Fintech trends are set to make the financial sector more efficient and convenient, as well as reduce inaccuracies. Let’s find out what are the major trends going to rule the fintech sector in the next year. Here is Insight's list of the top 5 prominent fintech predictions to watch out in 2019.
- Digital Transactions
- Power of AI and Machine Learning
- Conversational Banking
- Blockchain Prominence
- Evolution of Data
Digital Transactions: Gone are the days when one needed to carry a wallet full of money to make purchases. Digital payment solutions take the forefront in finance in the coming year. While paper money remains reasonably popular now, developments in cryptocurrency over the next year or so are expected to inspire even more businesses and customers to make the transition from traditional banking to digital transfers. By 2020, an exponential growth is expected in the field of digital and cashless payments by SMBs.
The Power of AI & Machine Learning: When financial institutions are looking for improved customer service, risk management, fraud prevention, investment prediction or cyber security, the scopes of machine learning, and artificial intelligence are limitless. We live in the era of face recognition, robotic encounters, sci-fi movies, machine learning and it’s time to replace human interaction with human-like interactions. Artificial Intelligence removes all human errors and doubles the efficiency, speed and accuracy. In the modern era of the digital economy, technological advancements are no longer a luxury for the organizations, but a necessity to outsmart their competitors and business growth.
Conversational Banking: One of the most highly anticipated FinTech trends for the coming year is the rise of voice banking, or conversational banking. AI, natural language processing and chatbots have bubbled to the top with fast-paced advancements. This trend is set to become prolific across digital finance services during 2019.
Blockchain will venture beyond Bitcoin: The much-hyped technology upon which Bitcoin and other cryptocurrencies are based – The Blockchain, is all set out to venture beyond Bitcoin and will serve various other markets and domains. Keeping in mind the potential of Blockchain, several banks and financial firms have planned for considerable investments in the domain. Financial institutions are interested in the blockchain because of the security and transparency the technology provides. Moreover, smart contracts can automate payments and other financial operations.
Evolution of data: major changes are happening with the financial industry when it comes to data collection. With the use of data analytics and the IoT, banks will be able to curate data to replace the credit score, giving consumers more financial options. Secondary, investors will start to appreciate other lending data that will give way to better credit models.
Voice banking and digital transactions coupled with the embrace of AI, Blockchain and Machine Learning for secure and personalised banking experiences are giving new impetus to the adoption of financial technology within the financial services industry in coming years.
Credits:
Insight Consultants