate data entries. The technology creates transparency for all partners’ actions, making removing and tampering with any data impossible.
RegTech
Among the other top fintech innovations is RegtTech — the use of technology to monitor compliance requirements. Regulations digital solutions use technologies that can manage massive datasets or unstructured data to enable information monitoring and reporting. These technologies also assist financial institutions in complying with changing rules in various countries worldwide.
Political regimes shift, and governments increasingly strive to support higher cybersecurity rules. Hence the emergence of RegTech may provide assistance to safeguard fintech security. People developed these solutions to manage large data transfers to comply with regulations.
Digital Identity Verification
Biometric technology is becoming increasingly crucial in fintech as identity verification becomes more prevalent. It provides practical solutions for verifying online transactions, streamlining account access, and even doing away with passwords.
It is also very critical to maintaining safe and smooth financial transactions. This helps stop fraud and ensures that only authorized people can access important financial information.
In the future, banking security will focus on verifying identity using fingerprint scanners, audio analysis, and facial recognition software. Financial institutions can reduce their reliance on passwords with these measures, which are frequently compromised. (Tomych, 2023).
Looking into the uprising fintech innovations, it is interesting to see what many of them seem to prioritize. Security is a running theme in all of the fintech innovations listed above from the article, whether it is protecting the customer from fraud or regulating compliance requirements regarding fintech security.
When connecting this back to customer service, protecting the customer’s information should be considered a main priority. In a way, I believe it can be considered a form of customer service. Customer service is not just solving an issue that a customer comes forward with, but continuously providing service that prevents any sorts of issues that they may encounter as effectively as possible. That one bad experience that customer has from a preventable problem, like leaked personal information, could be costly to the customer’s relationship with the business. It is important to think about how customer service not only solves problems, but protects customers from them as well.
References.
Tomych, I. (2023, November 30). Best fintech innovations: Top 10 innovations in fintech industry. DashDevs. https://dashdevs.com/blog/best-fintech-innovations.top-10-innovations-in-fintech-industry-dashdevs
