The wave of digitalization has introduced a bunch of technologies that are set to bring in a change. Fintech is one of the most popular techs of all time, and we can clearly witness its grip on the finance sector. It is on its path to switch paper-based banking with applications and software. 

It is believed that this tech will smooth service the adverse effects of the pandemic, and will emerge out successfully. Most of the population practicing social distancing would turn to Fintech for digital payments. According to Dubai Future Foundation (DFF), this technology will flawlessly overcome the crises. This would be only possible because of the multiple advantages that it carries. Take a look- 

• Reliability

• Efficiency

• Influence on the global economic system

What Is The Trending Buzz?

All the Fintech companies that had their minds fixed on reducing transfer fees and times are on the rise. This is because they are gaining substantial funding at a global level. In the region of the Middle East and North Africa, the industry is set to draw almost $2.5B by the year 2022. 

In the UAE, more than 90% of the population is using smartphones, which is a boon for all the Fintech companies. The mobile payment sector is benefiting largely and is developing at a rate of 30%. Even though the world is suffering from the adverse effects of the global pandemic, DFF believes that the complete scenario provides an opportunity. Companies can ameliorate the process of digitalization of various financial services. The need of the hour is to improve the digital services, as a lot of people would refrain from visiting the banks as a precautionary measure. 

What Finacial Companies Need To Do Next?

With the advent of FinTech in the 21st century, it was focused on the tech employed at the back-end systems of different financial institutions. Now it is working in a direction to help the companies, users, and business owners to keep a check on these finances by making the most of specialized algorithms, software, and applications. 

It is necessary that banks and other companies must add digital platforms. This would help then to decrease the overall cost that is linked with online banking. It is a must to remove the entire online cost or at least streamline it. If the goal is to eradicate the extra online banking cost, digital currencies can play a huge role in it. The UAE and the central bank of Saudi Arabia are undoubtedly the largest economies of the Arab region. They already have a plan to create a shared digital currency, which can easily be utilized for cross-border bank transactions. 

Digital ledger technology can transfer the digital currency at a high speed. Doing this would allow the government to deliver liquidity amongst the vulnerable groups at a great speed. This would have not been possible with the traditional methods. 

The problem with the traditional money is that it needs intermediaries like banks to carry out the tasks. Therefore the unbanked are unable to get a hold of financial services. This is the reason why fintech is turning so many heads. It provides a brand new way to make transactions. To put the cherry on top, these transactions are much inclusive, secure, faster, and cheaper. 

How App Technology Is Helping?

Mobility has a huge role to play in the Fintech revolution. As smartphones allow the users to seamlessly connect with each other, it reduced the gap present between the customers and banks. Therefore, now they are able to access real-time views on bank accounts. With the rise in customer demands, banking also witnessed a visible upheaving through app technology. The progress is so strong that digital transformation and mobility walk hand in hand.

The rise in Fintech technology has scrapped the need for the user to stand in the never-ending queues just to deposit money, make the transaction or update their account booklet.

The integration of features like chatbots shows promise. Financial technology is attracting a lot of attention because of the ultimate convenience it delivers. Banks can assure convenience by integrating chatbots with their application. Technologies like natural language processing and machine learning can help the bots to improve their adoption towards human interaction. Chatbots help in numerous ways like-

• Streamline the interaction with humans

• Handle queries

• Direct user in the aptest direction  

A lot of the users and banks are sacred of the rise in fraudulent activities, refraining many to get hold of online mobile app technology. As the use of AI and ML is increasing in Fintech, fraudulent transactions are decreasing. Application is now so strong that they possess the power to detect and predict any possible frauds by the malicious entities. 

Conclusion

Fintech is basically the merging of tech into offerings companies from the financial sector. This is done in order to improve the delivery to the user base. It has grown explosively and promises a lot to different sectors. It is directed to automate and boost the delivery of financial services.

Just because we are talking about it now, doesn't mean that it was never popular. Indeed, there were a few complications, which delayed the new entrants to break into the financial services industry. But now with the whopping introduction of the financial technology industry in Dubai and the rest of the world, the progress is booming. With an aim to step into the era of complete digitalization, a lot of companies are triggering this movement to adopt this innovative technology.

As the world is in the midst of the chaos, due to the spread of COVID-19, this technology is expanding its reach. Users now prefer an application for banking, rather than following the age-old ways. The FinTech revolution has a lot in store, and it would be interesting to witness it grow. So till then, let us stay tuned to this platform for more information.