The future of FinTech is looking bright
The increasing complexities of business and customers’ needs, along with the tangled regulatory rules are determining financial institutions to count on technology more than never. Financial technology, or FinTech, is continuously evolving. From offering solutions that may eventually create a global currency to establishing efficient payment relationships, FinTech is an industry that shows exciting prospects. This is why every company must have a strategy to harness the powerful advantages of the new financial technology revolution.
In the next year, use of newer technologies will be central to the bottom lines of banks and credit unions, so here are four ways financial technology could continue to evolve:
- Compliance assistance
Banks are facing increased regulation, and institutions and companies will have more work to do in order to ensure compliance. The threat of international fraud and identity theft also continues to put pressure on financial institutions. This is why companies continue to seek new solutions that help financial institutions and companies integrate with new compliance directives within their transaction processing software. Even for FinTech companies, compliance issues, particularly in the U.S., are pain points that will continue to serve as a challenge, so many firms are determined to find solutions that make these challenges easier to handle.
- Enhanced online shopping experience
Due to identity theft, consumers are now seeking better online shopping experiences that allow them to make quick, safe, purchases. This market will only grow as billions of people come online in the next five years. Companies are now looking to simplify and secure the online retail transaction environment for both the retailer and the consumer, delivering the experience customers want while they shop.
- Educated consumers for smarter financial decisions
Rather than offering multiple equity lines of credit and free credit cards, the future is all about helping consumers make smarter financial decisions, encouraging them to save money and presenting more financially sound as well as understandable investment strategies.
Companies like NerdWallet offers a lot of free advice and information that can help consumers make better choices about how they spend, borrow, and save their money. This is especially helpful for educating younger consumers, including students who may be considering loans and may face debt in the future.
- Diverse payment options
With more global and online transactions, consumers and small business owners need to tap into a wider range of ways to be paid and to pay others. It’s no longer about currency exchange, direct deposit, and PayPal, because new FinTech solutions are changing the payment process. For example, Epiphyte is helping the payment industry move beyond different currencies by leveraging Bitcoin. Many hope that more businesses will become comfortable using this form of payment.
Statista predicted that investors will spend nearly $20 billion in 2017 in North America alone. Banks and other financial organizations will continue to invest in new technology to meet global financial challenges, and FinTech companies will continue their focus on emerging inefficiencies and innovative solutions in the financial world.
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