Fintech is the word that refers to financial technology. There are many fintech companies available worldwide, and these companies provide financial services for their customers with the help of the latest technology. The future of fintech companies depends on the latest and upcoming technologies available today. Most people prefer digital marketing, so it is necessary to improve the usage of technologies in finance.
The involvement of new technologies in the financial field is high, and these technologies improve the processing techniques and workflow. Most mobile payments, banking, cryptocurrency & Blockchain, digital lending & credit, and trading come under fintech industries. These companies depend on the latest technologies that move the entire financial field to its nest level.
5 Top technologies that shape the future of the fintech industry
Many different technologies are in use, but these five technologies are essential once among all other technologies. Its because the contribution of these technologies is more to the fintech companies than the other technologies those helpful technologies that shape the future of the fintech industry are
- Artificial intelligence
- Cloud computing
All these are the technologies that help improve financial technology companies that need lots of help from all these technologies. These are the technologies that determine and create the future of fintech companies.
These Ai applications will enter all sorts of operations of financial industries. These applications will improve the features and abilities of the customer-facing applications to understand the needs and requirements of the customers. These Ai applications play an essential role in the bank industry because they use these AI in digital operations. All these are the abilities of AI in the financial technology field.
Blockchain uses various technologies like Distributed Ledger Technologies, which help store and record different data in multiple data storages, providing synchronized and shared access to many people at a time. Many products like digital wallets, digital assets, non-fungible tokens, and decentralized finance are from key technologies like smart contracts, zero-knowledge proof, and distributed data storage. These are the uses of blockchain technology in the field of financial technology.
Suppose the companies use these cloud computing technology effectively. In that case, they can improve the functional ability of the migrated app development, and it also helps strengthen the maintenance percentage by 30%. It also helps to improve several components like infrastructure cost and downtime of migrated applications. The financial industries should know about various forms of clouds like public cloud, private, and hybrid cloud. In the public cloud, the infrastructure is with the service provider of cloud computing. The private clouds are for individual customers, and the hybrid combines private and public.
Internet of Things
This technology comprises wireless communication systems, preception and intelligent sensor systems, and operations and application support. The involvement of this technology in the financial field will increase the communication features with or without wire connections, and it also improves the relationship with customers. All these are the features that are helpful in financial technology.
Like open-source software and serverless architectures and the SaaS, also known as software-as-a-service, this technology is the essential part and future of fintech companies that launch new businesses. Saas help these kinds of companies to use software without owning them, and with the help of serverless architecture, they don’t need firms to run their servers. These are the features that are available with this open-source technology.
Why fintech is the future?
According to the latest news, fintech companies gain a considerable amount of new revenue at the cost of ordinary banks. There are 2100 fintech companies available in India, and it also increases gradually. People like to move towards luxury, and they think these digital forms of finance will help them move towards luxury. And the investment level for this segment is more in the last few years, making people think that these fintech companies are the future.
How big is the fintech industry?
In 2018 the net worth of the global fintech market was $127.66 billion, with a growth rate of about 25% till now. And now, the total value of the fintech companies is about $309.98 billion. These price value themselves explains the size of the fintech industry. All these values explain the global market situation, and it increases and decreases as per the performance of each county. As the needs of people improve, the size of fintech companies is growing as per requirements to supply the demand.
In India, the net value of fintech industries in 2020 is about $50-60 billion, and by the year 2025, the net worth is estimated to reach about $150 billion. And it may also be more than the estimated value because the demand among people also increases daily, which is the main factor necessary for the future of fintech companies. All these features and information will explain the size of the fintech industries in India and even worldwide.
How many fintech companies are there globally?
There are 26,000 fintech companies available in the year 2021. It isn’t easy to find the approximate count of the companies because many new startups are rising every year, and some are withdrawing themselves. In the UK, in the year 2020, the count of fintech companies was 8,775, and now they reached 60%, with new fintech companies as startups which increase the count at the world level. So, these are the count of fintech companies worldwide.
Fintech companies are the essential industry that helps improve the financial practices that take a long time and energy to complete. These fintech companies are the key that helps improve the finance sector’s future in various ways. Now every person in the world knows about digital payments and wallets, which is the most significant victory for the fintech industry. Similarly, new features and applications are available with these fintech companies, and the future of fintech lies in the hands of those technologies that improve the financial world.