Fintech has become the umbrella term for technological infrastructure in the liquidation of fund assets in the capital markets, payment processing, modern digital payment lanes, and such applications of hardware and software. The last two decades especially have seen many fintech entrepreneurs innovate and fill the gap for effective, fast and cheap solutions in wealth and financial transaction processing.
Agile entrepreneurs now find they can create space for greater innovation based on blockchains which itself is one of the biggest trends in the financial and technological developments of the last decade discovered through the emergence of cryptocurrencies. Here are the top four trends that can create space for greater innovation directed at rewiring the Fintech industry’s innards. No particular order of importance is present in evaluating these trends which are all equal and depend on how each one is exploited for maximum gains.
1. Quantum computing
The binary code based of modern computers interprets as zeros and ones where the binary digit is reflective of a deactivated or activated binary state. Quantum computers use this as a basis which takes advantage of quantum-phenomena such as superposition and quantum entanglement to turn performance levels into super- or quantum computing thus transforming costs, performance and lower energy utilization costs.
Modern times and developments are using quantum computing to help with risk and performance modeling, processing and settlement of transactions, better security and faster data processing. IBM's quantum computing tools are being used by Barclays and JP Morgan according to Cabling.
2. Artificial intelligence.
Robotics and AI are doing repeatable tasks better than the humans with technological advancements resulting in faster processing, better user experience and lower overall costs. AI and advanced quantum computing technologies have the potential to minimize the costs of advisors and vendors in the financial industry. Technology will develop and continue to optimize information access while reducing costs and providing better returns and more effective programs.
Pacific Wealth Solutions uses AI and quantitative computing to monitor and analyze investments in wealth management, insurance, etc with excellent ROIs and solid returns. AI also offers a very practical Regtech tool to manage risks in the portfolio while taking care of regulatory compliance. AI has tremendous scope for improvement in the fintech industry where recent developments like blockchains are being used in tandem for faster, more transparent, decentralized financial transactions at little or no fees.
3. Cryptocurrency, blockchains and decentralized financing.
DeFi-Decentralized financing was ushered in by the blockchains and cryptocurrency entry. The open protocols worked well for MakerDAO on an Ethereum platform, when selling the Dai decentralized loans and the Nexus Mutual insurance product as an alternative to slow traditional banking and dealing with financial institutions.
Consensys, Chargezoom, TomoChain, and Stably are exceptional performers who have been successful in using applications that are decentralized, zero-fee, blockchain-enabled and transparent alternatives to traditional finance technology. Stablecoins akin to cryptocurrency are not volatile and are smart answers to everything between the margin loans and smart custody. Even Facebook intends to introduce its own stablecoin that can be used for trading for goods on e-commerce platforms and brick-mortar establishments too.
4. Payments platforms:
Fintech trends prove that the platforms of payments processing are the buzzing trend of their foray into the financial sector. We have smartphone users preferring one-click payments on Google Pay, Apple Pay, and Samsung Pay. States The New York Times, Facebook is planning to come out with a coin. Integrate this with the e-commerce stores like Alibaba, Flipkart, and such and the Shop in Instagram feature and there can be no doubt that such platforms are here to stay. The banks are not taking things lying down and are looking to upgrade at the earliest to derail the foray of private players in the banking sector which has held control over this field for long.
Whether you are an entrepreneur or a career seeker, Fintech is the answer to being technologically abreast of developments in an evolving and financially satisfactory career. If you want to exploit the advantages of open finance, quantum computing, AI tools, then the fintech industry is at disrupting. Do a Fintech Course and blockchain technology at the Imartcus Learning Institute to emerge career ready. Start your dream career today!