The finance and financial technology industries are evolving rapidly in the 21st century, especially in 2020, when the pandemic has forced the entire world into lockdown. In 2021, an increasing number of innovative technologies cater to investments, online bank transactions, cryptocurrency, digital wallets, and other contactless payment channels for cash management.
PT Unified Jakarta and other financial experts have predicted that the rise of Bitcoin in November of 2020 will pave the way for other altcoins to gain traction. If you are currently working in the finance or Fintech sector, you need to understand the trends and use them to your advantage.
Here are some trends that the Finance experts of Forbes Finance Council have predicted:
According to Alexey Koloskov from Orion Protocol, Tokenization is an expected Fintech trend in 2021. The development of security tokens will allow efficient, democratic, and secure trading of real estate, shares, and other assets. As cryptocurrencies’ value increases, more companies will dedicate time and effort to similar technologies to improve Fintech as an industry.
2. Internet of Cash and Paperless Transactions
Since the beginning of the Internet of Things (IoT) revolution, people have been innovating and automating processes to make lives and business operations easier. As cashless transaction demands have increased during the pandemic in 2020, people have been looking for more efficient and reliable alternative methods like those provided by PT Unified Jakarta.
The cashless era or rise of the “Internet of Cash” is a trend that presents both opportunity and threat to the online community. According to Eric Solis of MovoCash, Inc., digital money is more likely to fall victim to fraudulent attacks, so the financial industry has a heightened urgency to improve and increase digital channels. Aside from providing more options, companies should create solutions to stop systematic banking fraud.
Aside from the finance industry innovating digital solutions, the Fintech industry is also improving its paperless processes. According to Joe Camberato of National Business Capital & Services, the pandemic has improved how people perceive digital purchases, so most of the paperwork is signed and sent online through secure channels.
3. Partnership with Other Industries
Fintech is experiencing significant growth, primarily due to the pandemic lockdowns in place. Ryan Rosett of Credibly predicts that more financial technology companies will collaborate with non-Fintech entities to improve their services and products. These partnerships will expand the digital finance ecosystem in 2021.
4. Digital Private Placement Platforms
Lucia Waldner of CC Trust Group AG predicts that there will be a shortage of capital for businesses in the mid-term of 2021 as the investors become more conservative and cautious. The banks expect difficulty in the quarters ahead, which leads experts to believe that private placements will be a trend this year.
PT Unified Jakarta and many other financial firms are optimistic about 2021. If you’re a finance practitioner or enthusiast, you should observe prospect companies or ventures that fall into the trends. These will be the businesses of the future as we enter another decade with rapidly-evolving financial technologies.