Source: Forbes

With many innovations in the field continues to grow through the implementation of many areas of technology, such as chatbots, artificial intelligence, digital banking, blockchain, and augmented reality. Because of these changes, many businesses are able to supply services that are of high quality and affordable prices.

Fintech Market Overview

The market for fintech companies continues to grow. The Global Fintech Market is valued at USD 112.5 Billion in the year 2021 and forecast a value of USD 332.5 Billion by the year 2028. With this market growth, they can set themselves up to serve consumers on a more personal level. The idea is to develop a system that can also provide a unique experience. With the use of these improvements, the consumers are able to have an experience that is more positive.

Before we take a look at the innovations shaping the fintech world, it is important to have an understanding of what fintech is and how it functions.

What is FinTech Innovation?

When it comes to fintech, it pertains to a company that implements technology in order to have their financial services automated, modified, or enhanced for consumer use.

How FinTech Functions

With fintech being able to cover many areas, we are able to understand everything about it. In its simplest, fintech makes all consumer transactions smoother, affordable, and accessible. FinTech is also used alongside blockchain, big data, and AI so that internal transactions can remain secure.

Having fintech also provides a smooth running of transactions so that undesirable actions can be avoided such as using peer 2 peer payments as opposed to cash payments.

Now that we have covered FinTech and how it functions, below we have 5 innovations that have an impact on consumer experiences.

1. Consumers Can Be Educated By Virtual Assistant And Chatbots

The implementation of virtual assistants and chatbots has been able to improve the way we get our information while using our mobile devices. Also, many fintech businesses have begun to incorporate many of the technologies that can help educate consumers through the content they create. Due to many consumers not having any financial know-how, they will usually look for suggestions from institutions.

Before virtual assistants and chatbots made their appearance, consumer was helped by a human so that their options could be better understood. However, many of the questions that the consumer has will be similar but varied. While many financial institutions attempt to have as many questions answered as possible through the use of a FAQs page, it can be a challenge to sort through them to find your answer.

Because of this increase in difficulty, many financial businesses have incorporated the use of virtual assistants and chatbots who can provide content and important information in an effective manner. A good example of this is the use of Alexa Skill to help consumers with bill payments and other banking necessities.

2. Incorporating Predictive Analytics Through AI

With AI having a hand in many virtual assistants and chatbots, it is also able to play a big part in predictive analytics so that the experiences a consumer has will be on a personal level.

Many banks today have the ability to access consumer data, they can also establish a real-time solution for all of their financial needs. This ability was unheard of before, but with its implementation, it may make many financial processes easier.

From a bank’s point of view, predictive analytics are able to create consumer packages. This will also help in fraud prevention, retaining customers, and improving the loan process.

3. Digital Banking

A lot of consumers have confidence in a physical financial institution. Regardless, it seems like this feeling has begun to change and move toward the digital realm. This digital realm is in the form of a continuous amount of banking apps and websites. While this digital realm is nothing new for many financial institutions, many banks are starting to become completely digital so that consumers can have quicker financial access.

Having banking software development tools allows the bank to incorporate new banking methods, such as digital banking. Having digital banking decreases the amount of costs the bank will endure. This allows the bank to provide their services at a lower price but with a high level of quality. While there will be an increase in digital banking, there will be a need for traditional banks to remain competitive.

4. The Blockchains

Although the blockchain is a topic that is constantly debated, there continues to be a huge amount of consumer benefits through its use.

In fact, many of the world’s largest financial institutions are attempting to provide a continuous amount of services through blockchains. If they succeed, the service cost for the consumer can be decreased. Having this technology will be able to make an impact on many other industries.

5. Implementing Augmented Reality

Many fintech companies are becoming enhanced through augmented reality so that the consumer can have an enriched service.

Augmented reality is a practical option for many and without the necessary headsets to use it. In fact, consumers are able to utilize this technology through a mobile device. From the financial point of view, the banks are wanting to have this accomplished for their physical bank locations.

In fact, a few of the well-known banks have already implemented this technology to allow the consumer to make direct interactions with bank staff. This ability allows the bank to provide services that are physical and digital in nature. This permits the consumer to have a connection with the bank

Conclusion

Today’s consumers have continued to benefit from emerging technologies in banking and with the market being competitive, it is important that consumer confidence remains high. When the financial institution allows new financial technology, they will be able to gain more loyal consumers.