The impact of technology on the financial world requires companies in this sector to understand the latest FinTech trends. After all, the most successful banking and finance businesses already benefit from embracing the digital transformation. For example, leveraging AI and machine learning provides a significant competitive advantage to these early adopters.
So let’s take a high-level overview of the current trends influencing this merging of finance and technology. Leverage these insights to keep your company on the leading edge of a constantly evolving business sector. In the end, this knowledge ensures your organization boasts satisfied customers as well as happy shareholders.
What Operational Areas Are Financial Companies Embracing With Technology?
A recent Deloitte study highlighted some of the FinTech use-cases currently being adopted throughout the financial industry. For example, nearly 30 percent of the surveyed companies plan on adding digital capabilities to their current product lines. 23 percent of those firms hope to modernize legacy applications and systems.
Improving data privacy and other information security considerations remains the goal of 18 percent of the surveyed businesses. Finally, 15 percent simply hope to build a modern digital workplace. That latter use-case especially makes sense with remote working commonplace in the wake of COVID-19.
Blockchain Technology Growing in Adoption
The current crash of the cryptocurrency market relates little to the promise of blockchain as a technology. Distributed ledger tech (another name for blockchain) offers the promise for secure digital banking in the future. PwC predicts 2025 to be the year where blockchain gets adopted at scale across the globe. FinTech companies that want to successfully compete need to add blockchain adoption to their to their list of priorities.
The AI Adoption in Finance Continues in an Unabated Fashion
Many FinTech companies already leverage AI and machine learning for a variety of use-cases. These include customer service chatbots, automated securities trading, and enhanced fraud detection. Expect this trend to continue, as Autonomous NEXT predicts AI to save banks 22 percent in operational costs by 2030. That accounts for $1 trillion in savings!
Expect Stronger FinTech Regulation
The digitization of financial data makes an attractive target for cybercriminals. When combined with the increased use of blockchain, expect stronger regulation for FinTech companies across the globe. Issues related to data privacy and ownership also come to the fore in this scenario. So be sure your company invests wisely in SecOps protection for its digital financial assets.
Are You Keeping Up to Date With The Latest FinTech Trends?
If your business needs to add IT talent, reach out to The CERES Group. As one of the top technical staffing agencies in Boston, we provide the exceptional candidates your organization needs. Schedule some time with us to discuss your current hiring plans.