Financial technology (FinTech) is quickly making an impact on the financial industry. Today FinTech is shaping financial services where it has helped to improve areas such as financial operations management while also enhancing advice and education in finance. And, with the use and development of cryptocurrency, FinTech is spearheading and revolutionizing lending, borrowing, banking, investments, and much more. In 2019, this phenomenon shows no signs of slowing down.
Contactless Technology
One of the main goals of advancing technology is to make life a little easier, and in the process add to the productivity of everyday actions for consumers. One way that FinTech plans on making things easier in 2019 is through contactless technology. Although the use of plastic debit and credit cards won’t be completely eliminated, over the next year more banks will be opting for new and efficient ways for their customers to pay for things. As an example, instead of reaching for their wallet, more people will be reaching for their phone to make payments. Customers will be able to tap their phone on card machines instead of swiping or inserting their cards.
Fewer Cash Payments
Over the years, paying with cash is becoming more and more of a rarity. As an example, the new Mercedes-Benz Stadium in Atlanta Georgia has announced that it will no longer be accepting cash at its events. In 2019, FinTech will cut back on the use of cash even more. Instead of primarily using cash, points and loyalty will become more of a currency. Consumers will be able to collect points and loyalty benefits to gain better savings on gas, flight mileage, or even getting something free from a certain retailer. Although cash will not be completely dropped, it’s a safe bet that more and more customers will opt for payment through loyalty programs due to the residual benefits from the bank or loyalty provider.
Predictive Banking
The combination of Artificial Intelligence (AI) and banking will be making a serious impact on everyday banking interaction in 2019. With the use of AI, the banking industry can store a significant amount of valuable internal and external data to create predictive profiles of customers and members. This process will allow banks and other financial institutions to know their customers in even greater detail and provide them with advice to address their financial needs. Predictive banking will not only provide greater customer service but also make banking more secure and efficient.
Better Security
Although technology offers incredible advancements that can make the financial aspects of our lives easier and more efficient, it also presents the threat of cybercrime. In that context, Banks face some of the greatest risks for a breach related to cybersecurity. In 2019, it is predicted that there will be great advancements to combat fraud. Today, far too often, everyday consumers are falling victim to identity theft and data breaches. In the battle against fraud, FinTechs will be offering better ways to protect customers. New services such as easily and quickly freezing accounts, text-messaging tools, and “Forget Me” features will soon become the norm. Just as FinTech is leveraging technology to aid and improve the consumers’ everyday financial needs, FinTech is also leveraging technology to combat the threats that the underlying technology brings to the financial playing field.