Executive Summary:
The FinTech industry is one of the most developing and growing markets in recent years. Under the collective name FinTech (which still lacks a clear definition even within the industry), financial services are understood within the framework of the Digital Market Outlook; digital infrastructures allowing the establishment of new types of agreements and procedures in the classic areas of banking such as lending, investment strategies and payments.
We discuss FinTech Market Research trends. We decided to split FinTech trends into 3 categories (General, Customers, Technology). Please see below FinTech trends associated with particular category:
Fintech Trends in detail:
Microservices
Microservices are unique solutions that have a huge impact on the Fintech industry. They give the flexibility to develop innovative, groundbreaking technology and agility to adapt to changing circumstances and competitive forces. Microservices offer a completely different technology proposition. They are independent applications developed, deployed, and maintained separately to deliver on specific business requirements. These microservices help solve common, complex issues like speed and scalability while also supporting continuous testing and continuous delivery.
Fintech-as-a-Service
Fintechs technologies are a desirable solution for many traditional lending companies looking to leverage advanced business functionalities and financial processes. Many Fintech startups are looking forward to selling their technology platforms as a service to corporations in the field. These FaaS platforms integrate seamlessly with any existing back-office of traditional banks and provide for non-banks a cost-effective and fast way to launch various financial products and services.
Embedded Finance
There will be strong growth in embedded finance (e.g., buy now and pay later programs, embedded insurance options) and banking-as-a-service offerings and in related partnerships. Indeed, a Boston Consulting Group (BCG) survey across 15 countries published in May found that a hefty 44 percent of 18-to-34-year-olds had enrolled in online or mobile banking for the first time during the COVID-19 crisis.
Cryptocurrencies
Cryptocurrencies like Bitcoin and Ethereum have indeed proven resilient. Investor interest, both retail and institutional, in digital currencies has risen dramatically in recent months. Many early investors who were eager to make gains from the “cryptocurrency craze” have since moved on to other ventures, leaving a smaller group of stalwart HODL-ers behind. But there are still reasons to believe that the cryptocurrency industry has some fight in it left.
Digital Payments
There has been a rise in the demand for new forms of digital payments which are much more secure and reliable. This has been able to transform payments into an open ecosystem where various parties like FinTechs, banks, payment firms etc are trying to evolve the digital payment system by introducing new technologies. The government, on their part, are trying to come up with certain regulations in order to reduce the ecosystem threats.
We were able to notice a massive growth in the digital payment transactions in the span of 4 to 5 years but with the pandemic the growth was motivated by the need for cashless and contactless payments. Thus Non-cash transactions are seen to be on a robust growth path.
Fintech as a new bank
Fintechs technologies are a desirable solution for many traditional lending companies looking to leverage advanced business functionalities and financial processes. Many Fintech startups are looking forward to selling their technology platforms as a service to corporations in the field. These FaaS platforms integrate seamlessly with any existing back-office of traditional banks and provide for non-banks a cost-effective and fast way to launch various financial products and services.
Artificial Intelligence and Machine Learning
Both brick-and-mortar banks and fintech companies are adopting AI solutions at increasing rates. Partly, this may have been spurred on by the pandemic, but it’s a trend we’re increasingly seeing. AI and machine learning solutions are being applied in many business areas, from customer service chatbots to fraud detection, to analyzing the right financial products for a client.