In the last few years alone, technology has altered the way we manage and interact with our finances. For example, the rise of budgeting and savings apps has allowed users to automatically add to their savings. Banking is set to continue evolving thanks to these new and innovative trends in fintech.
Artificial Intelligence Assistants
Digital voice assistants have boomed in recent years, with many people using these gadgets in their home. Now, in addition to answering our queries around the house, artificial intelligence assistants could be utilised in banking. From in-branch robots, to AI call centres and online chat bots, this could offer customers greater convenience and faster answers.
Use of Biometrics
While digital banking has provided customers with a greater level of convenience, it also brought about a higher level of risk, with cyber-attacks posing a real threat. As such, the finance sector has been developing more advanced security techniques, including biometrics. This would allow authentication or payments to be completed using a finger print or iris scanner, drastically reducing the chances of fraud.
More Digital Banks
Traditionally, we are accustomed to using high street banks, where branches complement a range of online banking services. The industry has already seen companies moving away from this model with the creation of online-only banks, operating solely through websites or apps. This is a trend that is set to continue, with more people expected to use digital-only for everything from managing borrowing to their cryptocurrency portfolio.
A Cashless Society
The way we pay for goods and services has changed drastically in recent years, with the rise of contactless payments and mobile wallets. This rise in tech has changed the way we use and interact with cash.
For example, recent research has revealed that in the UK, cash payments have fallen drastically, from 62% of transactions in 2006, to 40% in 2016. This figure is predicted to fall further, with estimates claiming that by 2026, cash will account for just 21% of payments.
Uptake of Blockchain
Blockchain has disrupted the financial industry, providing an inalterable digital ledger that can store databases, keep a transparent record of transactions for all parties involved and make funds instantly available. All of this has the potential to benefit both banks and their customers by improving efficiency, reducing paperwork and admin time.
Essentially, each of these fintech trends could further revolutionise banking, benefitting customers with more efficient ways of managing their money, investments and more.