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Tags: fintech | financial technology | trends | credit repair | artificial intelligence

The 4 Big FinTech Trends of the Year

The 4 Big FinTech Trends of the Year
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Larry Alton By Monday, 11 September 2017 03:12 PM Current | Bio | Archive

When it comes to innovation, the FinTech industry is always ripe for the picking — and this year has been no different. As we dive into the second half of 2017, experts are expecting some even more exciting developments to emerge.

FinTech Trends Worth Watching

Study the technology space right now and you’ll probably notice that a lot of energy and financial resources are being poured into financial technology — i.e. FinTech. There’s a lot of anticipated growth in this niche and businesses are hoping to increase their market share. Specifically, we’re seeing the development of some of the following trends:

1. Advanced Credit Repair Technology

One area that’s getting a lot of attention right now is credit repair. American credit scores are, on average, pretty poor, which is leading millions to pursue solutions like credit repair. The problem is that credit repair can sometimes be a meticulous process that requires a lot of manual effort. Things are changing, though.

Many of today’s leading businesses — like Lexington Law — are using advanced, automated tools that identify credit report mistakes and ultimately allow for errors to be removed in a more efficient manner than ever before.

Last year alone, Lexington Law helped clients remove more than 9 million negative items from their credit reports. This wouldn’t have been possible without advanced technology.

2. Growing Focus on Artificial Intelligence

We’re also seeing a growing focus on artificial intelligence. While this certainly isn’t exclusive to the FinTech industry, the potential is great here.

One of the biggest anticipated developments is the use of predictive analytics to make use of all of the data financial firms are currently collecting. As predictive analytics platforms improve, big data will become even more powerful and influential. We’ll also see better user-side experiences with financial products, which will lead to greater customer satisfaction and retention rates for businesses.

3. Biometric Security

In the face of increased mobile and card-not-present transactions, we’re already seeing an increase in identity fraud. This indicates a need for greater security; FinTech companies are responding with an increased reliance on biometric security.

Biometric security once involved the use of fingerprints, but today’s hostile environment now calls for multi-step security in order to be as safe as possible. This is leading to the use of facial recognition software and even iris scans. While companies and individuals may initially see these technologies as cumbersome, the added layer of protection they provide will ultimately prove valueable and foster positive change.

4. Emergence of Challenger Banks

If there’s one thing we know about Millennials, it’s that they’re okay with bucking the traditional way of doing things in order to make something more convenient. In the world of finance, they’ve shown an affinity for online banking and “challenger banks.”

“Most big banks are saddled with legacy systems and old data sets and need to re-engineer their database structures. Challenger banks are able to avoid those constraints and use FinTech innovation from the beginning,” Thomson Reuters explains. “This allows them to be more customer-focused, offer services more quickly and package those services differently.”

On a related note, there’s been a massive increase in the use of virtual wallets and alternative forms of payment. These two trends go hand-in-hand and will support each other.

Exciting Innovation Awaits

As the economy continues to improve and areas like ecommerce and virtual payments grow, technology is expected to advance right alongside.

In this article, we’ve analyzed just a few of the top trends of the year. As 2017 comes to a close, we’ll get a better picture of what’s happening and start to identify some of the new trends coming down the pipeline in 2018.

Larry Alton is a professional blogger, writer, and researcher. A graduate of Iowa State University, he's now a full-time freelance writer and business consultant. Currently, Larry writes for Entrepreneur.com, Inc.com, and Forbes.com, among others. In addition to journalism, technical writing and in-depth research, he’s also active in his community and spends weekends volunteering with a local non-profit literacy organization and rock climbing. Follow him on Twitter (@LarryAlton3), at LinkedIn.com/in/larryalton, and on his website, LarryAlton.com. To read more of his reports — Click Here Now.

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When it comes to innovation, the FinTech industry is always ripe for the picking — and this year has been no different.
fintech, financial technology, trends, credit repair, artificial intelligence
Monday, 11 September 2017 03:12 PM
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