If you have been keeping track of what’s happening in the world of finance, then you’ve likely heard about the latest fintech trends that are shaping the future of the industry. For example, how about the rise of the digital-only banks or the adoption of robotic process automation?
The Rise of Embedded Finance Solutions
In recent years, embedded finance solutions have been gaining traction in the US. They’re being touted as a new way to extend financial services to people who don’t have bank accounts.
Embedded finance allows businesses to interact with their audiences in ways that improve productivity and strengthen their bonds with consumers. It also enables new players to reach new scale. This is an important trend in today’s fast-paced digital world.
One of the first use cases of embedded finance is payments. These include on-demand direct deposits, bill payment and cash flow management. The benefits of these are obvious to businesses and customers. Several industry verticals are leveraging the approach.
Another category of embedded finance is human capital management. This includes payroll, regulatory technology and procurement within marketplaces.
The Rise Of Digital-Only Banks
The rise of digital-only banks has revolutionized the banking sector. With no physical branch locations, these new financial institutions offer customers a wide range of flexible and convenient products. They are also gaining popularity among young people.
According to the latest data from Juniper Research, the rise of digital-only banks has gained significant market share of the traditional banks. In a short time, these financial institutions have established themselves in the market and are giving brick-and-mortar banks a run for their money.
However, this doesn’t mean that the digital banks are without their limitations. On the contrary, they face the same regulatory scrutiny as conventional banks. Whether it is the security, talent, or other factors, banks should consider these when launching their digital-only bank products.
Adoption of Robotic Process Automation
As organizations look for ways to increase efficiency and reduce costs, Robotic Process Automation (RPA) has become increasingly popular. It enables businesses to perform repetitive tasks with software robots. This technology also improves productivity and quality control. RPA is a combination of artificial intelligence and machine learning, which helps free up employees from mundane tasks.
Finance has a number of repetitive tasks. These tasks consume a lot of time and can lead to decreased efficiency and profitability. When robotic process automation is applied, finance departments can offload these tasks to robots. In turn, the freed workers can concentrate on higher-order processes.
Robotic process automation is a growing trend across industries, including finance. The technology has been embraced by companies worldwide. Among its benefits are lower costs, faster execution, and more accurate results.
Super Apps Race Will Intensify
A super app is a platform that combines multiple services, investments and other products into one seamless experience. They are typically progressive web apps. This means they work on all devices.
Super apps are already transforming the lifestyle services for millions of consumers in Asia. Other leading players in the region include Singapore’s Grab and Indonesia’s Gojek.
Many traditional businesses are scrambling to catch up with digital challengers. Some are building their own superapps and others are trying to emulate them. But what’s the role of banks in this emerging arena?
Traditionally, banks have a large customer base and proprietary data. In addition, they’ve developed brand loyalty. That could help them survive this emerging era. However, if they don’t have a clear niche, they could find themselves out of business.
Adoption of Blockchain Technology
A study of organizations adopting blockchain technology suggests four types of approach. These approaches are based on different levels of business value ascribed to the technology. In addition, these approaches are associated with different phases of the innovation process.
The implementer approach focuses on creating and implementing the technology itself. It relies on the active integration of a team of employees that are dedicated to the development of a blockchain application. This method is also less concerned with collaboration with other organizations.
The experimenter approach, on the other hand, is more concerned with testing the application and proving the technology’s value. It is also influenced by the sensemaking function.
Although the implementer approach is similar to the experimenter’s in that they both approach the innovation process with a cautious stance, the latter isn’t quite as enthused about the new technology. They cite limited business value of the technology, citing only a handful of potential uses.