Top 7 FinTech Trends to Know in 2021

ByShardul Bhatt

The FinTech industry is booming. More than 64% of the consumers worldwide use some type of FinTech application. In 2020, FinTech solutions witnessed tremendous growth. Digital finance became a convenient way to transact without stepping out from the comfort and safety of homes.

FinTech companies are leveraging this transformation to their benefit. The number of FinTech apps is increasing day by day. Whether it’s digital banking or money transfer, every category in the FinTech market is seeing growth. Even the cryptocurrency app market is going through a rapid change as the technology becomes mainstream.

The rising demand for Fintech digital solutions also gave birth to new FinTech trends that are captivating consumers worldwide. The latest FinTech trends focus on making finance more accessible and simpler for the average consumer. Since the FinTech app development cost is coming down and secure apps can be built easily, companies are considering solutions to meet the requirements of digital customers.

This article will highlight the top 7 FinTech trends 2021 has witnessed and how they are shaping the future of the FinTech industry. Any FinTech app development company can help businesses to create a FinTech app and reap the benefits of digital finance to its customers.

Checkout:  How To Use Python for FinTech Applications

Top 7 FinTech Trends That Everyone Should Know in 2021

Today, an increasing number of urban customers are relying on digital finance. They want virtual solutions that can help manage their finances, make payments, purchase products, pay bills, and do much more. 

Here are the 7 FinTech trends 2021 has witnessed that everyone should know about –

  1. Mobile banking solutions
    This may sound like it has been there for a long time, but mobile banking is on the rise. There are more than 57 million mobile banking users in the US. Consumers want to eliminate the hassle of visiting the physical branches and operate the entire banking transactions and facilities on mobile phones.

    Today, banks are enabling people to get a credit card, pay bills online, check their loan status, transfer money, and much more. Mobile FinTech app development is a priority for banks as more and more consumers move to mobile devices.

  2. Contactless payment 
    One of the latest FinTech trends of 2021 is contactless payment, which became highly popular due to the pandemic. People now want to minimize their contact with EPOS and ATMs and even handing cash to others. Contactless payments are now the first preference for consumers across the globe.

    FinTech software development for contactless payment sees dramatic growth. There are solutions where people can scan and pay or just input the device number and make the payment. QR codes, peer-to-peer and NFC transactions will see high growth as people make a move back to offline stores.

  3. Decentralized finance
    The emergence of Blockchain has totally changed how the financial industry thought about decentralization. FinTech enterprises and startups are building decentralized solutions that make finance easily accessible to people worldwide. Blockchain is enabling them to create a network that easily accommodates decentralized finance.

    Decentralization removes the intermediaries from the system – banks, money transfer exchanges, and others. Blockchain is a highly secure network that will enable transactions to occur with complete confidentiality, which people can trust and transact with. Decentralized finance will enable people to transact directly with each other without any middlemen.

  4. RPA-facilitated solutions
    Today, RPA is one of those FinTech trends that is enabling banks and financial institutions to become more productive and efficient. They can leverage RPA to automate mundane processes, and a software development company can build such solutions.

    RPA-facilitated FinTech solutions assist institutions with quick loan verification, identity verification, regulatory compliance, online loan processing, and more. RPA bots also enable banks to complete data entry tasks that can lead to better outcomes. Such solutions focus more on the business-to-business aspect of the FinTech industry rather than directly impacting the consumer.

  5. Digital wallets
    Now, more than ever, companies are capitalizing on the FinTech trends in India related to digital wallets. Everyone wants to eliminate the hassle of carrying cash, which has given rise to digital wallets across the globe. There are more than 10+ popular digital wallet options that consumers can utilize for online transactions.

    Today, digital wallets are one of the best FinTech solutions as well. People can directly transfer money to different bank accounts without a long wait. They can purchase products and make payments on both online and offline stores. The Indian government is promoting UPI payments to encourage digital finance and driving the revolution to make people more inclined towards digital finance.

  6. Algo Trading
    The use of Machine Learning and Deep Learning is enabling FinTech companies to build algo trading solutions. These are apps that are based on Artificial Intelligence – companies integrate algorithms with trading software to monitor the fluctuations in the price and then make the best bet when the algorithm shows so.

    The primary aim of algo trading is to surpass the speed and computational capabilities of humans and make more profitable deals. Any FinTech app development company can build algo trading solutions depending on various parameters to monitor the fluctuations and trade on different stock exchanges.

  7. Optimized Cybersecurity
    Last but not the least, the focus on cybersecurity is increasing day by day. FinTech is becoming more concentrated around secure solutions rather than convenience. As the older generations become aware of FinTech solutions and continue to use them, the industry will deliver better apps that protect customer data.

    Confidentiality and privacy are two primary drivers of FinTech app ideas. Especially in IoT, where devices communicate with each other, cybersecurity will become a significant contributor to drive their success. FinTech predictions suggest that applications with a focus on data protection will thrive in 2021.

Read more: RPA in Finance and Accounting: 7 Best Use Cases

Conclusion

FinTech is emerging as one of the most diverse industries in the world. The latest FinTech trends will surely change in the next year, but they are here to deliver best results. Understanding these FinTech trends will give better insights into what the world wants and where the FinTech industry will move in the future.

And such products are only built by a custom software development company like BoTree Technologies. 

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