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As well as transforming people’s way of performing everyday financial tasks, the fintech industry is also transforming itself, thanks to its highly-disruptive nature. And it comes as new innovations in fintech (financial technologies) which allows financial institutions to serve customers in novel and unexpected ways. And the financial industry is experimenting with automation, predictive analytics, new delivery platforms, digital-only banking, blockchain and more. These changes are helping the institutions provide higher quality services at lower price points.
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As a result, companies in the financial sector are able to better align their business strategies to consumer expectations. The emphasis is on creating better digital processes that consumers can personalize, and these digital fintech enhancements are creating more positive consumer experiences. The innovations created by fintech includes the following:

  • Biometric Identification

Biometric identification is among the top and most effective innovations by the fintech industry, which helps in identification than other tools in financial services applications, such as passwords and short message services [sms].  The biometric identifications system in fintech is harmless and sufficiently robust to resist most fraud approaches and has injected one-click onboarding and payment solutions from any place at any time. For example, in China, Alipay is using facial recognition to verify payments.  The use of biometrics for identification is not just limited to payments, because all over the world, banks and FinTechs have started using fingerprint authentication for all their banking transactions, just as biometric technologies become more widespread in mobile devices, it’s going to be the most secure way for identification in the finance industry.
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  • Quantum Computing

Computing power is an important aspect of the success of any business or financial organization. When it comes to storing and processing data in a secure and efficient way, Quantum computing technology is the best option in the current scenario, but there’s still a lot to achieve for the technology to become widespread. With quantum computing, calculations can be made faster and more efficiently than with traditional computing technologies, which results in a higher level of risk management for any financial organization. Quantum Computing contains design features that make it ideal for use in the finance domain, such as dense packing, which accelerates the whole computing process and reversible operations, which makes it possible to undo operations smoothly. It also can enhance artificial intelligence (AI) and machine learning, as currently AI is used for trading, investing, and managing large portfolios of assets, such as stocks and bonds. This is happening because AI can gather immense amounts of data, analyze it quickly and precisely without bias, and make logical decisions that are programmed through quantum computing. It plays an important role in finance, as it shows the importance of strategy and planning within finance teams.

  • Virtual Cards

Virtual cards are one of the new innovative ways of spending because it has many innovative features that create a safe, convenient, and more controlled spending experience for the users. There are many different reasons that can explain why virtual cards will be embraced by many because it is more convenient than a physical card, allows you to spend wisely by setting spending limits and it has fraud protection. They are safe, sustainable, and can be created with a couple of taps, and truly allows users to control their finances, optimize spending, and protect company funds with ease as they eliminate the need for plastic cards altogether, virtual cards seem like the best way to go hand in hand with mobile wallets, FinTechs, and even loyalty-based financial solutions. In conclusion, Consumers are benefitting from the various technologies that the financial industry is implementing. In a competitive market place, consumer confidence is always important. So, financial institutions that can embrace innovative solutions will enjoy sustained consumer loyalty. Featured image: Brand Spur Nigeria
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This article was first published on 3rd February 2022

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Grace Christos Is a content creator with a proven track record of success in content marketing, online reputation management, sales strategy, and so much more.

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