Digital Trends

Digital Trends Of 2021 For Finance Industry

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Digital trends in finance is the core of futuristic financial services. It is a strategic approach that integrates the much-needed organizational changes with the trending technological advancements. This holistic approach of financial management tamed with digital and innovative technology ensures a positive impact on the organization.

Therefore, digital transformation in Fintech or finance is an end-to-end augmentation of processes, practices, and methodologies to improve the value of customer relations and business transactions.

Significance of digital transformation in finance and Fintech

Amid the widespread competitive landscape, financial services have understood that swift and effective execution of the digital trends will deliver an assembly of advantages, as mentioned below.

More valuable customer experience

The core purpose of adopting digital practices in finance was to ensure an improved, consistent and positive user experience for their customers on a real-time basis. Using mobile banking, artificial intelligence, automation of services, and online communication have improved the work culture of financial institutions to match the digitally advanced generation of millennials. Do you know that 42% of bank customers prefer the use of mobile applications to cater to their banking needs as against the brick and mortar bank branch?

Magnified brand reputation

Banks and financial institutions make use of brand management software to align and train their teams about their brand’s credibility. As a result, these employees perform consistently externally to build a greater brand experience for their customers and prospects. Therefore, for improved organizational goodwill and the increase in the digitally advanced segment of prospective consumers, banks must follow the trend and revamp their structure with confidence.

Well streamlined operations

Apart from ensuring the safety and security of financial transactions, the banking and financial institutes are known for their plethora of time-consuming activities. But with the invention of digitally advanced solutions and software tools, a major chunk of finance services get automated and streamlined much before the expected timeline. And all this is done in a properly streamlined manner.

Better reach and increased profits of the business

Be it banks or finance, organizations that have followed the trend and adopted digital practices are the ones ruling the market today. Technology enables the organizations to far reach multiple touchpoints across multi-channels thus increasing the reach of institutions, even to the remote areas.

2021 trends of digital transformation in finance

Blockchain technology 

Blockchain technology ensures the safe trade of finance and Fintech. It ensures a decentralized record of transactions across the entire network spread, in a cost-effective and reliable manner. Apart from this, blockchain technology is of immense benefit in the Fintech industry for auditing, investing and lending, payments, digital identity, or for sending payment across the globe.

Robotic process automation RPA

The implication of RPA technology or robotic process automation ensures that there are a minimum number of human errors and the work is done in a speedy and systematized manner. The application of such automation-based technology enables the financial organization to cater to a large number of clients on a real-time basis and for much longer working hours. 

Artificial intelligence and Machine learning

In the world of Fintech, artificial intelligence and machine learning are used to automate banking and finance services by providing quick processing of data, improved security, and improved customer service. The use of voice assistants in Fintech allows the finance sector executives to improve customer engagement through conversational service instead of lengthy texts over email or chatbots.

Tech-first approach

With finance and banking servicing going digital trends, a tech-first approach is much needed to leverage the benefits of digital services, RPA, AI, chatbots, and even blockchain technology. A tech-first approach mitigates the business risks to ensure that finance and banking organizations make use of all the trending technological practices in a well-strategized and systematized manner.

Digital banking

Although digital banking existed during the pre-pandemic times, it was only after the big pandemic hit in 2020 that digitization in banking and finance experienced a sudden splurge. Banks and financial institutes needed to maintain their customer rate, for which they took over to the software development practices for banking and finance, respectively. 84% of the bank executives believe that the presence of cloud technology in banking will transform its working and reputation for all good. Moreover, having bank-specific apps for real-time speed banking services and increased dependence on online communication have also reduced the use of paper-based banking. 

FaaS (finance-as-a-service) and BaaS (banking-as-a-service) platform

The Fintech and banking software services did evolve as FaaS and BaaS platforms to provide innovative app solutions and increase their market presence during the digital era. In FaaS, Fintech companies provide their APIs to other players of the finance industry for quickly creating the banking and finance-related apps featured with safety, reliability, and tested applications. Also, it has been reported that BaaS platforms will skyrocket their market size to $43.15 billion by 2026 globally.

Wrapping up

One thing is for sure. Going digital does safeguard the functioning of every type of organization against sudden pandemic hits. Therefore, to maintain a stable customer rate and ensure the real-time functioning of all the transactions, digital transformation in finance service is a must. The customer-centric Fintech approach is the only means to increase the customer base and provide the best digital banking services to the clients.

So if you are all geared to transform your banking or financial services into digital, choose the most reliable and technologically advanced Fintech app development company or Fintech software solution providers. For any assistance, in making the right choice, feel free to reach us, by leaving a comment below.

Also read about: How Digital Marketing Is Helping Businesses Retain Customers During the Pandemic

Jamie Joyner

Jamie Joyner is content cum digital marketer at Solution Analysts, a leading android app development company. She is an avid reader and likes to remain updated for technological advancements in the domains of web, mobility, IoT, and emerging technologies. Her articles are informative and interesting at the same time as he expresses insightful thoughts clearly.

View all posts by Jamie Joyner →

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