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Fintech Trends To Watch Out For In 2021

All of us are waiting for the COVID vaccine to be readily available for masses, after testing and approval by regulators across geographies. In a way, the vaccine shot opens up a door of opportunities and frees up the pendulum of hope to oscillate freely.

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Dawn of 2021 is knocking on our doorsteps, waiting to usher in the year of hope and set a new foundation for world order. The one we are leaving behind, “the year 2020” can be looked at as a “Reset” year. In 2020, all over the world, people were forced to sit back, reflect on their work, lifestyle & goals, and reimagine the future. In the last few months, our lives stopped oscillating between hope and despair freely, and instead, our thoughts and actions operated within zones of caution under a force no less powerful than the gravitational force - the COVID onslaught. So, we patiently waited for the year to pass by.

The wait for 2021 is comparable to the anxiousness of a 17-year-old waiting to turn 18, as, at that sweet age, one attains the freedom for various things, ranging from marriage to a differentiated opinion. All of us are waiting for the COVID vaccine to be readily available for masses, after testing and approval by regulators across geographies. In a way, the vaccine shot opens up a door of opportunities and frees up the pendulum of hope to oscillate freely.

Let’s look at its few chapters which would still be relevant in 2021 -

Invisible Payments

Invisible payments take physical payment methods, such as cash, debit, and credit cards, out of the equation—creating a convenient and contactless experience. The need for cashless transactions in this pandemic economy is expected to generate more opportunities for digital wallet operators.  The use of mobile applications like Google Pay, Paytm, PhonePe has seen a large increase in adoption in the Indian market. These mobile payment applications have pretty much removed the need to hold cash in your pocket. Transactions that are digitally connected will not only help improve transactions but will also help the industry to collect relevant data. This data can then be used to provide new and improved services. According to KPMG, The Digital payment market in India was valued at INR 1,638 trillion in FY 2019 and is expected to reach to INR 4, 323.63 trillion by FY 2024. The popularity of these mobile wallets has increased in recent years, particularly following the drive of the Indian Government's "Cashless India" initiative. The goal of this initiative is to turn India into a digitally empowered country, with a strong focus on "cashless" financial transactions.

Communication and consumer education

Technology is playing a vital role in digitalizing consumer demand. As more and more consumers join the digital ecosystem, Fintechs will have to concentrate on building confidence and user engagement, especially given the time when cybersecurity is extremely vulnerable. In order for fintech to stay relevant, it is important to concentrate on safety and make the process as easy as possible for customers. While the digital payment process may not be unique to few segments of the population, it is a completely new world for another segment. As a consequence, it is the duty of the brand to create clarity in communication and processes to ensure safe and fair transactions.

One platform, multiple services

Just like a shopping mall provides multiple offerings in one place, customers these days look for all financial services to be provided via a single platform. Many Fintech brands have already rolled out this process of providing multiple services through a single app. However,  increasing the offering of robust solutions through powerful API integrations would speed up the transformation. In the coming days, consumers who need banking services are likely to turn to those financial players who can deliver convenience and ease of transactions that are safe and stable.

Blockchain and big data

Blockchain and Big Data are two technologies that are in full swing, but they are two complementary technologies as well. According to the experts, brands embracing burgeoning blockchain technology would profit the most. Companies providing financial services will be able to reduce fraud, phishing attacks, and enable secure payments. One of the other aspects that Fintech needs to bring to their attention is—Artificial Intelligence, Machine Learning, and Data Analytics. Both of these will help financial services bring process efficiencies, reduce costs, and scrutinize risky transactions.

 According to Autonomous, a financial consulting company, 'AI is expected to reduce operating costs by 22 percent by 2030’. These benefits will ultimately trickle down in form of safe and affordable services for the consumers.

Customizations and Localization 

Fintech has always been recognized for its age-appropriate technology to give customers the most convenient and versatile choices. It is not surprising that, in the future, financial services will give their customers a personalized and localized product using data analytics. The more technologically advanced financial services become by updating their strategies, the more progress in this field is guaranteed. This is just the beginning of a revolution in the Fintech industry.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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FinTech LoanTap

Satyam Kumar

Satyam Kumar, Co founder, LoanTap.

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