Rapid digitisation and continuous advancements have led to many new trends and threats in different sectors of the world. After the distressing year 2020, everybody is hoping 2021 to be exhilarating. Among all other industries, the fintech sector has experienced remarkable growth over the years and trends for this year are surprising as well. Thanks to modern technology, trends for 2021 are all set to change the landscape of the industry.
What is fintech anyway? The term fintech is a combination of two words, finance and technology. The Fintech sector is aimed at providing better technological solutions for the finance sector to streamline all their number-related processes. We are surrounded by several innovations from fintech. However, we are not familiar with them as a fintech invention. For instance, the digital banking applications you use for convenient fund transfer or utility bill payment is a classic example of Fintech. Let’s take a look at some of the fintech trends that you must look for in 2021.
Business Insider Intelligence reports reveal that 48% of banking representatives have faith in technologies like blockchain and they believe that blockchain will have a profound impact on banking this year and beyond. Recently, digital currencies are becoming popular at a national level. Digital yen and digital yuan are the first of this series.
It is predicted that blockchain will revolutionize the financial systems. It not only provides a new philosophy but a decentralised idea of finance that focuses on reducing the centralised procedure. As of today, blockchain has inspired the development of various online peer-to-peer platforms that allow monetary interactions that take place in a more decentralised manner. Integrating blockchain will reduce expenses and streamline internal procedures.
According to a report from the Financial Brand, there will be a 36% drop between 2017 and 2022. Nobody wants to spend hours outside the bank for an account opening process. The modern world is all about digital means of communication. Customers demand fast and effortless processes and with the help of digital-only banking, fintech will ensure all financial institutions satisfy their customers. In digital-only banking, there will be no paper-work to handle which is the biggest concern for many finance companies.
Payroll issues have increased over the years and nobody focused on easing the process or a solution that can cater to the complexities of payroll. In 2021, payroll fintech will get popular among organisations. WhiteSight reports have revealed four categories of payroll fintech that can be helpful.
- Salary on-demand
- Salary advance
- Early direct deposit
- Crypto payroll
HR and the fintech sector will work as partners to bring convenience to the payroll process.
Biometric Security for FinTech
Biometric authentication has brought ease to different sectors across the world. It is not only an authentication measure but it has also become an attendance marking at offices. With different types of biometrics, the fintech sector will also employ biometric authentication checks to ensure better security of the sector.
The fintech sector is growing at a fast rate that one could not have expected. After the Covid-19 pandemic struck the world, going digital was the only option left for the world. This gave the fintech sector a great opportunity to evolve. Now, the year 2021 can expect higher levels of innovation in the sector. With digital means of operations being the optimal solution for many organisations, the fintech sector is all set to experience different trends. This year, we can expect a rapid boom in blockchain integration along with digital-only banking. While countries are working on CBDCs, the fintech sector is likely to emphasize on digital-only banking. Moreover, payroll fintech did not get much attention in the past. However, in 2021, analysts are predicting payroll fintech to be a viable solution for many companies. Lastly, biometric authentication will be used for enhancing security in the fintech sector.