Future of Finance: 4 Fintech services will revolutionize. With the advent of technology comes the wind of change in the conventional financial transaction system. A digital payment system was introduced instead of cash transactions. The use of technology has improved the banking system over the last 40 years.
It is now possible to work on a smartphone at home without going to the bank in person to make a transaction. This time, the Fintech trend could bring more changes to conventional banking services. That is what the researchers think. The Tech Times has published a list of four of the fintech trends that could gain popularity in the banking and financial sector this year.
4 Fintech Services will Revolutionize
Open Banking
Open Banking is a concerted effort to exchange financial information across multiple applications through the Application Programming Interface (API). The API acts as a third party to connect different applications. APIs work to connect various systems within the same organization. Paul Mifsud, CEO of Sparks Bank Malta plc, said consumers will access banking and investment services from a single account. Online banking has brought benefits to consumers.
Blockchain
Blockchain has revolutionized everything from financial transactions to report preparation. Blockchain networks through digital laser technology (DLT) have created trust and transparency for consumers. Acquiring fidelity eliminates the need for a third party in digital transactions. While blockchain has gained popularity in cryptocurrencies, it has other dimensions. The contribution of blockchain technology is essential in creating security and transparency.
Decentralized Finance (Defi)
Decentralized finance like blockchain or decentralized finance is not dependent on brokerage, exchange, or bank as an intermediary. Instead, it uses intelligent deals in a blockchain. This method is also riskier as there is no other third-party control. However, it is pretty effective as an alternative to the banking system.
Banking as a Service (BAAS)
Experts are speculating about the future impact of the bank. Researchers are looking at the possibility of replacing the Bitcoin model by extending the traditional BTC model to banks. Instead of opening new businesses, banks are increasingly focusing on anti-money laundering (AML). Companies that do not rely on the banking system have recently begun to make financial transactions using technology.
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