Evolution of Fintech: The Most Prominent Future Trends in 2022
Financial technology has facilitated industries around the world in streamlining their business operations and fighting fraud. The technologically advanced software from the fintech industry helps corporations automate their repetitive tasks and provide a competitive advantage to businesses in the challenging market atmosphere. The integration of Application Programming interfaces (APIs), Artificial Intelligence (AI), and Machine Learning (ML) technologies in pre-existing software increases conversion rates and saves operational costs for industries. In accordance with the latest research, the global fintech industry’s financial worth was around $110.57 billion in 2020 and will achieve $698.48 billion by 2030. The figures show a CAGR of 20.3% for the expected period.
Top 6 Fintech Applications
As fintech is highly facilitative for various types of businesses, It is helpful to organize their digital applications in multiple kinds. The famous ones are the following:
Online Banking Applications
Technological innovation has introduced digital-only banking platforms competing against traditional financial institutions. Consequently, consumers can open bank accounts, keep track of their financial details, make instant payments, and request hassle-free loans.
According to the latest figures, the global market size of digital banking was around $11.43 billion in 2019. By 2027, the industry is expected to reach $31.81 billion, showing a CAGR of 13.6% between 2020–2027. The primary purposes of digital banking apps are to enhance customer satisfaction and reach profitability goals.
Trading & Investment Apps
Markets, such as Forex, and stock, use these kinds of apps to streamline trade, commerce, and finances worldwide. With the help of intelligent applications, customers can manage their investments and actively participate in trading. The implementation of smart solutions allows users to exercise control over their investments and also generate profits from trading.
The primary objective of such apps is to facilitate consumers in managing expenditures. They have the option to budget their costs ahead of time, which is extremely helpful in preventing overspending. Implementation of these apps provides a user-friendly interface, the ability to organize finances, and benefit from various ledgers.
Insurance industries use such types of apps mainly to strengthen the relationship between customers and firms. Such intelligent applications can comprise basic Customer Relationship Management (CRM) services for organizations to provide insurance policies for facilitating customers. Hence, using digital insurance applications reduces firms’ expenses and attracts new clients.
Companies such as Paypal provide digital wallets to their users. They want to empower their clients by saving their money. In accordance with the latest research, the mobile wallet industry had a financial worth of $1.04 trillion in 2019 and has the potential to achieve $7.6 trillion by 2027. The figures display a CAGR of 28.2% for the forecasted period.
There are several benefits of digital wallets, such as preventing fraud via powerful encryptions, providing instant financial transactions, and shopping online seamlessly. Thereupon, the availability of virtual wallets enhances user satisfaction and customer relationship with the industry.
Crypto Exchange Apps
A mobile crypto trading application makes it convenient for clients to deal in cryptocurrencies without any limitations. The implementation of smart digital apps facilitates customers by providing multi-platform compatibility, supporting instant trading, and ensuring unbeatable security measures. Moreover, users can enjoy 24/7 accessibility and portability. The main growth driver behind crypto trading platforms is the rapid digitization to facilitate market growth and easy adoption of digital apps by consumers.
As per the latest research, the global market revenue for crypto exchange platforms was around $329.4 Million in 2021 and will reach $674.9 million by 2028. Given figures show a Compound Annual Growth Rate (CAGR) of 12.7% for the forecast period. Moreover, Germany will lead in terms of the increased adoption rate of cryptocurrency. Some important factors for regional growth are faster transactions, better security, and low ownership costs with support from financial transaction platforms to consumers.
Impact of Fintech on Online Document Forgery Detection Solutions
The spread of technological innovation has influenced all industries around the globe, and the document verification market is not an exception. The following key factors have impacted the industry positively.
- Increasing confidentiality
- Improving customer satisfaction
- Securing a competitive advantage
- Enhancing the accuracy of verification results
- Streamlining the user onboarding process
One of the best approaches to validate users’ digital identities is online document forgery detection services. For completing the process, software guides customers to submit government-issued documentation such as driver’s licenses or passports for extracting clients’ credentials. In order to prevent ID fraud, online document forgery detection solutions play an essential role and enhance customer satisfaction. Such types of fraud prevention services are critical for modern-day businesses to establish trust with clients and provide personalized services. Thus, the implementation of record verification is very important in ensuring seamless compliance with AML/KYC guidelines.
During the pandemic, businesses faced severe challenges and several growth opportunities, including government relief initiatives. A number of traditional organizations have started implementing smart solutions in order to transform their business workflow and have a competitive advantage in the market. Other transformations, for instance, autonomous finance, neo-banks, crowdfunding, and Insurtech, are highly likely to speed up the transformation of the corporate sector. Consequently, fintech trends are playing a significant role in the sustainable development of businesses worldwide.