Fintech Trends Transforming The Future Of Banking
YRSK | Published: 18-02-22
Even 20 years earlier the idea of using a mobile app for all financial needs was just above a pipe dream. Did you think of going on solo travel with your tap and pay card only in the 80s or 90s! Never! However, now financial technology firms or fintech companies have developed a considerable fintech target market, which crossed $30 billion in 2020 only. The digital banking industry trends have been successful in bringing about substantial growth opportunities in the sector and developing medical disruption in the Indian time period. A major contribution of fintech inbound marketing can be experienced in this outcome.
Among current uncertainty regarding traditional banking, it is certain that the fintech industry is going to flourish in the future. That option rate of fintech target audience increased from 16 % in the year 2015 to 64% in the year 2019.
The organisations need to understand the necessity of implementing a digital finance solution for improvement of efficiency and fluidity of service which provides I'm scope of more profitability. This is where the role of fintech companies comes in. There are some spontaneous fintech trends that are all set to change the face cover of the finance industry.
Engagement of underserved markets
The World Bank considered that 1.7 billion people in the world are not currently covered by any financial system. In fact, 20% of the population in India is also not covered by banking infrastructure. The fintech India initiative in recent years is exhibiting a surge in valuation amounting to $31 billion in 2020. Which a population strength of more than 1.3 billion it is not surprising that external investment is pouring into the country for the development of more consolidated fintech banks. According to recent reports, India has more than 100 million microfinance accounts in the living startups like PAYTM which has an average of individual 300 million no wallet accounts linked with them. The benefit of fintech bank startups in trying developing markets is that they will be able to operate without any competition and insecure better funding scheme from the investors so that they are able to rapidly capture the market with better market shares. The fintech target audiences are also looking out for innovative fintech solutions for their convenience in payment and other ventures.
Embracing Blockchain Technology
The fintech target market is also comprised of a considerable section of customers willing to embrace blockchain technology full-stack blockchain is one of the trends of fintech bank adopted strategies which is highly putting pressure on the traditional system of interbank transactions. It enables period to be a transaction across geographical borders based upon legacy platforms which cannot be available through traditional means of Intra Bank transactions. The specialised benefits of using blockchain technology are lower transaction payment fees for the banks as well as end customers. It will definitely attract the fintech target audience. The advantages also include greater transparency and better security along with all kinds of legal or regulatory compliance criteria being fulfilled. The Lithuanian startup fintech bank called BANKERA has an objective of integrating traditional with creeper economy on a single platform. The key focus is on increasing speed and accessibility for customers along with providing them with the scope of cost-effectiveness with the goal of establishing the bank as a blockchain-friendly fintech bank that offers financial services like that of crypto-backed loans to organisations as well as individuals around the globe. This is how fintech companies are diversifying the banking service from that of traditional banking.
Fintech Inbound Marketing
The easiness of fintech inbound marketing in South East Asia where the technology is rapidly gaining ground will help investors from around the world to develop their business segments here. It is estimated that by the end of 2024 75% of the biggest fintech companies will have their presence in this part of the world. Fintech bank not only has any customers like individuals as their only target customers. On the contrary, the fintech target market is also comprised of popular companies like e-commerce agencies in the form of Apple or Alibaba and Tencent or Google. In fact, reputed banking companies like the Bank of America have been using AI-driven software which is developed by fintech companies. Neo banking solutions are an innovative way forward in banking available for millennials and generation Z digital citizens. It is digital-only banking and it is to future as well.
These fintech companies will have a different impact on different industries. It is high time for the emerging or big companies to consider how they will adopt a fintech model version for the organisation to gain popularity and profitability.