Market Data Forecasts predicts that the global fintech market will grow from $209.7 billion to $644.6 billion by 2029. They mention blockchain, generative ai technologies, digital payments, and other advanced technologies that might influence this growth. Financial technology (fintech) has changed drastically over the years, and the change is actually impacting the entire world. From digital payments to blockchain, it has innovated tools and software that were once unimaginable.
However, as the industry transformed and transitioned, people also adapted to the changes over time. Even though blockchain and cryptocurrencies haven’t been integrated into people’s lives in the most ordinary way, it would have been the case for digital payment at the initial stage.
Anyway, let’s go through some top fintech innovations that you should stay on the lookout for.
Mobile-only banking (neobanks)
We can already predict to some extent how ai and automation will shape finance in the future. While it’s interesting to see several changes in the finance sector due to it, we should also be mindful of the innovations that might get added to the ecosystem. One such innovation is mobile-only banking (neobanks).
It’s a transformative force that has set a new standard in the industry, neobanks, such as
Nubank, Monzo, and Chime are some of the choices. Neobank Financial Institute offers banking services, including management of credit and debit cards, investments, loans, checking and saving accounts, and budgeting tools through mobile platforms.
This is expected to grow and benefit the underserved markets. According to Fortune Business Insights, it’s predicted that the neobanks will increase at a CAGR of 46.5% from 2020 to 2026.
Real-time payments
When dealing with real-time payment, we can get rid of additional costs and initiate domestic transactions instantly. These key benefits support emerging and developed markets. Mainly in countries, such as Singapore, the UK, and Australia, real-time payments through wallets and banking apps have been mostly replaced with cash and checks. These changes also impact the future of finance careers.
There’s a solid impact in emerging markets, such as India. India’s Unified Payment Interface (UPI) emphasizes the importance of this transformation. There has been a surge in transactions from 1 million to 83.7 billion from 2016-2023, 75% of them being digital payments.
Blockchain and IoT
Blockchain solutions and the future of finance are other areas you should be on the lookout for. These groundbreaking concepts have influenced the industry, creating the need for people to adapt. This shows that there is a possibility for ai and next-generation automation too in the fintech industry. These have the power to reimagine the use of finance.
Even if generative artificial intelligence models don’t become a thing of now, they might become something that the future of finance holds. However, the blockchain and IoT display a promising future, with decentralized finance (DeFi) and asset management.
The major focus is to enhance security, transparency, and efficiency through these innovations, creating a more advanced industry for finance.