From Online Banking Apps to Digital Wallets: Fintech Trends You Can’t Ignore

Fintech is changing the way people manage their money, make transactions, and access financial services. Fintech combines advanced technology and financial services to create convenient, secure, and efficient solutions for banks, businesses, and customers.

Banks and other financial institutions are actively implementing fintech solutions to improve customer service, automate processes, and improve the security of financial transactions. Thanks to emerging technologies such as artificial intelligence, blockchain, open banking, and cloud storage, companies can offer personalized services, reduce costs, and respond to growing market needs.

In this article, we will examine the key fintech innovations affecting the financial sector and their role in the development of banking and financial services.

How Fintech is Transforming Banking: The Latest Trends and Innovations

AI-Powered Finance

Today, there is probably no industry left that has not been affected by artificial intelligence. Not least of all, this applies to the fintech sector, where calculations and financial transactions are key. As in many web solutions, AI  is now actively used for data processing and analysis. This applies to the analysis of customer behavior on the platform, which is carried out using a machine learning model. An example of  ML(Machine Learning) model built, connected to the platform using API, tracks customer’s behavior and generates personalized recommendations based on previous actions.

In addition to analyzing user behavior, analytics using artificial intelligence is also relevant for creating forecasts for the development of a financial institution, as well as the further development of a marketing campaign.

In addition, AI(Artificial Intelligence) is actively used in chatbots to provide a personalized customer experience. Chatbots, unlike live operators, are available 24/7, have no days off, and do not require additional fees.

How Blockchain is Transforming Fintech

Blockchain is a general immutable system that facilitates the process of recording transactions and tracking assets on the network. Blockchain is a universal technology, since the assets stored in the system include both material objects (buildings, clothes etc) and intangible property such as copyrights, patents, branding, etc. The same algorithm can be applied to information related to financial transactions. Because the blockchain system is built in such a way that each step of the transaction and the object recorded in the system cannot be changed or corrected.

Also, users choose blockchain as a more reliable and secure database, because it’s a system that allows you to safely conduct financial transactions online without the need to contact a banking institution. So, the blockchain technology also allows users to verify data independently, which increases trust between stakeholders.

How Open Banking APIs Are Enhancing Digital Identity and Security

Open banking is a concept that involves providing open access to data to a third party using API. When making a financial transaction, you transfer data to a third party, which provides a guarantee for further data protection. This technology is still actively used by financial institutions today, which complies with international data protection protocols such as HIPAA. Our developers already have experience in developing a fintech platform using third-party services.

For example, we developed the Groovv platform for retirement payments. To organize secure payments and maintain balances, we used a model for conducting transactions with the involvement of a third party. This model meets the security standards for the country for which Groovv was developed. In addition to using a third-party platform to store data, we used manual processing and validation of financial payments by the admin.

Cloud Technologies: A Game-Changer for Banks and Financial Institutions

Another reliable way to protect and provide access to data is cloud storage. Cloud storage has proven its effectiveness in the financial sector due to the fact that it helps save money, reduce the scale of a web project, provide security, and accelerate the provision of necessary financial services, etc.

As for saving money, cloud storage offers customers pay-as-you-go payment, when a client pays only for the number of services used, and not for the entire package of services provided. Also, this approach allows you to scale the storage and the volume of work without having to pay for unused parts of the storage.

In addition, cloud storage will provide reliable security and data protection mechanisms that prevent hacking and data tampering, and at the same time quickly provide the necessary data to registered users upon request. One of the most popular and reliable cloud storages and tools is AWS, which we also wrote about in the article.

Banks and financial companies are actively implementing solutions based on open banking, digital wallets, and automated financial management services. This allows them to improve the security of operations, speed up transactions, and make financial services more accessible to the general public. To remain competitive, financial institutions are actively integrating the latest technologies into their operations. 

Fintech has already become an integral part of the financial sector, and in the coming years we will see even more innovations that will change the way finances are managed, payments, and banking operations are carried out. Those companies that can quickly adapt to new technologies will gain significant advantages and strengthen their positions in the market.