FinTech is without a question among the most disruptive technologies to ever enter the business & finance sectors. Yes, there's been booms and busts, policy changes, and even million-dollar penalties, but FinTech is what is really evolving a banks' business activities.
FinTech start-ups are now addressing everything from providing loans to investment banking, so the revolution is no longer limited to transactions.
Then there are cryptocurrencies like eToro and, more recently, blockchain technology, all of which have the power to reshape how people think about money. For now, in this article, we will review the fields of growth in Fintech.
Blockchain is the foundation upon which cryptocurrencies are built. To get an idea in a clearer way, consider blockchain to be a key technology similar to the web, with cryptocurrency being usually suitable. The crypto named eToro is going to boom this year and onward, states an authentic eToro review guide for 2021.
However, the potential for cryptocurrencies remains unclear for the future, as with many other things, blockchain will be used in a variety of applications in different areas. The blockchain is simply a safer method of storing data and interactional records.
2. Data Science
This year, Fintech companies are focusing solely on using technology to provide financial products and services. FinTechs specialize in various sectors that a specific examination of them would be inadequate.
The world financial system processes trillions of internet banking, including orders, reservations, subscriptions, transactions, loans, and trades. If this mountain of data can be properly analyzed and converted into usable details, it is worth its weight in gold.
3. AI And ML
For banks, or for that matter, in any industry, AI is both a force multiplier and a leader. Right now, what we are seeing are rule-based algorithms rather than true AI. Experts say that the challenges and implications of AI and ML are infinite, but in the meantime, it's best to focus on the technologies which appear to be exciting.
Machine learning is being developed by companies, which will allow AI to learn certain rules on its own, blurring the line between a rule-based algorithm and something that is more similar to how we work.
When referring to the lower end of the market, chatbots and robo-advisors are likely to be more useful. However, more sophisticated tools that can search mountains of data and spot patterns are needed at the higher end.
According to several industry reports, cybersecurity is one of the most serious risks to companies. The greatest loss comes not from losing valuable data, but from the reputational harm that a cybersecurity flaw will cause.
As a result, companies are more concerned than ever with cybersecurity and are inclined to pay more resources to safeguard themselves which is why FinTech and software companies that build strategies in this sector are thriving.
As the IoT (Internet of Things) is surpassing 20 billion connected devices, cybersecurity is more critical than it has ever been. This sector, along with RegTech, has the most potential for growth in the coming years.