For the last twenty years, major changes have happened in the fintech market. At the beginning of the 21st century, to become a user, the average person had to possess several credit cards and a bank account with a considerable amount of money.
But now, when Fintech 2.0 is entering our world, the average user is from the middle or working class and just uses a digital wallet as a basic way to control finances.
What changes are ahead of us? Read on to find out what leading experts think. We are going to tell you about the five most significant predictions of what lies ahead for the fintech market.
Half of Existing Huge Economics Will Use CBDC
CBDC stands for central bank digital currency. It is envisioned by most to be a new form of central bank money that is different from balances in traditional reserve or settlement accounts. The term has not been well defined yet.
Transactions will be even faster, safer, and easier with the help of crypto. The CBDC unit is a unique digital code or token issued by the central bank. This governmental currency will help avoid third parties. The algorithm of producing new digital currencies will be more well elaborated. Some developing countries may issue their own tokens based on Bitcoin or Ethereum.
Cloud Economics Will Prevail
The global pandemic has heavily influenced creditors’ organizations. Those who use the centralized system and mainframe are now complaining about the tech debt. Tech cloud technologies seem to be the quick and efficient way out of this situation. Having spread the new Open API, American banks have just implemented other methods to simplify the process.
End-to-End Algorithms and Digital Footprint Monitoring Will Be Used by 20% of Retailers
With the help of new cross-platforms algorithms, new payment and lending services can become more effective. Thanks to AI, the algorithms will be able to understand the context and predict what a customer may want to buy. Online retail will increase by 70% during the next five years.
Smart Solutions for Platforms Will Help Reorganize Business
Big databases must be improved; that goes without saying. Information should be not only collected but also classified and analyzed. More and more companies nowadays are trying to use Good Data or Smart Data services to improve the quality of data management.
1/3 of the Most Profitable Businesses Will Be in the Fintech Sphere
The digitalization of the economy has significantly strengthened the position of financial technologies and made them the most popular technologies. Now, this is not a “nice-to-have” but a “must-have ” — an organic component of the B2C and B2B segments.
In a Few Words
To summarize everything mentioned above, we would recommend staying tuned and following the new changes to get as much benefit as possible from the new digital-native infrastructure.
The cloud and decentralized architecture, combined with more productive APIs, will provide another fintech revolution predicted by few but experienced by many. Ecosystems will help implement these innovations.