Top FinTech Trends In 2021br>
Despite several challenging months in the world as of late and the uncertainty of the COVID-19 pandemic, the fintech industry has seen ongoing trends that suggest a better future is on the way. You can look forward to the following movements in fintech that will certainly improve the lives of many—investors, tech innovators, businesses, governments, and consumers alike. Here are a few fintech trends to keep an eye on as we move into 2021.
- Increased Reliance and Innovation with Regards to Mobile and Contactless Payments
Even with COVID-19 vaccines now in circulation, the pandemic and its effects remain. We’ll still be encouraged to wear masks, wash our hands frequently, not touch our faces, and stay six feet apart until enough of the population has been vaccinated to begin lifting some restrictions. This is an opportunity for mobile and contactless payments, which already made our businesses more efficient pre-pandemic. With many worried about the news of an even more contagious strain of COVID-19 coming, people will rely even more on not touching anything when purchasing items at businesses or making transactions at the bank. Anticipate mobile and contactless payments trends to continue into 2021, especially with Apple Pay, Google Pay, and even QR codes. More and more retail point-of-sale systems will continue upgrading software to handle these forms of payment. Finally, businesses that were once tentative due to cost and lack of prevalence of such innovative new technologies will adopt contactless and mobile payments.
- More Focus on Digital Banking
Brick-and-mortar banks hit the bricks! Digital banking services are becoming a go-to option for businesses and consumers. They are fast, easy, convenient – not to mention safe and secure. Most online banks or traditional banks offer apps and online services that let you do many or all the usual banking activities, including:
- Opening or closing accounts
- Depositing checks
- Paying bills
- Applying for loans or credit cards
The pandemic has made mobile and online banking services of critical importance to daily financial transacting. Throughout 2021, expect more of these online-only banks, especially those aimed at a specific customer base, like Rapper Killer Mike’s Greenwood Bank.
- Continued Success and Development with Blockchain and Cryptocurrencies
You’ve probably seen it all over the news: Bitcoin value has skyrocketed as of late, hitting $35,000 for the first time since its inception. This growth only further encourages and enhances interest in Bitcoin, Blockchain, and other cryptocurrencies. If nothing else, this massive increase in value proves that cryptocurrency is not just some niche investment product anymore. It is a tangible means of financial transaction, so much so that consumers, financial institutions, and even governments are looking to get in on the action. China recently “airdropped” about $1.5 million worth of “Digital Yuan” to its citizens with a trial for its virtual currency, controlled by its central bank, a currency based on blockchain technology similar to Bitcoin, many other countries are thinking of doing the same. And the pandemic has only hastened such financial outlooks and planning across the globe. Look for more governments and businesses to do the same in 2021.
- The Propagation of Bitcoin ATMs
Big banks have neglected the underserved in “financial deserts” for too long. Many lower-income residents do not have access to traditional financial products other than payday loans, creating a cycle of bad debt. Enter Bitcoin and Bitcoin ATMs, which allow underserved and unserved communities the opportunity to bank like nobody’s business, giving people the ability to invest, store, and move their money like never before. Many residents in these areas may be paid with cash and might not even have a checking account; being able to transfer these funds quickly and easily through Bitcoin ATMs is key to them participating in the financial industry. You will see Bitcoin ATMs popping up all over the place throughout this year, just as you saw the industry’s rapid growth in 2020.
Ongoing productive fintech trends are bound to continue well into 2021. From continued improvements to, and reliance on, mobile and contactless payments to more Bitcoin ATMs and other Blockchain developments, fintech is destined to move forward regardless of what challenges the world might face. Make no mistake: fintech is built to adapt and help improve people’s lives during times of such duress. And there is little doubt that it will continue to do just that, and more, throughout this year.