For years, the financial services industry has lagged behind when it comes to the adoption of new technologies. But, thanks to tech-savvy solutions like ours, this is changing.
As a business, you must stay up to date with the latest technologies in order to keep on top of the competition. Today, we’re exploring a few of the latest FinTech trends and considering how they might transform your business, regardless of the industry you operate in.
1. Buy Now, Pay Later
Thanks to its ability to cater to our need for instant gratification (without the instant bill), Buy Now Pay Later (BNPL) lending has become one of the most popular payment methods available. With a huge rise in the number of lenders available, BNPL purchases in the UK quadrupled in 2020, with over £2.7bn in transactions made in just one year. The API-based infrastructure that underpins these lenders has been rapidly developing, allowing more businesses to adopt white-labeled APIs for their own lending products.
So what does this mean for your business? Well, if you are not already offering buy now pay later options for your customers, it could be time to consider it. After all, we are far more likely to buy something if we know we won’t see all the money disappear from our bank account straight away. This is particularly prevalent for products and services with a higher price range, in which case the introduction of a BNPL option could boost your sales instantly.
2. Dependence On Intelligent Technologies
As experts expand and develop the capabilities of intelligent technologies, including artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA), businesses are becoming increasingly reliant on them. From traditional banks testing the introduction of robo-advisors, to the use of algorithms to automatically assess a customer’s credit score, these technologies are creeping in throughout the financial services industry.
As a business, you could stand to benefit from this in several ways. Firstly, automated risk management modeling can help you to prepare for potential threats to your business, rather than reacting when the threats occur. Secondly, faster and more reliable data collection and analysis could help your business to learn more from your previous transactions, providing a consistent feed of improvements to apply to future processes. Finally, improved virtual customer assistants and automated messaging systems can provide faster and more efficient customer service support, saving you time and money and keeping your customers happy.
3. Platform as a Service (PaaS) Expansion
It has been said a thousand times but, since the global pandemic, the way we live and work has been changed forever. As our workplace has become increasingly flexible, we have become more reliant on the Cloud than ever before. Enter the PaaS revolution. A Platform-as-a-Service (PaaS) is a service through which a customer can purchase cloud-based infrastructure, applications, and/or software for their business. Due to its ability to help us transition to home and flexible working practices, PaaS use is very much on the rise.
4. Crypto and Blockchain
The finance industry might have been a little slow in its uptake of blockchain technology, but it is certainly taking off now. Beyond the adoption of cryptocurrency to fund and/or operate businesses, the industry is finally starting to make use of blockchains many potential benefits.
It is easy to see why, too. Blockchain’s use in digital identity management can provide additional layers of security for both businesses and their consumers, helping to keep their data safe. Blockchain will also provide better integration within the Internet of Things (IoT), helping to generate more efficient and better-connected businesses, as well as decreasing fraud, reducing regulatory concerns and limiting costly process mistakes.
5. Hybrid Solutions
As the adoption of financial technologies increases, so does the industry’s reliance on technology. Whilst the benefits certainly do outweigh the risks, there are some issues surrounding FinTech adoption that should always be considered, specifically around data privacy and lack of regulation.
At Aventur, we combine some of the most advanced financial technology with the experience of our expert financial planners to form a unique hybrid solution. Our “best of both worlds” approach puts us head and shoulders above our competitors in terms of capabilities, cost, and customer satisfaction.
Get in touch to find out more about how we can help your business thrive.