While segments of the FinTech industry have not always moved at the fastest pace, the industry has experienced tremendous change across virtually all areas over the last few years. With online banking, the FinTech industry has shown that it can be a leader in the tech industry, and consumers have responded very favourably. Let’s take a look at five trends that are reshaping the industry both internally and externally.
1. Open banking will continue driving innovation.
Banks like Monzo, Starling, and Revolut are no longer on the fringe of the industry. The public has shown that they’re willing to give these so-called “challenger banks” a go since they promise to help their customers overcome many of the hurdles associated with traditional banking. For example, if you wish to know how to open a banking account with bad credit with a traditional bank, the answer will drive you through a ton of hoops without any indication of whether you will be successful or not in the end.
With these new types of banks, however, all aspects of banking become a breeze, including opening such accounts. There are no queues, no mail, and often very little paperwork when compared to traditional banks. The ripple effects of open banking are very substantial and we are just now seeing glimpses of what the industry may offer in the future.
2. UX will become the number one priority
Just about all reputable banks have now invested quite heavily into making sure their online and mobile banking experiences are as fluid as they can be. In fact, they’re often quite fast at adapting the latest technological innovations such as fingerprint IDs in order to enhance the user experience.
The same concept applies to almost every aspect of banking. From opening a bank account to checking recent transactions, banks understand that users expect a seamless experience across every step.
3. FinTech app usage will continue rising
There are hundreds of different FinTech apps in the market that cater to virtually any audience. For clients with bigger savings and more financial freedom, mobile apps now offer people with the opportunity to invest their money more easily than ever before.
For everyone else, FinTech apps provide the chance to have financial freedom, or better financial management, through new means. For example, there are now apps that can automatically help you save based on your spending habits, or can help you set clear, well-defined budgets without hassle.
4. Automation will play an important role behind the scenes and on the forefront
Automating tasks is a major area of focus for practically any industry that even dabbles in technology. Turning monotonous, repetitive tasks into an afterthought can have a tremendous effect on every aspect of most businesses, from revenue to employee satisfaction.
In FinTech, automation can help drive new innovations in areas like personalization by allowing banks and other financial services to analyze and manage data faster and more efficiently than ever before.
5. Data will be the focal point
The fact that data science is one of the fastest-growing industries, both as an entity of its own and as a part of FinTech, should not come as a surprise. Data has always been one of the most important driving forces behind financial services, and this notion is only being reinforced as banking moves forward.
Whether it’s to better target services to specific audiences or to create more efficient initiatives within and outside of financial organizations, having access to structured, well-defined data has never been more crucial.