The FinTech market is experiencing unprecedented growth, driven by the adoption of digital services by customers and their preference to use those technologies due to their convenience and ease of use, making it easier than ever for people to manage their finances, invest, and secure loans. As traditional financial services continue to be disrupted by the rise of digital technologies, the fintech industry has evolved to provide innovative solutions that are transforming finance for the better. With the rise of digitization and adoption of new digital technologies, there has been an emergence of new fintech trends. This trend is expected to continue in the immediate future to facilitate an easy and seamless adoption of the digital solutions by the customers. In this blog, we will discuss some of the upcoming fintech trends that you should be aware of starting from today.
The adoption of mobile banking has been one of the most significant trends in fintech. The largest reason for this is that most people in the Arab world want to use their mobile phones to access financial services. The Arab region is home to 1.6 billion people, and roughly a third of them are under 25 years old. These demographics present huge opportunity in the region, and mobile banking is a key way to increase financial inclusion. Moreover, the region’s young population is more likely to have smartphones than laptops, with many people using their phone for everyday activities, including accessing banking. This means that the region has a strong demand for convenient mobile banking services.
The changing landscape of financial services is a key trend for fintech. The Internet of Things (IoT), blockchain, and the rise of artificial intelligence (AI) will lead to the development of new financial products and services. AI will develop the ability to analyze customer data, including lifestyle information and financial habits, to recommend the most suitable products or services. Moreover, it will become easier to apply machine learning to existing financial products, creating new and innovative offerings. These changes in financial technology will help to increase financial inclusion by making financial services available to more people. This will become especially important as more countries ban cash and people are forced to rely on electronic payments.
Blockchain is a decentralized public ledger that is recorded in multiple locations and is considered an auditable record. In the FinTech industry, it is being used to create new digital currency systems, exchange platforms, and other blockchain-based applications. The use of blockchain in the FinTech industry is expected to facilitate faster and more secure transactions through cryptocurrency trading. Some leading financial institutions are working on developing blockchain-based solutions that will offer a host of benefits for customers, such as providing KYC-based services for users.
BNPL (Buy Now Pay Later)
Another fintech trend worth noting is the rise of buy now pay later (BNPL) services. BNPL is a type of installment plan where you pay for an item over a certain period of time, such as six months or a year. With the rise of online shopping, the BNPL is increasingly gaining popularity because it saves the hassle of meeting the seller and signing documents that may be a hassle for some. With BNPL, the seller creates an advertisement that includes a price and terms for the item for sale. When potential buyers see the advertisement, they are encouraged to make a purchase at the advertised price. BNPL is a popular choice in many countries, and it has been gaining more popularity in recent years in Egypt. This trend is likely to continue as the government focuses on increasing financial inclusion, as it makes it easier for people with lower income to buy items.
Technology is always changing and evolving, and it’s important for businesses to stay on top of the trends and new technologies in order to be competitive in the market. The FinTech industry is no exception. It is a highly competitive market and the best way to succeed is by identifying the trends and new technologies that will impact the market and investing in those areas.
Written by: Nadeen Hamdy
Kashier’s Marketing Team