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5 Fintech Trends that Are Transforming Business

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5 Fintech Trends that Are Transforming Business

The nuanced perks that come with the rise of financial technology are only beginning to emerge as more businesses are affected by its unstoppable growth. Fintech has been an integral part of doing business for years now, but the extent to which it’s utilized is still in its infancy, and we know that with more innovation comes even greater usefulness for a wide range of industries. That simply means that no matter what your business is based on, you will at one time or another find a purpose for implementing fintech solutions into your own strategy.

In fact, the following predominant trends persistently bring change and progress to a range of fields, from medicine, law, all the way to education. Let’s delve deeper into this complex matter and at least scratch the surface of the most prevalent fintech trends that have the power to refine your business for years to come!

Blockchain for greater security

Cybersecurity has been an issue since the dawn of the internet. As more complex tech solutions arise, so does the need for ways in which we can protect them from various threats online. One of the most recent, innovative solutions that shows great potential in the financial industry, in particular, is the famous Blockchain technology, made for the purposes of cryptocurrencies, but applicable to other realms, as well.

Some of the largest bank chains in America as well as Europe are considering introducing the technology as the vital segment of its payment systems, precisely for its ability to protect any form of data from corruption or unauthorized access. From cryptocurrency-focused businesses, all the way to existing banks, Blockchain stands to change the way in which money “travels”.

Mobile goes big

So much has been said about mobile in terms of SEO and how online purchases have changed precisely due to our habit to switch to this portable, compact shopping method. That, however, is far from the only way in which our mobile obsession is changing business. It is also affecting fintech, or how we conduct financial transactions increasingly frequently on our mobile devices.

It is expected for mobile to take over as much as 88% of all banking transactions by the time we reach 2022, and we can only expect this number to keep growing over time. Since we’re continuously striving for more convenient ways in which we can conduct these transactions, we can safely say that there will be even more app-related solutions to make this aspect of fintech even more reliable.

AI for seamless transactions

A significant portion of financial institutions is already using artificial intelligence once way or another to speed up, simplify, and increase the security of their transactions and customer relationships. AI is no longer a new player, but one that keeps developing at a staggering speed and finding new ways to upgrade fintech in all its glory.

AI plays a crucial role in automation and eliminating or at least reducing human error in complex tasks, hence its application in realms such as legal transcription services to enable faster, more reliable agreements. Thanks to AI, the complex interaction among these highly sensitive industries is becoming more seamless and prevents numerous mishaps that we, as humans, tend to cause.

Automatic invoicing

Another way in which fintech benefits from automation is the grueling, often very complex process of invoicing. For some businesses, it takes an entire department to handle invoicing with large, long-term accounts, and the smallest of slip-ups can cost thousands of dollars. It can affect your relationships, but also your cash flow and day-to-day operations.

Now, the latest fintech software solutions allow businesses to automate the payment cycle in its entirety. Recurring payments among your clients are no longer an issue while filling out piles of paperwork is officially redundant with smart invoice solutions that do it for you. Everything from email reminders to digital storage will enable you to cut costs as well save time.

Digital payments on the rise

Although you might initially think of cryptocurrencies as your go-to “digital” payment method, the idea behind digital payments is removing yourself from the traditional banking systems and into the digital realm. From platforms such as PayPal that have existed for a while now, all the way to fully-digitalized banks such as Revolut that utilize both cryptocurrencies and regular currencies in their system.

The mobile trend alone is a great indicator of a global need to move to more cashless interactions from the existing visits to a physical bank or picking up money from an ATM. Switching to digital transactions will be another revolutionary step forward thanks to fintech, and it will not only enable us a more paperless environment but a greater level of control over our accounts, as well as faster, streamlined transactions, both personal and professional.

 

Even though the world has a long way to go before fully adapting to the potential of fintech, we have already noticed certain advancements that we owe to this incredible blend. These trends are certainly not the only one bringing innovation to businesses worldwide, but we can expect them to lead us into a new era of financial diversity.

Barjunaid Cadir is a Content Writer in The Weekly Trends, Web Developer, SEO Content Manager, LinkedIn Specialist, Social Media Manager, and a University Researcher at Anadolu University in Eskisehir, Turkey.

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