Over a decade ago, nobody would have ever predicted that technology and finance would go hand-in-hand. But as of today, the finance sector is packed with fintech products that make financial institutions perform better with the reduction of the margin of error.
Think of the advanced software, applications, financial calculators or numerous fintech products ruling the online market. The presence of technology in finance is inevitable.
With that said, let’s take a closer look at the tech role and the trends that would give a different outlook to finance in 2021.
Role of Tech in Finance
Technology is continually improving to make our lives simpler and avail successive results with high efficiency, especially in the finance arena. Tech plays a significant role in optimizing data and implementing AI & ML to get better results.
See the Companies adapting to the new normal! They are relying on technology to get a better outcome in productivity and innovation.
Disruptive Trends in Finance for 2021
Here are some of the ways the robust tech trends can change the finance outlook:
With so many contactless ways of making transactions, it’s safe to say that banks could go entirely digital. No need to visit a bank for trivial tasks! The requirement of tedious paperwork, waiting in long queues for getting menial jobs done, can be scrapped entirely.
Moreover, with digital banks, users can get sufficient data to go through the bank’s application process and make transactions with ease.
You can visualize AI in the chatbot features of the financial institution website. The year 2021 might bring a huge wave into expanding its implementation. It is where artificial intelligence might play a crucial role in the safety and security of the bank.
Even assisting in fighting cybercrime and handling fraudulent activities can be done with AI.
Blockchain is going to play an essential role in shaping a financial institution. The trend of blockchain integrated into any finance sector is going to be disruptive in 2021. The decentralized network can provide information on the transactions made, peer-to-peer interactions within the organizations, and much more.
It can massively improve the banking system, where reducing expenses and internal procedures are the top priority.
Reg-tech stands for regulatory technology aiming to streamline the regulatory operations carried out in the financial universe. Under this segment, things such as monitoring, compliance, and reporting come to play.
The reg-tech overarching objective is to offer a transparent way of enhancing the regulatory practices followed in financial institutions.
Payment gateways are going to play a significant role in changing how money gets transacted. With several companies offering a unique way to carry out monetary tasks, things such as mobile payments, digital wallets, tap and pay, contactless payments are going to skyrocket in 2021.
The significant boost to this trend would be the GenZ group who are technology-oriented people. With everything going contactless, payment innovations will get better simultaneously.
The financial sector has seen the magnitude of growth since the introduction of fintech in its world. It helps extensively in better transparency, faster processing, and better assistance. Even the security and safety of data gets maintained. It can significantly contribute to the fintech revolution in 2021.
What do you think? Aren’t we already embracing a healthy combination of finance and tech era? Do share your views.