Top 5 banking and fintech trends to watch out for in 2021

The pandemic has accelerated the advancement of digital banking and Fintech. As the demand for digital finance solutions has skyrocketed, some new banking and fintech trends are emerging. Technology is helping speed up improvements in the finance world, just as it is in other industries.

If you are in the finance industry or are curious to learn about what to expect from 2021, you have come to the right place. This post takes a close look at the top 5 banking and Fintech trends for this year.

Each trend will inform you about what to expect. So, what are you waiting for? Let’s dive in.

1. Micro-Services

One of the hottest banking and Fintech trends for 2021 is micro-services. They are helping power the Fintech revolution. Without micro-services, it would not be possible for the Fintech industry to grow and compete with the existing financial services. 

One of the hottest banking and Fintech trends for 2021 is micro-services

The thing about micro-services is that they help provide Fintech with the flexibility required to create groundbreaking, innovative technology. This flexibility provides the industry with much-needed agility to adapt to competitive forces and changing circumstances.

Micro-services are expected to make it big because they help address common issues such as scalability and speed. They also support continuous delivery and testing. Their responsiveness and agility enable the industry to provide customers with the best experience.

2. Artificial Intelligence and Machine Learning

Another banking and Fintech trend that you need to know is artificial intelligence and machine learning. Many services, such as digital marketing services, have benefited from AI and MI. Hence, it is about time that the finance sector followed suit.

From regulatory technology to robot-advisers, AI/ ML systems enable companies to better monitor customer behavior and detect opportunities and anomalies. The financial players of the future, like Fintech companies, would rely on data scalability.

Many services, such as digital marketing services, have benefited from AI and MI

Unlike traditional banks that treat customers as an aggregate, Fintech companies provide a highly customized, personalized service by combining technology and human skills in the best way possible.

3. Decentralized Finance

A trend that has been gaining traction is decentralized finance. It focuses on using emerging technology for revolutionizing the industry. The main purpose of decentralized finance is to find favor. It operates outside the stereotypical financial structure to provide out-of-the-box solutions. 

With decentralized finance, intermediaries are eliminated, and finance is effectively democratized for the majority. Since a huge percentage of the population does not have access to finance, decentralized finance aims to bring a change and make financing accessible.

A trend that has been gaining traction is decentralized finance

The best thing about decentralized finance is that it operates outside the stringent financial framework. It provides financial services to the masses by removing investment, payment, and bank intermediaries. Instead, it replaces these with services that are powered by a blockchain network.      

Blockchain provides an effective alternative. It will continue to disrupt the financial ecosystem to ensure security and transparency while removing the reliance on established financial service providers. Blockchain relies on smart tokens and contracts to act as the digital middlemen needed to transfer money.

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