If you are in the financial services industry, it’s worth considering the following fintech trends for the next five years. These are just a few of the many emerging technologies that are expected to have an impact on the financial services industry. Open Finance: This technology will enable banks to offer more personalized financial advice and create a unified view of customer financial data. Open Finance will also allow customers to share data with other institutions, including banks.
The customer will be the focus of the future-proof business model. Bank products must be digital and integrated into the consumer’s life. By gaining insights from data, financial institutions will learn more about customer needs and foster loyalty. One example is a partnership between Canadian bank RBC and Personetics. RBC has deployed its AI-powered financial assistant, NOMI, through a mobile app. It can provide cash flow forecasts and other financial management services, based on the data collected from customers.
Embedded Banking: More businesses are becoming fintechs. Through APIs, businesses can offer added value to customers without investing in fintech infrastructure. Super-apps like WeChat, Careem, and Kakao in Asia and the Middle East are examples of embedded banking. And as the world’s population is becoming increasingly literate, this trend will only accelerate. So, it is critical for traditional banks to embrace the changes that are taking place in the financial sector.