Fintech Trends to Look Out For in the Near Future


We are heading towards game-changing technologies as the future is centred around digitalization, which will have a tremendous effect on both security and transparency.

People are getting more comfortable with managing their money and business online. Most people have mobile banking apps while others have at least one app that does payments.

From taxes to finance, you can get whatever you want anytime you want thanks to mobile and cloud computing.

fintech trends in Nigeria

Fintech trends to look out for in the near future

The following are the fintech trends to look out for in the near future;
  1. Blockchain technology
  2. Artificial Intelligence, Machine Learning & Chatbots
  3. Increased mobile transactions
  4. Bank & Fintech companies collaborations
  5. An increase in digital wallets usage
  6. More people going cashless


1. Blockchain Technology

Blockchain technology is an incorruptible digital ledger where users store valuables documents, investments, financial transactions etc. for total safety.

Fintech companies using Blockchain will benefit in these ways:
  • 100% security: Blockchain can never be hacked. To hack blockchain, you would need to have the electric power equivalent to about 2.26 million American homes because you won’t be hacking one but thousands of linked networks.
  • Transparency: Blockchain allows banks to create digital ledgers that record transactions in real time with accessibility to everyone within the community boosting the overall efficiency of transactions because banks can now easily know where money is coming from and where it’s going.
  • Improved Customer Experience: The entire process is transparent and visible to everyone including stakeholders/customers.
  • Increased lending: Bank Settlements can take two or three days. Blockchain compresses the steps into one step that can be done within a few seconds or minutes
  • Blockchain cuts costs all around: When it comes to P2P, blockchain cuts out costs of the standard marketplace by 95 per cent. There are no chargebacks and refunds, no postal and shipping losses, no subscription charges, seller fees, referral fees etc.
  • Blockchain has the biggest impact in the finance world: “Blockchain-based securities trading will reduce costs, minimize complexity, and increase the speed of trading and settlement processes. Blockchain-based P2P and SME lending platforms will help financial institutions scale easier and more efficiently. Cross-border payments and mobile payments will become cheaper and easier.”

2. Artificial Intelligence, Machine Learning & Chatbots

Artificial intelligence (AI) refers to computerized algorithms that replicate the processes of human cognition.

Machine learning (ML) gathers all that information and kicks off predictions.

Chatbots are computer programs or an artificial intelligence which conducts a conversation via auditory or textual methods.

Some Nigerian brands, companies and start-ups are already using chatbots to improve their customer experience and to sell their products or services. Here are some of the chatbots we have in the financial sector;
  • The United Bank for Africa (UBA) recently launched UBA Leo, an AI-powered Facebook Messenger bot, to allow users to perform banking transactions.
  • Diamond Bank launched ADA, Artificially  Intelligent (AI) Chatbot, leveraging pioneering technology to reach more customers with an enhanced service in Nigeria.
  • GTBank is giving customers access to customer service, airtime purchase and Bank 737 shortcodes using Facebook Messenger.
  • Kiakia is using Mr. K, a virtual assistant, to give an interactive user experience in accessing loans. Mr. K also assists users in resolving a couple of issues on the platform — taking away the need of putting a call through for every complaint.
  • NairaBot gives the prevailing foreign exchange rates at any given time. You just add a command and it responds according to your request in seconds.
  • With Kudi, you can purchase mobile airtime, transfer money and pay for TV bills via chat using Messenger, Skype, Telegram or a web browser.
  • NebulaPay allows you to pay bills and transfer funds from the Facebook messenger.

In the coming years, more financial companies will use Machine Learning algorithms to gain a competitive edge in the following ways:
  • To detect fraudulent activities and vulnerable spots in their software
  • To automate financial reporting
  • To minimize processing time and human error
  • To execute Analytics/ A/B testing.
  • The lines between AI and ML will blur, with companies combining both to offer predictive advice to clients on how they should, for instance, manage their finances.

3. Increased Mobile Transactions

Sending and receiving money has become easier than ever. All you need is a smartphone, and individuals can receive their funds anywhere in the world instantly with mobile banking apps, Payment platforms apps.

More recently, Facebook paired with PayPal to help people outside the U.S. send and receive small amounts of money.

Another trend in the mobile sphere is using smartphones to make payments at stores instead of a debit or credit card. A survey was conducted by Business Insider and it was discovered that “71 per cent of millennials say it’s very important to have a banking app and 60 per cent say it’s very important to have an app to make payments.”

4. Bank & Fintech companies collaborations

We would inevitably see both bank and fintech companies working together.

Banks do not look at fintech companies as disruptors anymore. Today, they are more like partners that pair up to take on the challenges of a new digital. This integration combines the strengths of both – the administration of fintech with the strength and reach of traditional banking.

5. An increase in Digital Wallets Usage

Every bank in Nigeria has a digital wallet for their customers who have granted consumers with a quick, easy and portable way to shop and spend. 

In the near future, we will likely see the development of digital wallets that will also make an impact on the international payments scene, allowing consumers to buy, use and reconvert foreign currency.

More blockchain wallets apps will be created allowing consumers to instantly transfer and exchange cryptocurrencies while remaining incognito.

6. More people would go Cashless

Game-changing digitalization technologies being introduced means the reduction in paper, cash and for the future, the less paper the better.

More people are most likely going to sign up for digitalization and finally go cashless because they can finally see the benefits of going cashless.

Going cashless is certainly the hype now and with blockchain technology, you can fully go cashless or paperless with no fear.

TechAdvance

TechAdvance is a payment application development company with a strategic focus in developing and deploying niche payment companies to serve the needs of large public and private sector organisations in Nigeria.

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