Nowadays, digital is king. We do almost everything online, not just because it’s convenient but also because of new possibilities. The banking industry is no exception. Though it was once an old-school institution, banking has been transformed by innovative FinTech trends.
At the same time, these trends have accelerated during COVID-19, as customer needs have become almost exclusively digital. Let’s go through some exciting new trends that are changing how we bank:
1. Finance app usage
Visits to bank branches are predicted to drop 36% between 2017 & 2022. And there’s good reason for it: finance apps let you do everything you need at home, from resetting your pin, paying bills, reviewing your balance, applying for banking products, etc. Finance app usage has become extremely popular and all banks these days need a finance app to keep up.
2. Ecommerce usage
Another giant trend: shopping online. Ecommerce is booming and customers expect to pay easily online, whether through credit cards or some other banking solution. Customers are even buying more on their cell phones, with mobile commerce expected to take up 72.9% of ecommerce by 2021. In this way, banks have kept up with digital-friendly cards, transfers, integrations and payment gateways.
3. Contactless digital wallets
Contactless payments have become a big deal during COVID-19. Governments and stores have encouraged customers to use contactless payments in order to avoid physical contact with retailers. In any case, contactless cards and digital tap wallets have been popular because of their convenience and app integration.
4. Digital-only banks
Digital-only banks may have seemed impossible a few years ago, but now there are a dozen digital banks to choose from including Revolut, Moven, Monese, HelloBank, FirstDirect and Digibank. Often digital-only banks offer innovative features, quicker transaction time and fairer currency exchanges, which may appeal to customers who are looking for future-friendly banking.
5. Digital currencies
Bitcoin took the world by storm, but it’s hardly the only cryptocurrency. These days, digital currencies have become commonplace for regular customers who value privacy and independence, as well as investors and companies. You may see companies dealing in digital currencies through redeemable reward points, too.
6. Biometric security systems
With everything going digital, security has become paramount. One digital breakthrough is biometric security, which requires fingerprint or facial recognition. This may be the future of banking security, as it creates individualized security patterns that aren’t easily bypassed.
7. Fraud-busting AI
Finally, banks are successfully combating security flaws and fraud. In the past, fraud was tedious and time-consuming to investigate. Now, banking AI can better identify banking patterns and flag potential fraud before it happens. This type of fraud-busting AI will be able to fight back against cybercrime, as well as improve customer service issues.
Ultimately, FinTech has brought banking into the future. These trends are sure to improve how we bank today. We can’t wait to see what else FinTech has in store for this decade.
Looking for banking app developers? Reach out to our team to find out how we can build a secure and robust app for your organization.
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