Today, the advances in FinTech are breaking down barriers and creating room for new opportunities for enterprises and startups alike. With the advent of intelligent systems, companies can now better assess their customers’ interests and provide them with the type of services they are most interested in. This blog covers some of the key trends which are beneficial in empowering FinTech’s potential.

Automated Solutions 

Financial institutions, despite their conventional strategies, are vulnerable to the technological shift in financial services. Market traders are aware of limitations in the human workforce and are looking to bank on automated systems. By investing in these solutions, companies can greatly benefit by managing their funds properly and better decision-making. Gone are the days when human experts handled customer queries and requests over long hours of calls. Now, Robo-advisers can provide users with financial advice for managing their finances and planning ahead for future investments. 

Brick-and-mortar banks that carried out their operations using conventional methods, are now adopting FinTech to survive the highly competitive market. Embracing these new technologies will help the financial sector reach new heights by saving up on additional business costs.

AI and Big Data 

Artificial Intelligence has been a game-changer for enterprises because of its applications in a wide range of financial products and services. Today, there are millions of users on the internet, and managing their data is a challenging task. With the development in Data Science and similar fields like Big Data and Data Mining, data acquisition and processing of customer information has been streamlined with effective management tools. With Big Data, the large datasets can now be broken down into smaller components, analyzed with respect to certain parameters, and predictions could be made for future happenings. 

Experts believe that data will grow 700% each second by 2020. In a study by IDC,  $260 billion is the expected amount of revenue generated by Big Data Technologies in 2022, while the total market value was $116 billion in 2019. The banking industry has to deal with monetary operations involving data in each step. 

Fintech allows businesses to follow the “pay-as-you-go”, also known as the “pay-per-use” model, which allows their customers to pay upon the usage of a product or availing a particular kind of service, rather than a massive initial investment. This allows companies to offer better plans with smart customer acquisition creating stability of operations.

How Data Mining Helps

Data mining corresponds to the discovery of knowledge in hidden patterns in data using statistical and intelligent techniques to perform predictive analysis. When it comes to financial markets, it helps in predicting future trends, which encourages smaller businesses and startups to compete with industry giants. 

Oracle in a survey in 2019, shows some statistics on how these intelligent financial technologies help deliver better services:

• Data Mining helps deliver financial services with a 40% reduction in expenses

• Customer experience across different channels is improved up to 47% with the inclusion of Fintech

• The user’s behavioral data is processed to find the right time to make a personalized offer, increasing sales by 60%

Blockchain Solutions

With the power of secure and quick virtual transactions, blockchain has brought a major revolution to the payment systems industry. The total market size of the blockchain industry was $1.5 billion in 2018, which is forecasted to grow up to 15.9 billion by the end of 2023. Surprisingly, the finance industry contributes more than 60% of the total number of blockchain investments, according to Statista. When combined with Fintech, blockchain possesses the power of setting trends that are favorable for businesses as well as consumers. 

Blockchain transactions are encrypted which means user information shared over the internet is free from intervention. This mitigates the risk of potential cyber criminals intercepting payment channels and taking over user accounts. Blockchain is a valuable addition to the defense mechanism of financial enterprise offering services to other businesses and clients. In short, it helps in risk management which contributes to financial stability.

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To sum it all up, FinTech uses a set of technologies including Blockchain, Big Data, and Artificial intelligence to set the pace in the financial services industry by creating financial stability.

FinTech uses Blockchain, Big Data, and Artificial intelligence to set the pace in the financial services industry by creating financial stability.