Aside from improving access, technology has also caused a slew of significant changes in financial institutions around the world, entire upturning industries in certain cases, as in the case of mobile investment apps and stockbrokers
FREMONT, CA: From the advent of the abacus to make financial calculations easier to the huge supercomputers that are used to drive complicated financial models today, technology and finance have always been inextricably linked. As a result of that merger, the fintech industry arose, and the majority of financial activity is now carried out on mobile phones, allowing more people to get access to financial services.
Aside from improving access, technology has also caused a slew of significant changes in financial institutions around the world, entire upturning industries in certain cases, as in the case of mobile investment apps and stockbrokers. The fintech revolution, on the other hand, is ongoing, and the following are some of the most important themes that will influence the future of finance, led by astute entrepreneurs.
Security
As financial services have evolved away from face-to-face encounters and toward remote interactions, one of the primary concerns that all stakeholders have had to address is security. Cybercrime has risen at an alarming rate, and ransomware payments are gradually becoming a routine operating expense for many businesses.
To fight this, there is a growing emphasis on biometric solutions as a means of ensuring the highest levels of security possible because biometric markers cannot be simply copied or hacked. Fingerprints have long been the standard, but public health concerns are turning their focus to contactless biometrics identification solutions.
Cryptocurrency Adoption
Far from being on the periphery in the early days, cryptocurrencies saw increased adoption among mainstream financial services firms in 2020. For example, PayPal announced in November that it would begin allowing all US-based users to buy, hold, and sell cryptocurrencies on its platform.
As more individuals start using cryptocurrencies, more businesses will start accepting them. Because cryptocurrencies are not without flaws, the market will reward companies that can find solutions to those flaws.
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