2018 is around the corner and with the tremendous competition out there, there are just two options left, either to be in the pace with the evolving technologies or just sit back with the traditional concepts. Definitely, you are keen to go with the former, for all good reasons. But that demands ultimate dedication and requires you to be on your toes constantly. With the New Year approaching, the market demand on Fintech is fierce. This new technology has caused major disruption in the concepts of conventional financial services, like mobile payments, asset management, loans, money transfers and fundraising. According to the report Statista, the transaction Value will most certainly show an annual growth rate of 20.5 percent which has generated the amount of U.S $6.9 billion till the year 2021.
So here let’s peep into some of the insights on the present and future of Fintech:
Fintech Solutions to Ride the Blockchain Wave
As per PWC Fintech report 2017, 77% of financial services executives will certainly be adopting Blockchain as a part of in-production system.
There is a public ledger known as Blockchain for all bitcoins (and other cryptocurrencies) transactions. They process in a manner where a block continuously records few or all latest transactions. After the transactions are committed successfully, they are then registered into a permanent database, which is known as Blockchain. A cryptographic hash is produced for every block responsible for maintaining the reliability of data and authenticity of a transaction.
With Blockchain, you are able to share information in a secure manner, get a distributed infrastructure, along with unalterable data transfer with data integrity.
Blockchain is efficient at holding valid transactions, the timestamp, and it is linked to the previous data blocks. This automated and digitized way of validating a transaction successfully does its job in a foolproof way owing to the user signature that is attached to every transaction. Meanwhile, to manage the cryptocurrency services on mobile, there are digital wallets that can be operated via a digital ewallet mobile app.
Increased Mobile Trading
The emergence of Matador and other mobile fintech apps has welcomed new possibilities for anyone keen on investing in stock market. With these services, the trend of brick-and-mortar offices of traditional investment firms is nearing an end and now users can invest without the need of paying broker fees. This way people who have limited capital can easily make investments. In all possibility, existing firms will also start the development of their own software and mobile strategy to enable easier mobile trading.
Increase in Mobile transactions and payments
Statistics show that mobile payment revenue across the world in 2017 is 780$ billion, which is likely to cross 1$ trillion in the year 2019. Big, isn’t it?
It goes without saying that smartphone usage is on a high rise and this has resulted in a huge increase in digital wallets and payment options such as Visa Checkout, Amazon Payments, PayPal, Apple Pay, Android Pay and Google Wallet. These payments modes have been in huge demand in the past and this trend is certain to persist.
In fact, it was revealed in a research that amongst the banking executives, 91.3% of banks are planning collaboration with Fintechs. Being secure and fast, these services will continue to receive the market calls. They rely on other technologies to have powerful and foolproof solutions for monetary transactions, like Host Card Emulation (HCE) is used by Android Pay for better security. HCE does this wonderful job of storing and transmitting the payment card information, like a name of the cardholder, card number, etc. via the cloud. This way information is processed between mobile apps and merchants securely. With these technical concepts to increase, the payments models constructed are more likely to be versatile and secure.
Advanced Payment security with Biometrics
As mobile payments are on a rise, this has also led to an increased requirement for security. Talking in terms of transaction security, consumers definitely desire safety. There have been increased account hacking events occurring from past some time on both the individual and entrepreneur community which has led to huge demands for security and enhanced infrastructure.
The use of Biometric technology plays a major role here as it provides an extra layer of security and as days nearing it is turning to be less futuristic and can be more likely considered as the major evolution in the domains of making transactions. There are companies like Sky Biometring, that proffers the authenticated models based on the face visualization techniques and few other security-related tools like fingerprint recognition and iris detection. These safety layers deliver a high level of validated atmosphere to the consumers thus, saving their financials with a much better approach.
As it comes to memorizing complex passwords for digital wallets or mobile payments, Biometrics tend to be most helpful. With advances in biometrics and encryption, it is easier scanning your iris or swiping your thumb when your smartphone is activated next time for making payments.
This way, in all certainty, Biometric technology is going to be Fintechs ‘right-hand-man’ in the year 2018.
Future of Fintech
With Fintech there will certainly be a major disruption in the way business transactions are processes. It will allow merchants to offer faster and better services while it also conserves easy and safe payments for the customers. Fintech makes it possible for unbanked people to join the digital economy. However, in order to optimize the most of fintech solution, it is vital that you join hands with the right fintech mobile application development service provider. The solution provided by you must be able to effortlessly integrate the latest trends and should be in accordance with protocols and compliance, so as to reach the masses with the great user experience.