Over the past 10 years, the financial services industry has changed beyond recognition. The growing importance of digital technologies, both in financial services and in everyday life, is one of the key drivers of large-scale digitalization. The use of digitization has significantly changed the way financial institutions manage their businesses, interact with their customers, and control operations. Digitalization has not bypassed online platforms for borrowing money, because you can take out a loan without going to the bank in just a few minutes on the reliable and secure online platform Payday Depot.
1) Mobile Banking
The growth of mobile banking applications has been fueled by the widespread use of smartphones. Customers can now use their devices as mobile banking to track their accounts, make contactless payments, instant transfers, pay bills, and even invest. Mobile banking provides accessibility and convenience.
2) Digital Payments
Traditional cash payments are increasingly moving online. Digital currencies such as Bitcoin, contactless payments, and mobile wallets have become more common around the world over the past decade. To modernize payment systems, banks are also exploring the possibility of creating digital currencies. People are already accustomed to paying with one touch, so the financial market had to look for and actively implement alternative solutions: payment services and applications, payment by QR code, and biometric payments. One of the new trends in the financial sector is the QR code. This is a graphic image, which, when scanned, shows bank details, amount, and purpose of payment.
3) Artificial Intelligence and Machine Learning
Artificial Intelligence and machine learning are widely used by financial organizations to robotize internal processes, ensure security, detect fraud, assess risks, and build communication with customers through chatbots. The technology makes it possible to personalize financial services and, through recommendation systems, create tailored value propositions based on transaction data, information from social networks, and other sources. These technologies increase productivity and improve the customer experience.
4) Open APIs
Programming interfaces known as open APIs allow you to quickly and reliably send data to various businesses. They are used in the banking sector to allow banks to communicate with each other and fintech service providers. Open APIs allow small banks to use ready-made fintech solutions rather than waste time building their own technical services. The security of customer personal data is the fundamental principle of open APIs, which all market participants must adhere to. The user chooses what information to share, with which business, and for how long and has the right to withdraw consent at any time.
5) Digital financial assets
Another essential trend in the fintech market related to digitalization is digital financial assets. These are digital analogs of stocks and bonds, loans, and bills. Behind them are various real assets:
* metals
* gems
* oil
* real estate
* stock
* financial liabilities of corporations
A token is a digital financial assets unit, a special digital code containing all information about the owner, issue date, terms, and other obligations. The token allows you to significantly reduce the investment threshold, which makes digital investment funds accessible to a wider range of buyers.
