Emerging Fintech Trends That You Should Pay Attention To

blog image

The financial technology (fintech) industry has been experiencing rapid growth in recent years. Fintech companies are now responsible for over $1 trillion in global transactions every year. The trend is showing no signs of slowing down, so in this post we'll look at 5 emerging fintech technologies that you should pay attention to.

1. Contextual Chatbots

A chatbot is an automated customer service agent -- a program that converses with clients. While chatbots are nothing new, their functionality keeps improving, and recent developments have transformed chatbots into programs with contextual awareness. The chatbot 2.0 is the contextual chatbot, and it’s capable of superior responsiveness because cutting edge AI and machine learning technology power its cognition.

A contextual chatbot has a long memory; it analyzes a client's past interactions so that it can adapt its behavior to each individual. It is self-improving. It can pick up emotional cues and change its service approach based on the emotional state of the customer. It has a sensitivity to its environment.

In the future, fintech companies will be innovating new features for contextual chatbots, and it'll change the service activities of the financial industry.

2. Biometric Security Systems

In the past, we memorized pin numbers and passcodes to access banking services. But times are changing because soon people will present their biometric data instead of their bank card. The most common types of biometric information are fingerprints, voice recognition, and iris scans. All three can be used to authenticate a customer’s identity, so expect the human body to replace the PIN number.

Biometric security will make life more convenient because people won’t need to carry around different cards and identifiers. Banking security experts also hope to reduce cyber fraud via biometrics.

3. Voice Recognition

Voice recognition is exploding all over the world. Millions of Americans use a voice assistant in some capacity. Voice recognition happens when a machine registers a user’s voice and then follows the user's instructions. The most common voice recognition assistants include Alexa, Siri, and Cortana.

Voice recognition will skyrocket in the future. The rise of hands free-banking will make it possible for people to transfer money, check their accounts, or make deposits using nothing but the spoken voice. It’ll even allow people to make payments in stores and restaurants just by speaking. Voice recognition will become a major tool in online banking.

4. Big data and Predictive Analytics

The point of predictive analytics is to predict the future. There’s nothing magical about it, however, as the predictions are statistical likelihoods that AI infers from past client behavior. Companies can use big data and predictive analytics to improve their sales and service activities. Financial institutions can now gather real-time analytics about customers in order to personalize recommendations or suggestions.