Fintech Trends to Look For 2021

 


2021 is the year of rebuilding and innovation. 2020 has made us realize the flaws in our system. The process that we deemed impenetrable proved to be as delicate as they come. One of the sectors that have been dramatically affected by the pandemic is the Financial Technology sector. 

 Financial Technology, more commonly known as Fintech is the use of Technology in the Financial Industry to make the process swifter, more user-friendly, much easily available to a broader consumer base. Features like Online Banking, Online Credit, UPI Money Transfer, Online Consumer KYC, Mobile Trading, Cryptocurrency are some of the features that have revolutionized the Fintech Sector. 

 2021 promises even more exciting trends as it settles here. Let’s look at some of the major Fintech trends to look for in 2021. But before that, let’s do a quick recap of the year Fintech year 2020.

Fintech in 2020

2020 will go down in history as the year of the pandemic, but there is so much more to the year that we do not see. 2020 has accelerated the already fast-paced digitization of the world. The safety protocols for the virus which includes social distancing, contactless transactions, zero to minimum human interference got the ball of Fintech rolling even faster.

 We saw some major transitions in the world of Fintech during 2020. As we were catapulted into totally unimaginable situations with no time to do even a little bit of damage control, technology came to our service, and we wholeheartedly said yes. 

Universal Financial Platforms

This was in practice even before 2020, but we saw the surge of many such platforms during the year of the pandemic that boasted of solving all our financial needs. Right from, creating a personal expenditure budget, to investing in market shares, the apps assisted us in everything.

Blockchain and Cryptocurrency

Blockchain has been around for quite a while now. However, it was only accessible to people who actually understood the lingo and were adept with the science behind it. But not anymore. Blockchain has been introduced to upgrade the transparency and security of the apps. 2020 saw hacking attempts at multiple fintech platforms owing to minimized manual surveillance. This has led to the accelerated application of Blockchain for security purposes.


There were many new innovative ideas that rocked the world of Fintech in 2020. However, the aforementioned easily win the prize. Universal Financial Platforms reduced the hassle of users from jumping in between apps whereas Blockchain added a layer of security to those apps.

Fintech Trends in 2021

The Year 2021 is the year of healing. But it is also the year of building it back and moving ahead. Fintech jumped quite early on the digital train and has been giving us exciting upgrades every year, 2021 is no different. Let us look at some of the major Fintech trends of 2021.

Tech Turns Finance

Apple Pay arrived on the scene back in 2014, was followed by Google Pay and the rest is history. While there will be other fresh innovations in the industry, there will also be a plethora of new payment apps in the market. In 2021, there will be an increased demand and supply for digital-first finance for the mobile-first generation. 

 We should be looking out for big announcements from traditional tech companies and some new promising startups in the fintech bubble. 

Digital-Only Banking

Digital Only Banking is probably the most ambitious innovation in the industry of Fintech. Without any physical existence, the bank is right there on your mobile. While it has been in the market for quite some time now, 2021 will be the year it becomes mainstream.

 The previous year of 2020 has made people aware, for all the right reasons about the impact of touch and the significance of sanitization. This has led to a resurgence in the rise of contactless services. This makes Digital-Only Banking the charm of the time.  

Artificial Intelligence

With the rise of technology in the Banking Sector, Businesses are now aggressively applying artificial intelligence and machine learning in their processes. This is done to understand their consumers better and curate personalized offers and services for them. 

 2021 will see a rise in the number of users turning towards Fintech and hence the choice to accelerate the Artificial Intelligence wheels makes all the more sense.


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