Over the last decade, technology has transformed the way businesses operate. Advancement in technology anchors the development of different industries and sectors, making life quicker, easier, and simpler. FinTech has emerged as one of the biggest beneficiaries of the technological shift, which is reshaping the way we perceive and interact with digital assets.
From disruptive trends to enabling advanced services, the sector is using technological progress and innovation to provide better and more advanced services to customers while meeting their evolved needs.
Witnessing a rapid change, the Indian fintech market is booming. The sector is expected to reach a valuation of $1.3 trillion by 2025 , growing at a CAGR of 31%. Let us look at how today’s new-age technologies are boosting the fintech ecosystem and reshaping the way we perceive and interact with digital assets.
Cloud will drive fintech into the future
With the adoption of digital technologies at an exponential rate, cloud computing has emerged as a critical enabler. Organizations have benefited from the use of cloud technologies in establishing a data first work culture, which is one of the leading priorities in the current times.
As technology revolutionizes almost every aspect of our daily lives, the cloud will be the next game-changer in the IT sector. Within the FinTech sector, the surging mounds of data that need to be securely managed, stored, and analysed makes cloud technology an inseparable aspect of the industry’s functionality and its growth.
The DNA of FinTech, which emphasizes responsibility for the custody of sensitive information and speed, scalability, and agility makes cloud technology one of the biggest assets for the sector. From assisting businesses in being more productive to giving increased security, extensive consistency, and unparalleled support with ease of adoption, the cloud will lead the way for FinTech in the future.
Today, speech recognition and voice technologies have gained enough momentum. Most people use voice-recognition on a regular basis, interacting with Siri or Alexa. It has already revolutionized how we browse the net, make purchases, and interact with our devices.
The integration of AI-powered smart assistants and voice-recognition technologies is set to bring a huge shift in how payments are made today. With voice-activation, the smart assistants can directly access accounts for transactions and make payments frictionless, simplifying the lives of consumers and businesses. Seamless payment will lead the way to newer technological integrations in the fintech space.
Banks and fintech entering the Metaverse
Metaverse unfolds a new dimension, a new universe – A three-dimensional virtual environment that mixes augmented and virtual reality with social media technologies to create a simulated digital environment. Metaverse is expected to become an important digital platform for personal and business interaction. It is an ongoing trend penetrating the digital space and is transforming the way people connect, and businesses grow.
In the fintech space, leaders are exploring how new solutions may deliver financial services by developing their own worlds in the Metaverse. In fact, JP Morgan has become one of the first banks to enter the Metaverse.
The future holds innovative developments and utilization of this new space, for e.g., virtual interactions, virtual training, and virtual business. The use of Metaverse technology to develop new business models will pave the way for the next generation of payment providers and could give birth to metaverse wallets – like digital wallets.
These key technologies and trends are giving huge impetus to the fintech & financial sector. While right now, we may think that we are at the peak of technological advancement, but with the ongoing innovation, there is never a full stop for tech companies. To stay relevant in the times to come, just like an individual’s requirement to upskill, organizations must also align with the new-age technological trends.
— Bharath Raj, Director of Engineering and Site Leader of India Strategic Development Centre (SDC) at Blackhawk Network India.