The FinTech industry took the world by storm. Yet, experts have claimed that the industry is still nascent and growing. Although, we have seen so many innovations in the industry that weren’t available five years ago, yet, there seems to be a sporadic trendsetting. FinTech holds so much potential, and as a matter of fact, FinTech is still at its infant stage.
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The truth is that, if you or your business fails to keep up with industry innovations, you are both headed to hit the rock. This is why one ought to know the trends in various industries, no matter their niche. And the government is not excluded from observing this trend. This article focuses on the top five biggest trends happening in the FinTech industry.
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The Rise of Virtual Banking
When we talk about virtual banking, we aren’t talking about digital-only payment like Flutterwave, PiggyVest, and the rest. We are talking about cloud banking and free-floating financial platforms that will affect the way we think about banking. Who knows? This might be the beginning of the end of physical banking halls. The whole banking sector will take place entirely online, from virtual debit and credit cards to the opening of an individual and corporate account.
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Blockchain Technology
Yeah, blockchain is now the buzzword of the century. You might ask, what is blockchain all about? Block is all about distributing databases among nodes of a networked computer. Blockchain is all about data tracking, data sharing, data security, and data distribution. With blockchain technology, cybercrime will be contained. It will power many sectors, from banking and finance, to health, to politics, and business.
According to Investopedia, the innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party. Blockchain can accelerate asset transfers, payments, and even investments, while simultaneously eliminating errors that cause delays.
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Artificial Intelligence and Adaptive Machine-Learning Technology
Have you ever imagined using speeches to carry out financial transactions? Like you seem tired of using your keyboards to run your transactions, and all you just have is a machine that will say “your wish is my command.” Then worry not, because you are about to see a technology that will do just that. With the help of algorithms, you can get the credit card number of a recipient and transfer an amount into his bank account, without going through the hassle of the mobile banking app. Everything will be done through automation provided by robotic processes, machine learning, and artificial intelligence.
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Payroll FinTech
The hassle of manually writing the list of employees on Excel spreadsheet or some other spreadsheets, to have them on payroll, will be automatically done through technological means. In 2022 and beyond, businesses and government institutions will adopt payroll options like salary on demand, salary advances, crypto payroll, and early direct deposit. This is when a group of employees in a singular database will be paid through an AI-powered app.
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Hybrid Institutions
It will no longer be surprising that institutions will do away with physical cash and pay people with virtual currency. You might receive your credit facility in virtual digits and you will also repay in digits. Central banks will no longer print money, but will engage either converting existing cash to digits or mining these currencies through programming. Furthermore, there will be the rise of RegTechs and InsurTechs.
A Final Word
There you have it – top five trends to watch in the FinTech Industry, come 2022. As a business person, a student, a government official, or an individual, we must evolve with times, otherwise, we would be left behind
Featured Image Source: FinTech Futures
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