Inspironlabs | 14 July, 2022
Top technology use for Fintech Industry in 2022- Come let's know something about it
Written by Shivam Pandey
It is expected that fintech will disrupt many aspects of the financial sector shortly. Over the past few years, financial technology companies have experienced phenomenal growth.
Around 500,000 people are employed worldwide by fintech companies, which number over 26,000 worldwide. In addition, non-traditional providers offer at least one financial service to 30 % of all banking customers.
Everyone in the banking world is talking about fintech. From payments to consultancy services, it has revolutionized several industries in the financial sector. A list of some technologies transforming the fintech industry has been compiled to help you stay up to date on all the trendy technology.
Technology such as distributed ledgers is increasingly becoming part of the digital infrastructure. Besides Bitcoin and other cryptocurrencies, it can be used for a variety of different purposes as well.
We have only begun to scratch the part of blockchain technology's potential. During the next few years, this field may witness some groundbreaking developments.
Blockchain can change the finance industry in many ways, including decentralized finance (Defi) and non-fungible tokens (NFTs). However, it is impossible to predict what new developments will appear in these areas over the next few years, as there are countless other ways in which people can use this technology.
Numerous challenges need to be overcome before blockchain becomes more widely adopted before it reaches its full potential.
2) Sensors and Internet of Things (IoT)
As a result of the Internet of Things, financial services are evolving, and we are looking at data differently. For example, the fintech revolution is frequently linked to sensors. Companies can now collect data in ways they never have before, thanks to these sensors, which are becoming more and more commonplace.
Research states, “Using inexpensive sensors to monitor the location, temperature and stress of almost any moving part opens up board possibilities to monitor remote operations, whether a house holds the device or systemic capital equipment.
For example, sensors being used in the financial service industry include ATMs, which can detect how many people are lined up to use them. You can also use sensors in micropayment transactions, as in contactless payments, to allow users to make the least payments without having to enter credit card information.
3) Mobile Payments and Digital Banking Services
Several banks are using the most popular fintech services disrupting traditional banking. They refer to a new type of bank operating online only and built with mobile-first design principles.
People can open an account via the smartphone app instead of going to a real branch office or filling out endless paperwork.
These apps are more user-friendly, and most offer a wide range of banking features, including savings accounts, customer car loans, mortgages, and easy payments and transfers.
For example, most bank apps are overgrowing in Asia and Europe and are often ranked higher than banks. Yet, according to a Forbes study, banks worldwide are investing US $ 1 trillion in digital banking to stay competitive.
4) Augmented Reality / Virtual Reality (AR/VR)
VR in the financial industry is slowly emerging, allowing people to invest in stocks and trade currencies virtually. It provides an immersive experience for monitoring real-time market movements and making quick investment decisions. This is an excellent example of how consumers can use FinTech and the latest technology in their investments.
Most experts agree that it will take some time for VR to become another viable use case, but companies are already experimenting with technology to explore that possibility. According to researchers, virtual and augmented reality will be more than $ 80 billion in the industry by 2025.
In 2021, Meta (formerly Facebook) invested $ 10 billion in VR. The tech giant is also behind VR headset maker Oculus, planning to hire 10,000 people to build the "Metaverse." Again, fintech is likely to play a fundamental role in such large-scale simulations.
5) Robotic Process Automation (RPA)
RPA uses digital robots (bots) to automate routine, repetitive activities previously performed by humans. It differs from artificial intelligence because it does not require human intelligence.
Many companies have already implemented RPA technology to free up resources and improve accuracy. It is used for simple tasks such as data entry and information processing.
RPA reduces operating costs for fintech companies by automating the organization's back-office functions without sacrificing quality or productivity, allowing employees to focus on more innovative and value-added activities. It's a great way to do it.
Benefits of Blockchain
6) Artificial Intelligence (AI) and Machine Learning (ML)
There is extensive research and use cases regarding artificial intelligence in financial services. Applications include risk assessment, forecasting, data management, automation, and hundreds of other use cases that have not yet been discovered. One of the notable developments is the robot advisor. These are one of the most popular trends in FinTech today.
These online platforms allow you to manage your investment independently and propose a personalized portfolio that best suits your interests. They use cognitive computing technology and big data trends to determine the best investment strategy.
Machine learning is a part of AI which we can use to learn and evolve from data to solve complex problems. For example, machine learning in finance includes fraud detection, compliance analysis, and algorithmic trading.
FinTech is a rapidly evolving industry, and new trends are emerging each year. Uncovering these fintech technologies provides new insights and stays ahead of the competition by making informed business decisions for the company's future growth.