Fintech trends are shaping the future of the finance industry, and the value of the worldwide fintech mobile app market is going to reach $305B by 2025. It’s a great jump compared to 2010 when the market value was only $11 million.
This difference has created excitement among young fintech startups and developers building software for them. Top fintech speakers are also highlighting these changes and sharing insights into the industry’s growth.
Today, a lot of fintech apps are already a hit in the market. However, several new trends are being introduced so rapidly, making the competition tougher.
Today, in this blog, we’ll know some emerging trends in the fintech industry. But before that, let’s learn a bit about Fintech.
What is Fintech?
Fintech, as the name suggests, is the combination of finance and technology. The fintech industry includes all software, technology, or apps that make the most profitable use of technology to encourage finance in more forms than one. Fintech apps are utilized for various functions.
This includes cross-platform integrations, biometric authentication, analytics & data visualization, multiple payment gateways, multi-user collaboration, etc.
9 FinTech Trends for 2025 and Beyond
Fintech software development services can give you the best outcomes only if you use the latest fintech trends, so here are some of the major ones:
a. Embedded Finance
As the name indicates, embedded finance integrates financial solutions like insurance, lending, and payment processing into existing non-financial apps and OS. The search volume related to the word’ embedded finance’ has arisen.
This is because organizations are gradually but certainly discovering the advantages of the digital revolutionization of fintech systems.
Businesses should be conscious of precise types of embedded finance. The report of Exploding Topics shows the embedded fintech market size is estimated at $63.2B and is supposed to grow to over $248B by 2032.
b. Neo Banks
A neobank is a type of direct bank that operates only through the Internet and does not have any of the traditional networks of banks.
A neobank is a breed of a new generation bank that has no physical branch and is purely Internet based. Such banks offer mobile-led financial services for payments, remittances, credit, and many more.
In addition, these banks also enable users to deposit funds, withdraw cash, and, in fact, offer relations of a series of loans and lending as well. This implies that the services are just very much the same as what traditional banks offer.
Supermarkets would be a great help to Neo banks but getting banking service help is not possible because they all lack a banking license so standalone operations are impossible.
c. Regtech Solutions
Regtech solutions are a subset of fintech solutions that help manage various regulatory processes through the use of technology. The major functions of such solutions are monitoring, reporting and enforcing regulations.
RegTech applies mainly to the technological control of regulating processes especially in the finance sector. Such processes may take several forms such as regulatory monitoring, compliance, and reporting.
RegTech encompasses organizations that provide regulatory compliance services to businesses by using cloud computing technology through software as a service. This however is referred to as regulatory technology.
d. Robotic Process Automation
RPA is an abbreviation for Robotic Process Automation. Today RPA is improving operational performance. This involves the use of software programs that perform certain actions of humans such as navigating through systems, retrieving and manipulating data, and carrying out routine functions.
It provides high cost benefits and high efficiency over the traditional methods. RPA in the past few years has grown at the rate of 63% and has become an indispensable asset for organizations seeking to improve their workflows and reduce operational costs.
e. CBDCs
Central bank digital currencies or CBDCs refer to the digital forms of a country’s fiat currency that are issued and regulated by the central bank of that respective country.
CBDCs, unlike the often expensive and unstable assets that are cryptocurrencies, are very stable and are now gaining popularity as the best means of making payments even online.
As for the enterprises, they can employ CBDCs as a payment method that is fast, safe, and within the regulatory framework, mitigating the risks posed by virtual currencies while also allowing efficient and quick global payments.
f. Buy Now, Pay Later (BNPL)
Buy Now, Pay Later (BNPL) is a financing product that allows a consumer to purchase an item and repay it through several smaller payments, which are known as installments. However, BNPL services are typically more user-friendly and easier to avail as compared to other credit products, owing to the very low or zero interest rates applicable to them.
The BNPL sector, however, has expanded at a rapid pace, reaching a market size of 120 billion dollars in a two-year period. This growth curve presents new avenues for businesses in increasing sales and customer satisfaction via flexible payment alternatives.
g. Digital Identity Verification
With the advent of technology, biometric recognition systems, multiple levels of identification and encryption, digital identity verification has become foundational in the security of financial institutions and businesses. These measures help in preventing fraud, hacking or trespassing, thus such measures can be employed to secure monetary exchanges.
Managing a digital identity is secure and less hassle compared to the use of physical identification cards. As a result, businesses will be able to protect risk prone client data without risking a decline in the quality of service offered.
h. Artificial Intelligence
This application of artificial intelligence is different from what we know, as the transformation of the finance industry where there are end to end automation processes, enhancement of services provision to customers and putting information at the center of all processes.
AI technologies come in different variations such as – intelligent virtual assistants, fraud detection platforms, and analytical systems.
Use these simple measures, cut off unnecessary spending and save hundreds of dollars daily for the emerging Decacorn businesses. As a consequence, Ai expectations increase leading to more development within the industry hence the changes witnessed.
Key Takeaways on Fintech Trends
Present-day society has placed the use of financial technology, or fintech, as one of the most significant and expanding areas of interest.
With the current trends in software development and financial solutions spearheading the way from neobanks, RPA, AI aspirations, and even digital ID verification systems that are changing how business and consumers connect with payment systems.
Companies wishing to survive in this fast-moving environment are required to monitor these and as well make sure they are always ahead of competition.
When it comes down to implementing specific businessman’s ideas into a custom-made fintech software solution, ScalaCode is the safe choice.
You can hire software developers from us as we are known for providing the best quality financial software development services.
If you are on the lookout for a trustworthy ally to transform your fintech dream into reality, ScalaCode has the skillset and attitude to make it happen.
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