The financial technology (FinTech) sector is booming and rising at a dizzying rate. The rapidity with which change is occurring has an impact on how we live our daily lives. It also has an influence on how we spend, save, protect, and invest our money.
Before the Covid-19 epidemic, which resulted in mandatory lockdowns early in 2020, the global financial technology sector was already well on its way to fame. Currently, the aggregate value of the FinTech sector is expected to be just shy of $310 billion this year.
The number of financial technology businesses and individuals impacted by FinTech’s quick ascension to the center stage is becoming incalculable. However, simply a few instances can give useful information. Even the common individual nowadays has to be aware of the future of financial technology transactions.
1. Rocket Dollar: Investing in Alternative Retirement Accounts
Investing in an IRA was the prevalent paradigm for putting money aside for the golden years until quite recently. You invest your money there, in stocks, bonds, or a mix of these three financial technology vehicles.
While all of those investment vehicles have a proven track record, not all of them provide the same return on investment (ROI). Furthermore, many conventional investing businesses take a “wait and see” approach to emergent alternatives like financial technology.
In the meanwhile, as additional solutions are reviewed, significant ROI might be lost.
For example, Rocket Dollar is a prominent alternative investing platform that can swiftly pivot and capitalize on newer possibilities, such as cryptocurrencies or startups, or non-traditional vehicles, such as real estate.
Clients of Rocket Dollar utilize their IRA to diversify their investments, which is always a smart idea. They also profit from lucrative businesses whose sole vulnerability is their inexperience. Leaning towards developing markets and keeping assets adaptable might make a lot of sense for the more daring investor.
2. Cash App by Square: Addressing FinTech Payment Security Concerns
Prior to 2020, we were undoubtedly well on our way to being a cashless society. However, the prospect of serious sickness drew a sharp, laser-like focus on the question of how we handled and exchanged currency for ordinary needs.
Many people, understandably, were hesitant to use debit cards. The few finger pokes required to input a four-digit PIN into a checkout keypad became excessive. Increased investment in contactless payment solutions rapidly became a fait accompli.
The number of entrants in the touchless transaction industry comprises all of the expected heavyweight contenders. Visa, Mastercard, Google Pay, and Apple Pay immediately come to mind.
3. Chimes
Mobile Banking is a type of Fintech App.
Chime is a top mobile fintech app for 2021, as well as one of the fastest-growing mobile-only banks. It enables customers to better manage their costs and savings all in one spot. It has no transaction fees and provides free ATMs throughout the country. One of the app’s biggest advantages is that it automatically assists you in saving by withholding 10% of the money credited to your account and sending it to your savings account.
4. Samsung: Blockchain Improves Reliability
Publicized data breaches may have harmed consumer confidence even higher than the Covid-19 outbreak.
To be fair, there’s a lot to say, but it’s reasonable to argue that, for FinTech in the coming year and beyond, an unified focus on privacy and security is required. Consumers have now spoken up, demanding that they have control over who has access to their data and that businesses properly protect against asset and identity theft.
Furthermore, customers who have been harmed by data breaches are increasingly prepared to write physical checks. They’d rather do it than risk significant financial assets. The early days of FinTech may have appeared too much like the Wild West of the 1800s.
5. YOLOrekt: Gamifying Stocks with Machine Learning
Many people who are nearing or have reached retirement age may still be hesitant to accept AI as a result of seeing Stanley Kubrick’s “2001: A Space Odyssey” in cinemas. AI and ML may bring up thoughts of Skynet computers producing hordes of deadly robots with Austrian accents in the minds of a little younger audience.
YOLOrekt, which predicts stock values through gamification, has received a lot of interest in the FinTech world. The program is approximately akin to “informed betting,” therefore results are far from certain.
6. Coinbase
Cryptocurrency Wallet is a type of Fintech App.
If you’ve been following us, you’ll note that we’ve constantly highlighted blockchain and its potential in the creation of finance software. Coinbase, for example, is one among those firms that exemplifies this. It is one of the leading cryptocurrency trading fintech applications in the United States, based on blockchain technology.
This software allows you to view the value of cryptocurrencies in real time and invest and trade in any of them by scheduling purchases. It has more than 25 million users in 32 countries. One of the nicest features of this program is that nearly all of the bitcoin is encrypted and saved offline.
FinTech’s (Possible) Future
In terms of making surefire forecasts, the previous two years have been frightening. The four big-picture trends described above, on the other hand, are almost guaranteed to acquire traction in the next months and years.
So, these are the top six fintech applications that will serve as a model for banking and financial firms in 2022.
