Fintech has taken off rapidly in the past few years, and affected business at all levels, from large corporations to individual customer transactions. From mobile banking to contactless payments, fintech has embraced new technologies, and that trend is only going to continue.
Mobile Banking Continues to Rise
Digital-only banking has grown from start-up to seriously big business. Firms such as Revolut have over a million users, and the trend towards mobile-based banking services will only increase. In an industry driven by ease-of-use and useful services, being able to do anything a traditional bank can do from the safety of your own hand is a powerful incentive.
Latest research by technology and marketing specialists CACI predicts that mobile banking transactions will more than double by 2022, with app based visits and transactions overtaking those from desktop and laptop computers.
One trend that is becoming more and more commonplace as technology develops is the use of chatbots for customer interaction. Where chatbots once represented a budget option compared to dedicated customer service staff, AI technology has pushed the boundaries, and offers at least nearly as good a service in many situations as human-staffed helpdesks. AI and chatbot technology is advancing rapidly, and now many fintech companies are incorporating them at all levels of interaction.
Digital Currency Overtaking Physical
From PayPal to Bitcoin, alternatives to traditional currency and banking formats have entered mainstream use and are now widely trusted ways of handling finance online. Digital currency has not yet overtaken cold hard cash globally, but the trends show that it is becoming more and more prevalent in day-to-day life, particularly in more tech-savvy regions. The infrastructure and systems are already mostly in place; it’s surely just a matter of time before physical currency goes the way of the telegram.
Security and Privacy Make Headlines
With breaches in security and privacy making headlines from email servers to banking details, as well as new wide ranging data protection regulations like GDPR, the security of financial (and other) information has never been such a hot topic. While most customers won’t be entirely savvy with the latest in cryptographic methods for handling their information, it has certainly become more important for customers to know their information is safe. In an industry where trust is key and one bad story can sink an enterprise, it’s not enough for fintech companies to just promise to keep their clients’ personal data safe, they have to continuously prove it.
Millenials Are Growing Up
The millennial generation is defined by, amongst other things, a very clued-up approach to technology, and rapid adoption of technologies that make their life easier.
The Way We Bank Now report by UK Finance confirmed a year-on-year rise in logins to banking apps, with almost 70% of 25-34 year olds banking with smartphones.
As they increase their financial base, fintech companies are developing ways and strategies of leveraging their technophile tendencies – and their tendency to shout about good (and bad) service on social media. Many companies are finding that a holistic approach to customer interaction pays dividends; making their service part of a lifestyle can make it seem essential, and as millennials grow up and develop into a serious financial sector, that relationship will blossom.