With over six thousand Fintech startups in the Americas, innovations in finance are consistently emerging. Ten billion dollars in financial technology investments worldwide is prompting the exponential growth in the industry.
In observation of finance trends, it’s clear technology advancements center around benefiting consumers and enabling growth for companies.
So, what exactly are these advances in Fintech all about? What new innovations are truly shaping the industry?
Keep reading to find out the top seven financial technology trends that are influencing the future of Fintech.
1. Artificial Intelligence in Credit Repair
Artificial intelligence allows finance companies to analyze data for consumer benefit. Through tracking multi-faceted data, alternative lenders and personal finance companies can tailor recommendations to consumers to lead them on a path to credit repair.
In step with these advancements is one company that is making strides for those with suboptimal creditworthiness. Pinnacle Credit Management at the forefront of credit repair with their artificial intelligence powered software. Through their innovative approach, they are able to remove credit inaccuracies three to four times faster than their competitors.
With an 80% deletion rate, it’s clear that they are leading the way for AI integration.
2. Voice-Activated Banking
With more than fifty percent of one survey’s participants using voice-activated technology, it’s safe to say that voice-activated banking is a popular consumer-side innovation.
Ease of access and simplicity are some of the highlights of voice-activated banking. These honorable traits can support consumer’s financial health while providing them with accurate, accessible information about their banking.
But, the benefits of voice-activated technology aren’t limited to consumers — lenders can benefit, too. By creating a streamlined, voice-activated assistance, the lending process becomes simpler for consumers, allowing them to better interact with consumers.
3. Text Conversations with Your Bank?
In American’s under fifty, texting is the number one most frequently used form of communication.
Fintech is harnessing this potential by using artificial intelligence to personalize banking. By using virtual bot technology, financial institutions can provide instant information through text messaging. This also provides a new avenue for marketing efforts.
Digital and online banking can also make use of safer two-factor authentication through text message which guarantees better security for consumers.
Additionally, lenders are able to secure more frequent on-time payments through due date text message notifications.
4. Blockchain for Financial Technology
Time is money and blockchain is shaping the financial industry through efficiency.
Blockchain technology is taking transactions that normally require two to three days to complete and allowing financial institutions to complete them in a matter of seconds. This rapid transaction potential is a result of blockchain’s decentralized verification technology that bypasses third-party intervention.
Blockchain technology might prove to be less costly, too.
Requirement of third party involvement in financial transactions creates fees that blockchain can prevent. This means less cost for both consumers and financial institutions alike.
However, safety is an issue that has full implementation of blockchain technology on a leash. The traditional firewall that currently protects financial data is the security blanket for bank data protection.
5. Efficiency in Fintech: the Cloud
One of the biggest Fintech advancements has been elaborate and advanced data acquisition. With the flood of data, Fintech companies are turning to one of the biggest financial industry trends: utilizing the cloud.
Using cloud storage allows Fintech companies to store massive amounts of data with efficient access. It also proves to be more cost-effective as compared to storing data on local servers.
Automated capabilities found exclusively through cloud storage is enhancing productivity and allowing engineers to focus on more pressing tasks.
6. Breakout Technologies in Developing Nations
One of the biggest finance trends that have emerged is financial inclusion. This is a term that encompasses the development and implementation of financial technologies in developing countries.
This financial inclusion trend has benefits for both individuals and economies.
Through biometrics and voice authentication, Fintech companies have successfully reduced the incidence of fraud.
By practicing financial inclusion and implementing technologies, financial technology companies can bolster developing nations.
Transforming the Financial Health of Populations
As more and more companies strive to provide developing countries with internet and mobile access, it creates the opportunity for mobile banking and money management. If implemented, financial technology advancements can transform individual financial health through easier asset management.
Mobile access also allows individuals access to financial education resources to help them better understand successful money management.
More companies than ever are offering alternative lending solutions via online financial options.
Applying these easily accessible financing technologies to developing nations allows prospective business owners to spark their local economy.
7. Unconventional Data Analysis
Accurate credit evaluation and approval is arguably one of the most important analytics of the Fintech industry. The internet, social media, and digital bank communications have generated enormous data sets that can now more precisely determine creditworthiness.
From social media accounts and profiles to mobile phone records, alternative data can provide more accurate insight to financial institutions and consumers for credit approval.
Financial Technology Advancements Are Shaping the Industry and the World
Innovations in financial technology are giving way to more efficient and convenient transactions in the financial world.
Artificial intelligence and blockchain, with their rapid actions, are setting the pace for financial activity.
Unconventional data and increased accessibility are providing financial institutions and consumers with personalized and more accurate insights on financial health.
Novel banking communications through voice-activated technology and text messaging are paving the way for convenience and enhanced security.
These advancements are not limited to developed countries. Financial inclusion, a new finance trend, is providing new technologies to developing countries. As a result, we may see improvements in life quality and economies within these regions.
There’s no doubt that financial technology is influencing the world; one advancement at a time.
Interested in learning more about the implementation of these innovative technologies? Learn more about artificial intelligence and how it is shaping consumer’s credit repair experiences at Pinnacle Credit Management.