By 2025, the volume of the global FinTech market will exceed $300 billion. And this is fully justified – FinTech solutions are reliable, modern, and highly demanded, especially among investors and millennials.
Thanks to this popularity, the financial technology industry is developing by leaps and bounds. Already today, some trends determine the vector of future development. In this article, we’ll talk about what products based on them may appear soon.
6 Trends in FinTech
- Contactless payments
According to research, by 2023, the turnover of cash around the world will decline dramatically. The pandemic also contributed to this, increasing distancing and the desire to get rid of unnecessary touches.
In this regard, soon, there will be a boom in the development of services for contactless payment – people will be able to pay for gasoline without leaving their car, take a loan to buy an apartment, insure it, make a design project using one application without leaving home.
- Voice interfaces and personal advisors
Today financial services software development is accompanied by the introduction of voice assistants. All of them help companies to automate the work of call centers and provide clients with answers to the most frequent questions, regardless of the time of day. Now the majority of them are awkward and funny, they often respond inappropriately. But behind them is the future.
Soon, we may even be able to transfer money or invest by voice.
- Subscription services
Following the fact that people began to subscribe more often during the coronavirus, the subscription model began to be implemented in car sharing, food delivery services, and banks.
In the future, a subscription over a long period will allow a business to offer a more interesting and demanded offer, providing high-quality services.
- Sharing economics
Various types of temporary joint ownership are gaining in popularity. PwC estimates that the global sharing economy will grow to $335 billion by 2025.
The desire of clients to save money and more rationally allocate resources led experts to ideas for new products that, in their opinion, can be implemented shortly – these are family sharing loans and sharing loans for public spaces. For banks, such solutions would help expand their audience and increase brand loyalty.
- Investing in people
People are increasingly giving preference to investment. Moreover, in the future, it will become possible to invest not in individual business models, but people with a perspective. For example, aspiring bloggers, entrepreneurs, athletes, or even certain groups of people.
The opportunity to invest in such a person in the early stages can be a great opportunity not only to diversify your portfolio but in many cases keep the star that can change the world for the better from fading away.
- Product micro-targeting
The trend for personalization is becoming more noticeable every year and generates ideas for new products and services related to the integration of financial services into micro-communities. For example, there may be products that provide comprehensive services, say, to students – packages of loans at a reduced rate for summer vacations, additional courses, or fitness clubs. Or, for example, loans for automobilists for car servicing, buying tires, or a garage.
Wrapping up
According to researchers, the industry of finance is forced to constantly evolve due to new competitors, demographic shifts, growing customer expectations, and changing regulatory requirements. FinTech offers solutions that enable banks and other financial institutions to become more efficient than they were yesterday. That is why it is worth following the current and future trends and trying to implement them as early as possible.
