According to the research shared by Plaid, consumers who have an annual income below $100,000 say that fintech helps them save over $360 every year in interest and bank fees. 73% of people say that fintech technology makes them feel more in control of their finances and 68% say that it reduces financial anxiety.
Fintech can improve consumers’ financial well-being across many aspects, especially economic self-education and confidence.
With growing popularity and acceptance levels, Fintech is making huge technical strikes as well. In 2021, fintech can be considered one of the most crucial and revolutionary tech innovations. In the United States of America, 59% of people advocate for using more fintech apps now than they did prior to the pandemic.
More businesses are shifting towards fintech services as the biggest fintech companies say that they are deriving customer satisfaction at a very high rate.
In this blog, we’re going to talk about some of the leading trends in financial services technology in 2021. Stay tuned to know all of them and understand how they can be helpful to your business!
Many fintech startups in 2021 are focusing on educating youngsters about debt, budgeting, portfolio management, investing and other aspects of financial health. This comes as a wise move in a world where K-12 education teaches kids almost nothing about managing their personal finances.
Research suggests that children set the foundation of their money habits by the age of 7, most of which is influenced by their parents. This psychology is being reaped by the biggest fintech companies.
One example is the Goal setter, a startup providing next-gen education-first banking experience to young children. It’s a family finance app with overall funding of $4.5 million.
In the US, 64.6% of people are using digital banking in 2021. It’s one of the most popular forms of fintech technology.
In today’s tech-savvy age, banks can provide you with all services virtually – from P2P transfers to taking loans, everything is just a few clicks away.
Digitized banks have enhanced customer experience with their convenience, adaptiveness, and flexibility. People now have round-the-clock access to banks – that along with reduced paperwork and eliminated queues. Through tech innovation, banks are also offering opportunities to invest in cryptocurrencies.
Research suggests that bank visits are going to drop 36% from 2017 to 2022 due to the rise of digital-only banks.
Finances Online forecasts suggest that the total global transaction value of digital payments by the end of 2021 will be close to $6.68 trillion. The pandemic has only advanced the need for contactless payments and experts in financial services technology have been quick to jump on the wagon.
The added convenience and constant access to frictionless digital payments have made them the most lucrative choice, especially for the Gen-Z. We’re expecting more innovativeness in this fintech trend in 2021 as it has been of the key drivers of business growth in the last year.
Robotic process automation, popularly abbreviated as RPA is used to automate the backend. It includes automation support for customer onboarding, security checks, credit card, mortgage processing, etc. This tech innovation is being adopted increasingly by businesses in the financial sector across the globe because it saves time, money, and labor so execs can focus on what’s most important, personalized customer service.
Blockchain has been revolving around finance at a great pace for the last couple of years, and it’s still one of the most talked-about fintech trends in 2021. 48% of banking executives have a firm belief that Blockchain would have the most influential impact on banking in 2021 and beyond.
It is expected to bring about an overturning revolution in the finance sector because of its entirely new philosophy, one with a modern decentralized finance paradigm that ensures that stored data is protected from any internal or external issues with minimal risk.
The tech innovation has inspired the development of different online peer-to-peer decentralized financial platforms. It’s a distributed ledger technology that is already being adopted by banks in order to reduce expenses and enhance internal procedures processes.
This is just the picture of fintech in 2021, and it’s a speck in the growing revolution that this industry is. As of February 2021, more than 10,500 fintech startups have been registered in just America. The global fintech technology industry is expected to have a value of $222 billion by 2024.
The world is firmly embracing digitization, and we look forward to the technological marvels ahead of us in this paradigm.