Financial technology is the fastest growing industry. At the moment, there are three main areas of development – finance, loans and payment systems.
Fintech products are actively integrated into our daily life, due to growing distrust of people towards traditional banking. Let’s take a look at the main trends in fintech development in 2021.
– Automatic aggregation of accounts and subsequent analytics.
The system independently collects the necessary client data and, on their basis, generates a digital passport of the client, thereby freeing him from going to the appropriate authorities in order to collect all the necessary papers, documents and other things. Such a passport is necessary, for example, for quick credit scoring and assessment of possible risks.
– POS lending, in particular lending by installments. Banks offer cards with installments, and most of the goods in stores can be bought by issuing a loan for it right at the place of purchase and as soon as possible.
– Instant investment. Interest in investing in general, even among ordinary people, is growing steadily in all countries. For example, in the United States, more than half of the population trades. The trend of these startups is to simplify the process of buying investment products, literally with one click.
– Open banking – providing access to banking data for partner companies using open APIs that allow you to create applications and services for clients of specific banks. This leads to the creation of a global marketplace for financial information services. For example, it will be possible to manage your accounts opened in different banks in one application. In the same place you can apply for loans or pay for services.
– Alternative platforms for e-commerce and simplification of work with mobile wallets. More precisely, the very idea of mobile wallets is already quite developed, the emphasis is shifted to expanding the functionality. For example, Asian WeChat is an electronic messenger wallet. Through the wallet of this messenger, you can pay not only in China, but also around the world.
It’s about simplifying data exchange and transferring P2P payments from ordinary banks in favor of private fintech companies, which people now trust more.
– Pay on demand is a way when an employee can request to receive part of his salary before its official payment, or, for example, withdraw payments on a daily basis. This was developed due to the crisis and pandemic. Examples of such startups are Even, Dayforce Wallet.
– Crypto infrastructure
Cryptocurrency soon it may become a completely ordinary currency like the Euro and the Dollar. In a number of countries, own national cryptocurrency is being developed.
Primitive operations are already common for services that work with cryptocurrency. There is a tendency to expand functionality and investment opportunities.
Summing up, I can say that today fintech is a serious competitor to all traditional financial institutions. Fintech startups may in the future become an intermediary between the bank and the consumer.
The fintech market started with digital payments, and now includes a huge number of services and financial products. Now you can get a loan, make a purchase, buy insurance, open an account, order a card online only. The revolution in technologies, analyzing big data and predictive analytics made it possible to develop electronic services that surpass the analytical capabilities of a person.
What do you think of the ongoing progress of fintech? Share your opinion in the comments below! I will be happy to answer any questions or submit your project to my team at Astorts Group for evaluation.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.