With technological advancements, different industries have started to take advantage of various new opportunities and possibilities. One such sector benefiting greatly from these technological innovations is the financial sector or most commonly known as the fintech industry.
The fintech industry has been rapidly growing in recent years and is revolutionizing how businesses and consumers interact with financial services.
As reported by GlobeNewswire, the global fintech market is expected to reach USD 332.5 billion by 2028.
With the growing popularity of fintech, let us take a look at how technology has transformed the fintech sector.
Innovative tech in the Fintech Industry that’s creating Serious Impact
- Blockchain Technology
Blockchain technology has transformed the fintech industry in a number of ways. The most notable is to facilitate faster and secure transactions. Blockchain has also introduced a new level of transparency to the financial industry by providing a decentralized ledger that helped increase trust and confidence in the fintech industry as a whole.
Furthermore, blockchain in fintech has enabled the development of new applications, such as smart contracts and distributed ledger technology. These applications have the potential to further disrupt the traditional financial system and create even more opportunities for innovation in the fintech sector.
- Artificial Intelligence (AI)
Another game-changing technology in the fintech industry is artificial intelligence (AI). AI can be used for various tasks such as fraud detection, customer service, and financial planning.
AI chatbots, in particular, are becoming increasingly popular as they can provide 24/7 customer support and help resolve customer queries quickly. AI-powered applications have made it possible for fintech companies to offer a wide range of innovative services from automated investment advice to fraud detection.
Moreover, AI has also enabled fintech companies better understand and serve their customers through the use of data analytics.
As reported by Mordor Intelligence, the global AI in the fintech market is expected to reach USD 26.67 billion by 2026.
- Cloud Computing
Cloud technology has also transformed the fintech industry by making it more accessible and affordable. It also offers numerous benefits like faster processing speed, flexibility, and increased security.
Cloud computing builds a multi-channel relationship with the customer and helps reduce the cost of customer acquisition. In addition, cloud-based applications can be updated frequently without disrupting the user. As the fintech industry progresses, more and more businesses will likely move to the cloud.
- Big Data
Big Data is another technology that has been innovating the fintech industry. Fintech companies leverage big data to provide a better customer experience by using data analytics tools to understand their customers’ behavior and preferences. Thus, serving them with personalized offers based on their needs and requirements. This helps them deliver better services to the customers and improve their loyalty to the company. The Big data course is recommended for gaining expertise in this field.
Moreover, Big data helps protect against fraud by identifying patterns of fraudulent activities by using advanced analytics software like machine learning algorithms.
For example, Big data can be used to track a customer’s spending patterns and flag any unusual activity that might indicate fraud.
Big data engineers can expect a median annual salary of $122,850 and steady growth of the field over the next decade.
- The Internet of Things (IoT)
The Internet of Things (IoT) is another technology used in the fintech industry to create new products and services. IoT refers to the network of physical devices, software, and other technologies that are connected to the internet. These devices are equipped with sensors that collect data and send it to a central database. This data can be analyzed to provide insights that can be used to improve the efficiency of various processes.
For example, banks can use IoT devices to track their customers’ spending patterns and offer customized financial products and services.
These are some of the ways in which technology has transformed the fintech industry. With the help of all the above technologies, fintech companies are able to provide better services to their customers and stay ahead of the competition.
There’s no doubt to it that the world is changing, and the need to create an efficient and secure fintech app is growing faster. Various software development companies are providing fintech app development services to their clients so, if you have a fintech app idea, you can turn it into reality.