Five Fintech Trends that Are Revolutionizing the Financial Sector

Fintech companies are continually redefining how asset management products and services are designed, distributed and generated. Not only do they offer effective solutions, but they are also evidence of how innovation can redefine business. Therefore, we invite you to discover some of the fintech trends that are setting the pace right now.

Read more about the most important fintech trends that will shape the future of the financial world and find the latest financial news of the day with our companion app Born2Invest.

1.Loaning: automated credit analysis

Innovation in the loan granting system has become a must among fintech companies. Made through algorithms and data analysis, credit decisions are unbiased and made based on your history and financial capacity.

Fintech lending democratizes access to credit while perfecting the system to avoid errors . In an increasingly digitalized world, it is presented as a fundamental piece in the constant financial evolution that we are witnessing.

In this sense, the renowned consulting firm McKinsey&Company assures that digital loan transformations reduced costs and improved risk decisions. In addition, the time spent making loan decisions was reduced by 30-50%.

2.Increased Personalization: optimizing the experience

The growing search for personalization is another trend that is shaping the current financial landscape. The objective? Use a variety of artificial intelligence and machine learning techniques to personalize financial management, such as digital wallets and related platforms .

Since the financial world is constantly evolving, adaptability becomes a critical factor. In this sense, new technologies allow fintech companies to offer personalized customer service with faster and more efficient responses to user needs.

However, it is worth noting that the digitalization of processes has its own challenges, such as the increase in scammers and fraud. For this reason, it is essential to have teams of experts who are capable of detecting and preventing these types of incidents.

3.Embedded Finance and Payment Innovations: the integration of digital interfaces in everyday use

The concept of integrated finance involves incorporating financial products into everyday customer experiences and platforms . That is, the integration of everyday digital interfaces, such as digital wallets, online shopping platforms and accounting software , among others. In particular, digital payment solutions are playing a crucial role in the way people engage with financial institutions.

The case of Argentina

For its part, the Global Payments Report 2023 from Worldpay from FIS highlights that Argentina is ranked number three of the largest e-commerce markets in Latin America . According to the report, growth was boosted by mobile phone operations, which represented 60% of the value of e-commerce transactions in 2022.

The FIS report highlights that a notable increase in electronic commerce in Argentina is projected, going from 19 billion dollars in 2022 to 41 billion dollars in 2026. This growth positions the country with the fastest growth rate among 40 nations worldwide.

Regarding payment trends, the Global Payments Report 2023 shows that in 2022 in Argentina, credit cards led payment preferences with 36% participation, followed by debit cards with 18%.

The transformation of decision making in the financial field is constantly evolving

4.Advanced decision making: improvement in decision making

The transformation of decision making in the financial field is constantly evolving. But how do we automate the combination of metrics and monitoring to mitigate risks and optimize results?

The best solution is through robo-advisors , digital platforms that, through algorithms, offer automated fund portfolios with low costs, limited human supervision , and that also guarantee easy investments . This is because robo-advisors are based on risk profiles and automated processes that reduce operational risks, thus contributing to improving investment decision-making.

5.Cybersecurity: the deployment of cybersecurity systems

With the digitalization of financial services, the probability of suffering from cybercrime increases . That is why fintech companies require the deployment of a cybersecurity system appropriate to this problem. In this sense, it is key that users can be aware of any activity in their accounts.

Fintech trends: Towards the financial revolution

The financial world continues to advance and it is essential to be aware of new fintech trends to accompany growth. Ultimately, it is these trends that will shape the financial future.

Cutting-edge technologies are driving the fintech sector and demand expert and experienced professionals. That is, trained people who can face the challenges that arise with quick, creative and successful solutions.

Collaboration between companies, experts and consumers will be essential to make the most of these innovations and ensure a more inclusive, efficient and personalized financial future.

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(Featured image by Towfiqu barbhuiya via Unsplash)

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First published in infobae. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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