Technology has and will continue to change how we do things. The technological space comes with a lot of possibilities that can be harnessed for growth in virtually every aspect of human lives and living. Over the years, we have seen many sectors key to the possibilities that exist in the technological framework. By keying into it, these sectors have witnessed unprecedented growth. The most recent sector that has joined in leveraging technology is the financial sector.
2020 has been quite a year, not just for individuals but for most business sectors. The majority of businesses have been massively hit, while a few others leveraged the pandemic to grow exponentially. Following the pandemic, the increased use of technology has caused significant disruptions across every business industry, including the financial sector.
As a result of the lockdown and quarantine, banks had to temporarily close down, thereby increasing digital banking use as alternatives. This is where financial technology has come in. it was able to effectively fill the gap of traditional banking and continue to do so. Fintech has to do with financial technology, which covers the role technology plays in ensuring more effective financial transactions.
With the financial industry rapidly going digital and the continuous and massive investment into financial technology, the Fintech industry has become one of the booming technology sectors. The financial sector is quickly taking a new turn due to the impact of sophisticated technology.
The Fintech industry has shown massive potentials and provided several opportunities for investors, entrepreneurs, and various business sectors. However, based on this industry’s rapid growth, it is expected that Fintech will provide diverse and outstanding opportunities in the year 2021. Here, we have explored some of the beneficial FinTech opportunities that we take center stage for profitability.
Digital Lending/ Peering-To-Peering Services
Globally, tons of individuals, families, companies, and businesses have suffered a massive negative economic impact. With the covid-19 pandemic, things grew worse for many, and it’s not been easy getting back on their feet financially. Although there’s a release of stimulus funds to families and businesses in some countries, this has not entirely solved the financial problems many have faced. Thus, the increased need for loans to make up for losses suffered and return businesses to a stable position.
Fintech has been able to tackle this through the innovation of digital peer to peer lending companies. With these companies, individuals can identify and apply for loan opportunities with fewer requirements and reasonable interest rates.
Through the use of specialized Peering-to-peering (P2P) platforms, individuals, small businesses, and entrepreneurs are connected with potential loan providers. Utilizing advanced AI technology, individuals, small businesses, and companies can be duly accessed to determine their credit scores and credibility. This has made the lending process more comfortable, safer, and faster and has also allowed lenders to earn more interest on their savings.
The potentials of digital lending remain untapped and set to take a significant turn in 2021 and the years to come. This presents a perfect opportunity to loaning platforms, software developers, and financially incapacitated businesses.
If you have been contemplating setting up a platform that helps connect businesses in need of loans to prospective lenders, 2021 is a great year. You can leverage several sophisticated financial technologies to do that and make a lot of money from it.
If there is any emerging technology that will keep making the news in 2021, it will be Artificial Intelligence. FinTech is going to leverage Artificial Intelligence in ways that no one ever imagined. Considering that Artificial Intelligence provides tailor-made solutions to individuals’ needs, the banking sector will consider great innovation.
The need for artificial intelligence is on the rise, and several businesses are beginning to see its need as technology continues to evolve. The exponential growth and need for data, machine learning technologies, and crowd computing have increased the demand for AI in the banking and finance industries. By using artificial intelligence, banks can gather extensive data collection and utilize them via data analytics to make informed decisions. With AI, banks can improve overall banking services while cutting costs and saving money.
While artificial intelligence has provided some opportunities for the banking industry to grow, it has also created tech-savvy opportunities. While many think that Artificial Intelligence will replace individuals, you should note that behind every written program is someone who writes the program and sets it in motion.
Human experts such as developers, data scientists, researchers, and machine learning engineers must keep this technology up and running. As the need for and use of artificial intelligence continues to increase, it is expected that the demand for these experts would also rise, thereby creating more job opportunities for individuals who are skilled in that area.
Instant Payment Services
There has been outstanding growth in the post-demonetization digital wallet business over the past three years. The digital wallet business is rapidly booming and is showing no sign of slowing down anytime soon. Even with its numerous competitors – application developers and network operators, the digital wallet business is still thriving.
Through this, businesses, companies, and banks have erased the need for third parties or merchant accounts, allowing individuals and businesses to accept and make payments over the internet. This has and is still allowing companies to provide their customers with secure and fast financial services.
Customers can also make and receive payments on their wallets from and to anywhere in the world without going through the stress of the traditional banking systems.
Implementation of cloud banking into the banking financial industry will hasten the delivery of services and cause a drastic release in the amount of investment put into resources management.
With cloud banking, banks can easily and rapidly respond to the changing and growing needs of customers. The banking industry can use this to present their customers with new and innovative offers. Also, cloud banking allows banks to integrate new technologies and leverage customer needs to provide better services.
Digital Insurance (Insurance Technology)
The benefits of technology to business industries are unlimited. With the integration of technology into the smartphone, cars, smart locks, etc., it has become possible to access the expected lifetime, viability, and risk of using these products.
With insurance technology, the physical environment and other factors can save customers cost and insurance companies. For example, the insurance of a parked and long-used car can be reduced using insurance technology.
Blockchain and Better Security
The financial industry has continued to face several security threats and attacks. Hackers and crackers, every now and then, keeping breaking into firewalls and scamming several people. With Blockchain, the banking and financing sector can provide a trusted level of security to its consumers. This way, institutions can secure money exchange, sensitive information, and give room for absolute transparency.
Maximum security is guaranteed using Blockchain technology because of the encryption of its blocks and linkages. Financial technology provides secure platforms through which banks and financial institutions can anonymize customers to protect sensitive information. Although this presents an excellent opportunity for the banking industry, it also offers endless possibilities to Blockchain developers.
Regulation Technology (RegTech)
FinTech gives way for advanced technology to provide banks and financial institutions the help needed to observe regulatory procedures, requirements, and objectives. Using regulation technology, banks can effectively improve compliance with these regulations and enhance risk management.
One of the innovations of FinTech that will cause a spark in 2021 is in the area of digital investing. It will provide many users with several investment opportunities within and outside the country they live in. With FinTech, you can identify opportunities, analyze their growth strategy, and invest in them accordingly. The good thing about this is that you don’t have to be there in person to invest. All you need to do is create an account with the investment platform and make your investment from your home’s comfort through your device and an internet connection.
Smart Machines (VA Artificial Intelligence Technology)
Just like Amazon’s Alexa and the popular Google Home in Action, smart machines are about to take the financial industry to a whole new level. The impact these smart machines can have on the financial sector is limitless. These smart machines can act as digital employees in banks, working, and interacting directly with customers. This new and upcoming innovation will create opportunities for banks to engage popular technology to sustain customer relationships.
No doubt, FinTech has caused many positive disruptions in the financial sectors, and there is more to come. With the Covid-19 pandemic causing a massive reduction in physical gatherings, many individuals and businesses are going digital. This shows that there will be an enormous boom in 2021, not just for financial institutions that key into FinTech alone but also for tech-savvy individuals.
Whether it is Artificial Intelligence, smart machines, digital investing, cloud banking, digital insurance, or any other opportunities provided above, there is no better time to start positioning than now. If you make the most of the opportunities that FinTech has to offer in 2021, you need to be prepared for it.