So much of the financial technology sector, or fintech, is about balancing convenience and security. Users want to take advantage of the latest fintech capabilities while remaining confident their data and finances are protected. Here are some of the latest fintech trends that are expanding the way we do business.
Blockchain
Also known as distributed ledger technology, many in the fintech sector see blockchain as a more reliable and transparent database. In theory, a blockchain allows someone to safely send money without an intermediary like a bank or financial services provider.
Put simply, a blockchain is a digital version of a traditional paper ledger, which records transactions with timestamps and annotations. By rigorously recording every transaction chronologically, a blockchain produces a robust digital log of the entire life cycle of money as it flows between hands. This can help reduce fraud and democratize money management.
The market size of blockchain use in financial services is projected to grow from approximately 2.5 billion USD in 2022 to over 22 billion USD in 2026.
Platform as a Service (PaaS)
As businesses continue to digitalize their finances, they will need to prioritize agility to meet changing demands and regulations. PaaS technology, which offers customizable infrastructure allowing users to fully adopt cloud platforms, provides the foundation for a wide range of tasks such as team communication, resource management, payment processing, and credit risk management.
By using PaaS, users avoid the expense and complexity of buying and managing software, application infrastructure, and middleware. The user simply manages the applications and services while the provider manages just about everything else. Users can now spend less time coding, add development capabilities without extra staff, support geographically distributed teams over the internet, and more.
It’s no surprise then that IDG estimates more than 60 per cent of companies are using PaaS.
Adaptive Machine-Learning
Artificial intelligence and machine learning can help lower loan default risk, inform risk management, discover operational efficiencies via data analytics, and improve client experiences. As such, over 40 per cent of businesses intend to use AI to acquire and onboard new customers, according to one source.
Using AI to detect fraud is one example of where businesses are seeing high ROI. A recent study revealed customers and businesses lost a total of $56 billion in 2020 to fraud. By quickly analyzing large datasets, AI can detect suspicious activity before the fraud even happens, blocking a flagged user’s request or accessing their account.
We Have the Tools
With SHEA, your financial systems will align firmly with your strategic business direction. We have expertise in financial software like Dynamics 365 and cloud computing services like Azure. Whatever your financial technology needs, we will work with you to realize the maximum value of your investment.
Visit our website today to learn more about leveraging our services.