The past decade has been very significant for both the Finance and Technology sectors. And their amalgamation is set to challenge legacy traditional banking systems.
We now no longer have to go to the bank, stand in line, wait our turn, and sign paperwork to transfer money to friends or across borders. In 2020, we can simply open our banking app on our smartphones, select the account added, type in the amount, and press submit. A simple OTP verifies the transaction and generates the fund transfer request to be shared through WhatsApp.
Fintech has made normal users fall in love with the ease and convenience of banking and finance. The sector is set up for a major uplift in 2021 and we are going to help you know more in this regard.
In this article, we look at the top trends in the Fintech Sector, which experts expect to see emerge in 2021.
List of Top 5 Trends to Expect in the Fintech Sector in 2021
- The Rise in Crypto Adoption-
2021 is going to be a major year for cryptocurrencies, especially Bitcoins. With 2020 seeing record growth in almost every aspect, experts suggest that 2021 is going to be the defining year for Bitcoin in terms of consumer and merchant adoption.
Fintech companies like PayPal have already started offering payment solutions in Bitcoins in November 2020. This is surely going to be followed up by other players. Traditional banking institutions in countries like Germany, Japan, and others have also set up Bitcoin services.
- Increase in Financial Inclusion-
The rise of smartphones, cheap internet, and easy fintech means that it can be used to integrate people who have not yet been part of the formal banking structure. Using mobile phones as mediums to be payment instruments has been very popular in African countries.
In 2021, experts predict that the world’s roughly 1-7 billion people, who still do not have access to formal banking institutions will be brought within the fold thanks to the integration of technology and finance.
- Blockchain Technology Integration-
The next big leap for fintech according to the btc trading bot is going to be Blockchain adoption. Many payments processing companies are looking at Blockchain as a means of faster and safer processing of payments. Given its immutable nature, Blockchain can be highly advantageous.
Blockchain will also allow for a lot of data management and information flow requirements of businesses. Digital money as we know it now will change for the better with Blockchain integration. Facebook’s new Diem and China’s Digital Yuan are powered by Blockchain.
- Cashless Events and Arenas-
Can you use your smartphone to buy a bottle of coke at a music concert? Yes, you can. Can you again use the smartphone to get your hands on some merchandise at the event? Again, the answer is yes! The world is slowly moving to cashless events and arenas.
Here cash will not work. Rather, you will have to use your smartphone for everything. This is the next advancement in the area of fintech. The pandemic has slowed this down, but 2021 will see this rise on a major level.
- Artificial Intelligence and Machine Learning-
Fintech companies are experimenting with AI and ML on an advanced level. They believe that AI, together with Voice Assistant can help them identify fraudsters and protect payments. With the rise of voice assistants rising in homes, this might be a major development for the next year.
Some of the biggest names in the world of banking and finance are already adopting AI on a large scale. You have the BoA or the Bank of America, Morgan Stanley, and HSBC leading the technological adoption in 2021.
The Final Word
Many say that the world is moving at an accelerated pace of development in fintech because of the pandemic. With touching physical banknotes no longer remaining a safe option, millions of consumers have now moved normal spending to their smartphones and digital payment systems.